Levy relief, yes, but by how much?

   

Finance and Planning minister, Dr Mwigulu Nchemba. PHOTO| FIL

By The Citizen Reporter

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Dar es Salaam. To what extent will the government reduce the new rates of the

highly unpopular mobile money levy? This is the question on the minds of Tanzanians as Prime Minister Kassim Majaliwa receives recommendations today by a special task force.

This comes at a time when the government has made it clear that President Samia Suluhu Hassan has endorsed a review of the charges.

Speaking in Mpanda District during his three-day working tour of Katavi Region last weekend, Mr Majaliwa said President Hassan had approved the review proposals, adding that the new rates will be unveiled by the end of this month.

As part of efforts to increase revenue by Sh1.254 trillion to help finance the Sh36.68 trillion Budget for the 2021/22 financial year, the government amended the Electronic and Postal Communication Act (CAP 306) in June by imposing a levy of between Sh10 and Sh10,000 on mobile money transactions, depending on the amount sent or withdrawn. A calculation of the charges indicates that sending Sh1 million to someone and having the money withdrawn would cost a total of Sh31,000. The levy, which became effective on July 15, has since been roundly criticised as people believe that the amounts are unrealistically high and fly in the face of the country’s financial-inclusion agenda.

Last month, Finance and Planning minister Mwigulu Nchemba said President Hassan had heard the outcry and had directed the ministry to work on the matter.

He said that, since the levy had become legally-binding after the Parliament approved the 2021 Finance Act and Appropriations Act, the Ministry of Finance and Planning and that of Information and Communication Technology (ICT) will have to work on the regulations, and determine the way forward.