Tanzania has reduced its mobile money levy by 30% after complaints from residents that the levy was a financial burden.

In June, the government had amended the Electronic and Postal Communication Act (CAP 306) by imposing a levy of between Tsh10 ($0.0043) and Tsh10,000 ($4) on mobile money transactions. The levy took effect on 15th July 2021.

The levy was aimed at raising revenue by Tsh1.254 trillion ($500 million) to partly finance the Tsh36.68 trillion ($15 billion) 2021/2022 budget. About Tsh63 billion ($28 million) has been collected so far.

However, Tanzanians complained that the mobile money transaction cost had become too high, with businesspeople saying their businesses would be adversely affected as people were avoiding the costly mobile phone transactions and online purchases, leading to the reduction of charges.

Similarly, in 2018, Uganda revised its controversial 1% tax on all mobile money transactions following a public outcry. The levy was to affect deposits, sending and receiving money. The government reduced the levy to 0.5% and directed that it only be applied to withdrawals.

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