This archive report was first published on 3 September 2021.
Published on September 3, 2021, Tanzania has reduced its mobile money levy by 30% following public complaints that the levy was a financial burden.
The government had amended the Electronic and Postal Communication Act (CAP 306) in June, imposing a levy of between Tsh10 ($0.0043) and Tsh10,000 ($4) on mobile money transactions. The levy took effect on July 15, 2021.
The initial levy aimed to raise revenue by Tsh1.254 trillion ($500 million) to partly finance the Tsh36.68 trillion ($15 billion) 2021/2022 budget. However, about Tsh63 billion ($28 million) has been collected so far.
Businesspeople complained that the mobile money transaction cost had become too high, with many avoiding costly mobile phone transactions and online purchases, leading to a reduction in charges.
Similar concerns led to the revision of Uganda's 1% tax on mobile money transactions in 2018, following a public outcry. The levy was reduced to 0.5% and applied only to withdrawals.
