Tanzania: Financial authorities suspend tax on money transfers

Oct 08, 2013

The Tax Revenue Appeals Board has postponed the implementation of the new excise duty on money transfers until next month, following an appeal from the Tanzania Bankers Association (TBA).

The Tax Revenue Appeals Board has postponed the implementation of the new excise duty on money transfers until next month, following an appeal from the Tanzania Bankers Association (TBA).

The country's bankers believe that the government did not give enough notice for banks to implement the changes. Both parties failed to reach consensus on the implementation of the duty, which was supposed to start on July 1st.

The Finance Act 2013 states that banks must charge their customers a 0.15 per cent excise duty on all money transfers for
amounts
exceeding Sh30,000
(€13,7).


According to TBA Chairman Charles Kimei, quoted by Tanzania Daily News:
"The banks find it difficult to implement the tax as they don't know exactly on whom the 0.15 per cent should be charged... the depositor or withdrawer."

Mr Kimei added that banks also cannot implement the deduction until they adjust and update their systems, and thus need extra time.ADNFCR-2976-ID-801646752-ADNFCR