Government abolishes levies on electronic transactions

Finance and Planning minister Mwigulu Nchemba addresses a past news conference. PHOTO | FILE

Summary

  • He said that the Government had reduced the scope of charges, stimulating the use of electronic transactions to reduce cash, simplifying charges and preventing double taxation on the same income.

Dodoma. Government has today September 20, announce the abolition of the recently introduced levies on electronic transactions which took effect on August 15 following a public outcry.

The decision was announced by the Minister of Finance and Planning, Dr Mwigulu Nchemba in Parliament after the question and answer session.

He said that the Government had reduced the scope of charges, stimulating the use of electronic transactions to reduce cash, simplifying charges and preventing double taxation on the same income.

"The amendments made are to cancel the levies for transferring money from banks to mobile networks (both sides) and to cancel levies for transferring money within one bank," he said.

According to Mwigulu another amendment that they have made is to cancel the fee for transferring money from one bank to another bank.

He has also said that they have waived the transaction fee on withdrawal of cash through bank agents and ATMs for transactions with a value not exceeding Sh30,000.

Dr. Mwigulu said that the new changes will come into effect on October 1, this year.

In addition, he said that the Government has decided to abolish withholding tax on rental properties which were to be collected by tenants and instead the responsibility has been returned to the Tanzania Revenue Authority (TRA) in a manner that will be specified in the regulations.

"I would like to emphasize that the withholding tax is not for the tenant but should be paid by the landlord who receives income from investment or rental business," he said.