Government proposes removal of mobile money transaction levy
What you need to know:
- Furthermore, Dr Nchemba said the government proposes the abolishment of the daily levy imposed on each SIM card based on the ability of users to recharge the balance in order to stimulate the use of electronic transactions.
Dar es Salaam. The government has proposed the removal of the mobile money transaction levy that includes sending and receiving money electronically, a move that responds to public outcry related to excessive charges on mobile transactions.
Instead, it proposes to make an amendment to the transaction fee schedule by increasing the mobile money transaction levy on withdrawals by 50 percent. The minister for Finance and Planning, Dr Mwigulu Nchemba, made the revelation yesterday in Parliament when tabling the government’s revenue and expenditure estimates for 2023/24 fiscal year.
Tabling the budget, Dr Nchemba, who doubles as Iramba West Constituency Member of Parliament (MP), requested the legislators approve Sh44.4 trillion.
“The measure is intended to remove double taxation in one transaction as well as stimulate electronic payment transactions. This measure is expected to increase the government’s revenue by 16,711.5 million shillings,” he said during a live broadcast event.
However, Dr Nchemba said in order to ensure the efficiency of financial services is achieved, the Central Bank, in cooperation with financial service providers, is reviewing charges imposed on electronic transactions in the country with the aim of reducing those charges so as to increase the use of official electronic transactions.
He said fee reductions will help reduce the use of cash, thus fulfilling the government’s goal of building a digital economy.
Furthermore, Dr Nchemba said the government proposes the abolishment of the daily levy imposed on each SIM card based on the ability of users to recharge the balance in order to stimulate the use of electronic transactions.
He said BoT has continued to take various measures aimed at increasing the use of electronic systems in making transactions.
“They include the upgrading of National Payment systems, including the completion and commencement of use of the Tanzania Instant Payment System (Tanzania Instant Payment System - TIPS), and the stable management of payment systems in the country,” he said.
According to him, the improvement of this infrastructure is an important step to achieve the goals of citizens’ inclusion in the official financial system and the country’s transition to a digital economy.
