Tanzania finally reduced by 30% the amount it collects from citizens in the form of a mobile money transaction levy. The decision follows weeks of public outrage over the levy.
In order to raise Sh1.254 trillion in revenue to help finance the Sh36.68 trillion budget for the fiscal year 2021/22.
The government amended the Electronic and Postal Communication Act (CAP 306) in June.
Imposing a levy of Sh10 to Sh10,000 on mobile money transactions, depending on the amount sent and withdrawn.
A charge calculation shows that sending Sh1 million to someone and having the money withdrawn, costs a total of Sh31,000. The amount combines all previous and new charges are added together.
The levy, which went into effect on July 15, was heavily criticized.
With many believing that the amount deducted was simply too high for Tanzanians to bear and that it contradicted the country’s financial inclusion agenda.
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This compelled the government to take action.
Following public outcry over the levy, President Samia Suluhu Hassan directed the Ministers of Finance and Planning, Dr Mwigulu Nchemba, and Communications and Information Technology, Dr Faustine Ndugulile, to review mobile money transaction charges in July.
However, in a move that will bring relief to Tanzanians, the Ministry of Finance and Planning announced the changes made on Monday, September 1, 2021.
Dr. Nchemba announced that, they have signed amendments to the Regulations for Electronic Transactions Levy for 2021, with a view to reducing mobile money transaction levy rates by 30%.
Most importantly, The government believes that the decision will provide relief to the people and enable them to raise funds to implement various development projects.