Dar es salaam. The government is also considering revising plans for mobile money transactions and bank services taxes, and ending tenants’ use of the 10% withholding tax on rental housing.
Economists welcomed yesterday’s decision and said the review of the levy would come as a much-needed relief for Tanzanians.
The tax has drawn sharp criticism and stakeholders say it makes life more difficult for ordinary Tanzanians.
An economist who spoke to The Citizen said the government had good intentions but said the accusation was unacceptable because it amounted to double taxation.
Government intervention could mean a lot, economists say, and that’s why people are blaming the same.
Yesterday, four ministers called for the indictment at a joint press conference Dodoma.
They are Mr. George Simbachawene (Prime Minister’s Office – Parliament, Policy and Coordination). Dr. Mwigulu Nchemba (Finance and Planning); Prof. Joyce Ndrichakko (Prime Minister’s Office – Labor, Youth, Employment, Disability) and Mr. Innocent Bashungwa (President’s Office – Regional Administration and Local Government).
Dr Nchemba said the government has started to address complaints about tax collection.
Read more: Opinions are mixed as new fees for electronic transactions mesh
“The government has heard protests and is working on complaints about double deductions in mobile money transactions when sending or receiving cash,” he said, hinting that a decision could be reached soon. I got
On the issue of bank charges, the government said it would renegotiate with service providers.
Regarding housing taxes, he pointed out that it is the landlord, not the tenant, who is supposed to pay the bills.
“In order to resolve disputes between tenants and landlords, the government will consider the views of those who have proposed excluding tenants from this issue so that the government can claim membership fees directly from landlords,” he stressed. .
Dr Mwigulu said the tax on rental housing makes good sense, but the tax collection strategy has been flawed.
The minister said, “We have received various opinions from various quarters, and we would like to work on it.”
Also read: Transaction tax is all about solidarity, says Mwigulu
Bashungwa explained how levies are important in solving municipal problems, such as building classrooms and medical facilities.
He said that by December 2020, the government had built 102 district hospitals, 487 health centers and 1,195 clinics.
Bashungwa said within a year mobile transaction charges had enabled the construction of 234 medical facilities, including laboratories.
However, Prime Minister Qasim Majariwa, who adjourned parliament in Dodoma earlier this year, said that 599.7 billion shillings had been issued for the implementation of development projects in mainland Tanzania and 231 billion shillings, part of the Covid-19 relief fund, had been allocated to Zanzibar. said it was paid to
Read more: Tanzania cuts mobile money transaction fees by 43%
According to the Prime Minister, the amount of funding as of December 2021 and the sectors in brackets are Sh180.4 billion (Health), Sh353.4 billion (Education), Sh32.7 billion (Water) and Sh26.8 billion (Tourism). The Tanzania Social Action Fund (Tasaf) has achieved his 5.5 billion shillings.
Dr. Daudi Ndaki, an economist at Musumbe University, told The Citizen yesterday:
“I am optimistic that the team of experts will give a positive answer that will help shape the economy of the country.”
Dr. Wilhelm Ngasamiaku, an economist at the University of Dar es Salaam (UDSM), praised the government’s move.
He expressed optimism that the team of experts appointed to review the charges would come up with measures that could not bring about complaints.
“It would be better to do more improvements and research to establish the social and financial impact of this issue (the levy). This would be more helpful,” he said.
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