Tanzanian govt moves to plug MFS tax loophole

10 Jun 2016

Mobile operators in Tanzania will now pay excise duty on all ‘M-Pesa’ mobile financial services (MFS) commissions, All Africa reports. Unveiling his 2016/17 national budget, finance and planning minister Dr Philip Mpango said a new 10% excise duty on mobile money transactions will apply for both sending and receiving transactions. According to the report, commission is currently only taken from senders. The minister hopes that the plan will plug tax evasion loopholes in the ever-expanding MFS business, where billions of shillings are moved annually. The country is home to 37.64 million mobile users, of whom around 16 million are believed to utilise mobile cash transfers.