After almost a month of relentless online noises from activists and many other regular users against the imposition of additional electronic levies on electronic transactions, the government has heard the wailings of the citizens and finally decided to slash and reduce some of the electronic levies.
The controversial Minister of Finance and Planning, Hon Mwigulu Nchemba, addressed before the parliament early today that the government has come to that decision following CCM’s directory under her Chair, President Samia Suluhu Hassan.
The slashing and reduction of some levies come after directions from the ruling party’s Central Committee, CCM, under her Chair, Samia Suluhu Hassan, the President of the United Republic of Tanzania. CCM ordered an immediate review of imposed electronic levies and urged the ministry to take notes on people’s voices.
These are the actions taken by the ministry in response to the President’s and party’s orders.
- To reduce the scope of levies from the people, reduce cash transactions and encourage more electronic transactions.
- To remove double taxation.
- To remove levies charged from bank to mobile transactions
- To remove levies from mobile to bank transactions
- To remove levies from bank to the same bank
- To remove levies from one bank to another bank
- To remove levies of transactions below TZS 30,000/- from the ATM and Mobile money agents
- To reduce transaction costs between 10% – 50% based on the groups of transactions.
The changes will come into effect on October 1, 2022. Hon Mwigulu Nchemba highlighted that these changes would directly impact government revenues and urged drastic measures to be taken, including cutting government expenditures not to affect the underway government projects directly funded by electronic levies.