Tanzania finally reduces mobile money transaction levy after public outcry

Summary

• The levy, which became effective on July 15, had been roundly criticised as people believe the amount being deducted was just too high for Tanzanians to carry and that it was going against the country’s financial inclusion agenda.

By Jacob Mosenda

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Dar es Salaam. Tanzania has finally reduced the amount that it collects from citizens in form of mobile money transaction levy by 30 percent.

The decision comes after weeks of public outcry over the levy.

In an effort to raise revenue by Sh1.254 trillion to partly 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in June by imposing a levy of between Sh10 and Sh10,000 on mobile money transactions, depending on the amount sent and withdrawn.

A calculation of the charges indicates that sending Sh1 million to someone and having the money withdrawn costs a total of Sh31,000 if all the past and new charges are added up.

The levy, which became effective on July 15, had been roundly criticised as people believed the amount being deducted was just too high for Tanzanians to carry and that it was going against the country’s financial inclusion agenda.

This forced the government to act.