Levy on cash transfers to be “friend”


Leading a cabinet team at a special press briefing in Dodoma yesterday, the minister said the government was open to suggestions from the public on how levies can be improved and will report on the model the next day. better suited to these demands.

Admitting the risk of double taxation, with dues in transactions at the bank and then over the phone, he said there was indeed a problem to be investigated.

Opinions disseminated by the general public would contribute to improving the administration of the levies established to facilitate the implementation of the systematic delivery of social services.

He said transaction levies are a burden that every Tanzanian is expected to bear to ensure that vital social service commitments are implemented.

The levies were introduced in the financial year 2021/22, with the minister claiming that over 200 billion/- have been collected and used to implement various development projects.

The 221 billion/- generated from the levies went to supporting higher education students and 177 billion/- went to building health centers, he said.

The levies are not taxes on profits but arise from the need for an inclusive levy to unite collectively to contribute to national development, he said.

Levies on remittances have been withheld in the 2022/23 budget because there are unique purposes that the government cannot postpone, he said, urging the general public to understand the vital strategic need for levies.

The levies leave the government with enough budgetary resources for unique projects and issues that cannot be postponed such as the Julius Nyerere hydropower project and the Standard Gauge Railway (SGR), thus the levies solve social service needs while strategic projects are implemented through regular development funds.

This year, the government plans to build 8,000 classrooms for pupils and students who are expected to join the first class in 2023 to learn peacefully, he added.


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