Although under review by the Tanzanian authorities since last July, the mobile money tax continues to anger Tanzanian consumers.
The government of the Republic of Tanzania has set itself the goal of collecting 5 trillion Tanzanian shillings ($ 2.1 billion) from the Mobile Money tax over the next five years. The money will be used to finance social services, revealed Job Ndugai the president of the National Assembly, Thursday, August 19 in Dodoma, at the opening of the two-day conference of teachers with disabilities. It was responding to their concern about improving their working conditions.
According to him, “ the new levy that was approved during the previous parliamentary budget session is crucial to generate income for rural development and improvement of infrastructure in the education sector […] We adopted it from good faith, but if there are concerns about placing a heavy burden on our people, the government will choose the best way to proceed, as advised by President Samia Suluhu ”.
“We knew there would be a reaction to this decision but we decided to continue […] we have a lot of challenges and the country needs more liquidity to finance social services, ” added Job Ndugai.
Last June, the government imposed a tax of 10 to 10,000 Tanzanian shillings – depending on the value of the transaction – on Mobile Money. But consumers denounced it, saying they were also impacted in their finances by the disease. Following the anger of the growing population, Mwigulu Nchemba, the Minister of Finance and Planning, announced on July 19 a review of the tax on the instructions of the Head of State. The operation is still in progress.
The pressure imposed by the government on mobile money users could ultimately harm the industry rather than bring it the expected gains. In 2020, more than $ 80 billion passed through mobile, according to market analysis technology company ReportLinker.