By Ben Bago in Dodoma
SPEAKER of the National Assembly Job Ndugai has said the government will collect 5tri/- to finance social services in the next five years from the mobile transactions levy.
Speaking during a two-day conference for teachers with disabilities in Dodoma yesterday, Ndugai said the collections will completely transform the rural environment in the country. The conference that began yesterday was organised by the Tanzania Teachers Union (TTU).
"The newly-introduced levy that was endorsed during the previous parliamentary budget session is crucial in generating revenues for rural development and improvement of infrastructures in education sector," he said.
"We passed it in good faith but if there are concerns in a sense of placing heavy burden to our people, the government will opt for the better way to go about it, as advised by President Samia Suluhu," said Speaker Ndugai.
He said that the MPs clearly knew that they will be blamed by their voters for endorsing the newly-introduced levy, but they decide to go on with it, because they believe the move will benefit the entire nation.
The charges have attracted concerns from the public, claiming that the deductions were too high.
"We knew that there will be a reaction on this move but we decided to go on... we have a lot of challenges and the country needs more cash to finance social services," he added.
During the previous budget meeting, the parliament endorsed amendments to the Electronic and Postal Communication Act, CAP 306, 2008 for imposition of a levy of between 10/- to 10,000/- in each mobile money transaction of sending and withdrawing, where the government targets to collect 1.2tri/ this fiscal year.
Also, the amendments have imposed a levy of between 10/- to 200/- per day per SIM card depending on the ability of the user to recharge the balance, where the government also intends to collect 396.3bn/-.
Speaker Ndugai said this was not the first time such levy was passed in the parliament. He recalled ten years back when House imposed the REA's levy on electricity bills, saying that the levy has enabled rural electrification and everyone is enjoying the available services.
Recently, President Samia pledged a review of mobile money transaction charges, but insisted that the newly-introduced levy is crucial in generating revenue for rural development.
President Samia said since the government was attentive; it had heard people's complaints and worked on the matter.
"I directed two ministers (Finance and Planning Minister and Minister for Communications and Information Technology) to sit down and work on the matter," President Samia said.
She said upon receiving recommendations from the committee the government will inform the public on the way forward.
Meanwhile, the government has commenced collecting property tax through prepaid electricity bills.
The move follows an amendment of the Local Government Authorities (Rating) Act, Chapter 289 passed by the parliament in June 2021, where property tax rates have changed.
This method recognises that electricity meters are usually allotted to properties, because the payer may be the owner or occupier of the rateable property.
According to a statement released by Tanzania Revenue Authority (TRA) Commissioner-General Alphayo Kidata, the execution began today and was carried out under the guidance of the taxman in partnership with Tanzania Electric Supply Company (TANESCO).
With this new collection system, he said each month 1,000/- will be subtracted on electricity token for ordinary buildings with one meter; and 5,000/- per month for every storey building or apartments with one meter.
"Payment for property tax will be carried out on every purchase of the electricity unit up to the limit of the rates specified for the respective month," he said
The current property tax rates are 12,000/- for each ordinary building within the plot up from 10,000/- that was formerly collected, and 60,000/- for each floor of every storey building or apartment up from 50,000/-.
However, with District Councils and Small Town, storey buildings regardless of the number of floors will be charged 60,000/-.
He said landlords whose buildings are not connected to electricity will continue to pay the tax using the previous arrangements until further notice.
The Commissioner maintained owners of buildings and the public, with any grievances about the new arrangement, are compelled to visit TRA offices near their areas.
At least 571.12bn/- was collected from the local government authorities during the 2019/2020 fiscal year. The collection was equivalent to 89.7 per cent of the target, which was to collect 765bn/-.
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