Tanzania: Govt Reverses Major Tax Decisions

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In: Tanzania Foreign Investment News

The Tanzanian government announced on Monday the retraction of several tax decisions, following an extraordinary meeting with representatives of business communities and pressure from Kariakoo traders.

Major market traders at the country’s largest international market closed down their stores for hours on Monday in what was reported to be an indefinite strike on the country’s proposed financial bill of 2024/25, among other issues.

They immediately called it off following the government’s decision to seek a consensus with their representatives; the decision, however, did not hold water as dozens of stores went on shut mode.

The strike was planned for Kariakoo market, before escalating to Mbeya, Iringa, Ruvuma, Rukwa, Mwanza and Arusha Regions.

Speaking to reporters in Dodoma on June 24, Minister of Planning and Investment Prof. Kitila Mkumbo said the government has suspended indefinitely the inspection of EFD receipts and VAT returns which was commissioned by the Tanzania Revenue Authority (TRA) at the Kariakoo Regional office in Dar es Salaam.

“TRA will now prepare a better system to confirm receipts, however, until then this inspection will be on hold,” he said without specifying the final dates for the new system to take off.

He went on to details that the government will further revisit its legislation on tax calculations to ensure it does not create grievances among traders. He was referring to the calculations conducted by authorities on imported goods through ports of entry.

Also Read: Govt, Kariakoo traders seek amicable solutions

Minister Mkumbo emphasized that the Financial Bill has not yet been approved for the second reading, urging the public to continue submitting their opinions.

“We are committed to creating a fair and transparent tax system that supports both the government’s revenue goals and the business community’s needs,” he said. “It is important that everyone doing business at Kariakoo pays tax.”

Minister of Finance Dr. Mwigulu Nchemba, Minister of Industry and Trade Dr. Ashatu Kijaji and Attorney General Judge Eliezer Feleshi attended the meeting in Dodoma.

On the other hand, Dar es Salaam Regional Commissioner Albert Chalamila assured traders that the government will protect all traders who will open their stores, warning individuals who had threatened to harm stores defying to strike.

Mr Chalamila said all complaints submitted by traders to the government will be addressed accordingly.

Source: allafrica.com

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Mobile money subscriptions rebound after scrapping of Airtel transfer code

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In: Tanzania Foreign Investment News

The number of subscribers on mobile money platforms has rebounded, a new report by the Communications Authority of Kenya (CA) shows, citing the removal of a code that forced customers on Airtel Money to withdraw cash within seven days of receipt or see the amounts reverted to senders.

The latest sector statistics report published by the regulator shows that subscribers onboarded into the mobile money ecosystem during the three months to March this year totalled 700,000, bringing the number to 38.7 million up from the 38 million recorded as of the close of December.

The surge bucks a trend of slumps that commenced in March last year when the number stood at 38.4 million, before dropping to 38 million by June, which was followed by a mild increase to 38.1 million as of September of the same year.

“During the reference period, mobile money subscriptions grew to 38.7 million translating to a penetration rate of 75 percent. Although there was growth in subscriptions, the penetration rate dropped due to a review of the denominator on population following the release of the 2024 Economic Survey,” reads CA’s latest report.

“The growth in mobile money subscribers is attributed to the removal of withdrawal codes for transactions sent from M-Pesa to Airtel Money, which means that funds can now be transferred directly into the Airtel Money account (wallet).”

According to the 2024 Economic Survey published by the Kenya National Bureau of Statistics, the number of mobile money subscribers in the country dropped by 600,000 during the full year to last December.

The country’s second-largest telco eliminated the restrictive code in early February this year, allowing Airtel Money customers to receive money directly into their e-wallets from any network.

“This development effected on February 6, 2024, comes in response to the Central Bank of Kenya (CBK) and industry players’ collaborative efforts to ensure seamless mobile money interoperability as outlined in the CBK National Payments Strategy 2022-2025,” said Airtel at the time.

With the changes, users registered on rival platforms can send as little as Sh1 up to the highs of Sh250,000 per transaction daily to Airtel Money accounts.

The National Payments Strategy by the CBK requires all mobile money providers to ensure a seamless customer journey across their different channels to allow on-network and off-network direct transactions.

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Tanzania Commits to Restoring Forest Landscapes

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In: Tanzania Foreign Investment News

Tanzania is committed to planting 5.2 million trees by 2030, as part of initiatives to restoring forest landscapes for a healthy planet and wealthy economies.

The commitment was expressed by the Minister for Natural Resources and Tourism, Ms Angellah Kairuki over the weekend during the 8th annual partnership meeting under the African Union Development Agency- New Partnership for Africa’s Development (AUDA-NEPAD).

“So far, 34 countries have agreed and have pledged to restore more than 129.5 million hectares. In this effort, Tanzania is committed to planting 5.2 million trees and has already planted 2.4 million trees, which is 46 per cent of our pledge,” she said.

Ms Kairuki said that President Samia Suluhu Hassan is among the world champions of natural conservation.

She has led the campaign of planting trees in the country, including spearheading efforts to switch to clean energy for cooking.

“President Samia has always been advocating for environmental conservation and tree planting, which is why she launched the ‘clean cooking energy’ campaign.

Through this campaign, we have seen her leading efforts to promote the restoration of our forests,” said Ms Kairuki.

Also read: Tanzania on right track on forest landscape restoration

Furthermore, Tanzania Forest Services (TFS) Chief Executive Officer Professor Dos Santos Silayo said that Tanzania has taken steps to conserve forests and natural vegetation by designating village lands that were not previously protected and upgrading the status of lower-grade forest areas to natural forests.

He said the objective is to enhance their protection. “For completely degraded areas, we planted new trees for environmental conservation and others for commercial purposes.

This was done to reduce reliance on natural forest resources and obtain them through sustainable plantation methods,” Prof Silayo said.

He said that TFS is coordinating management by improving the supervision of resources, a practice that many other countries are also adopting.

Prof Silayo added, “We have changed our resource management system from a civilian management system to a military one to have a team of committed and dedicated individuals with the discipline and expertise to carry out this work more efficiently and achieve the government’s goals.

He added that various activities have been carried out to restore forests and prevent their loss including making changes and amendments to policies, laws and regulations that govern the management and use of forest resources and various ecologies.

Source: allafrica.com

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Zanzibar orders continued holding of 25 containers of alcohol

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In: Tanzania Foreign Investment News, Zanzibar Business News, Zanzibar Foreign Investment News

In a letter addressed to the director general of the Zanzibar Ports Authority, a copy of which The Citizen has seen, the board said the three companies, ZMMI, Scotch Co. Ltd, and One Stop Ltd attempted to clear their alcohol consignments without the requisite importation permits, contravening Section 33 of the Liquor Advisory and Control Act of Zanzibar No. 9 of 2020Continue Reading