Tanzania government proposes new taxes on wigs, drivers' license fees, and sanitary towels in new budget

Dar es Salaam. Tanzania’s minister of Finance and Planning Phillipo Mpango has today proposed new taxes for locally manufactured and imported wigs and hair extensions which are quite popular with women in the country.

The minister was today June 13 tabling 2019-2020 budget in Parliament attracting an applause among the legislators. 

According to the finance minister, wigs manufactured locally will now pay 10 per cent tax whereas imported ones will attract 25 per cent tax.

The government also has proposed to amend the road safety law cap No 168 so that it can increase the validity period of drivers’ licenses from three to five years.

The Minister for Finance and Planning Dr Philip Mpango said on Thursday, June 13 when tabling the new budget in the process raising the fees from Sh40, 000 to Sh70,000.

Dr Mpango also announced the increase of fee on vehicle registration to Sh50, 000 from Sh10, 000, bajaji from Sh10, 000 to Sh30, 000 whereas bodaboda  from Sh10, 000 to Sh20, 000.

He said the aim of the proposal is to reduce cost used in printing new drivers’ licenses after every three years, yet the licenses can last for more than five years.

The minister also reinstated Value added tax on sanitary towels because the exemption which was announced last year has not helped to reduce the prices

Instead he said it was the business people who were reaping from the exemption.