Tanzania scraps mobile money transfer fees

The Tanzanian government has scrapped its mobile money transfer levy starting October 1, 2022. The scrapping comes three months after the government slashed the transfer levy by 43%. 

Aside from mobile money transfers, Tanzania will remove the fee for bank transfers and waive the transaction fee on withdrawal of cash through bank agents and ATMs for values not exceeding 30,000 Tanzanian shilling (US$12.81).

Speaking in the East African country's Parliament, Finance and Planning minister Mwigulu Nchemba said scrapped levies will also include those on money transferred from bank accounts to mobile networks, money transferred within the same bank as well as money transferred from one bank to another. 

The minister added that to cover the revenue it will lose from the cancelled levies, the government is looking to cut down expenditure on things such as conferences, training, refreshments, and trips. 

"We have decided to review the levies to reduce the burden on society, to foster cash transactions and avoid double taxation," the minister told Parliament. Nchemba also announced a 10% to 50% cut on mobile money transaction costs, the maximum levy currently stands at TZS4,000 (US$1.72) and with the cut, the maximum levy will be reduced to TZS2,000 (US$0.86).

Read more at https://www.connectingafrica.com/author.asp?section_id=816&doc_id=780576​