Government of Tanzania has proposed the removal of the levy placed on mobile money transaction.
Effort to remove the levy comes in response to the public outcry of excessive charges on mobile transactions.
Being that, the government has proposes to make an amendment to the transaction fee schedule by increasing the mobile money transaction levy on withdrawals by 50 percent.
Speaking on this was the Minister for Finance and Planning, Dr Mwigulu Nchemba on Thursday, June 15, 2023.
READ ALSO: Tanzania to establish national gold reserve
Tabling the government’s revenue and expenditure estimates for 2023/24 fiscal year, 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, according to Dr. Nchemba, in order to guarantee that financial services are efficient, the Central Bank is reviewing the fees levied on electronic transactions in the nation with the intention of lowering those fees in order to increase the use of official electronic transactions.
According to him, fee reductions will contribute to a decrease in the usage of cash, achieving the government’s objective of creating a digital economy.
