Taxation and mobile money in Tanzania
Friday 20 Oct 2017 ｜ Digital Inclusion | English | Financial services products | Global | Mobile access and use | Mobile Money | Mobile Money Programme | Policy and regulation | Presentation | Regulation | Resource | Social impact and behavioural change | Sub-Saharan Africa |
This report examines the impact of taxation on mobile money in Tanzania, in light of the positive impacts of mobile money in the country. Whilst mobile money has increased financial inclusion, it is now being taxed in the same way as products that generate negative impacts – such as alcohol and cigarettes.
This report provides clarity on the idea that mobile money transactions amount to over half of the country’s GDP. In reality, the tax-base potential of mobile money fees is much smaller. However, by adopting mobile money rather than taxing it, governments stand to broaden their tax-base through the digitisation of payments, as well as promote the many benefits that mobile money offer society.
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