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Tanzania collects billions in mobile money tax

September 9, 2013 • East Africa, Mobile and Telecoms

Tanzania is home to a growing economy. The government and tax efforts are moving slowly in order to help develop infrastructure for the budding East African country. On Friday last week, the Tanzania Revenue Authority (TRA) announced that it had collected some TZS 4.7 billion (approximately $2,5 million) in three weeks after a new payment system plan using mobile phones was launched.

Tanzania has one of the most booming economies in Africa (image: http://alliyaandmalyia.blogspot.com/

Tanzania has one of the most booming economies in Africa (Image source: http://alliyaandmalyia.blogspot.com/

It also received revenue from annual motor vehicle licensing fees, which have also been moving into the virtual world.

In the same period, and before introducing the system, collection went only slightly above TZS 3 billion.

TRA added that “the system saves taxpayer time and cost of travelling to revenue authority’s offices to effect the payment in person.”

The SMS number works with Vodacom, Tigo and Airtel service providers and the customer receives a response immediately.

The ability to collect taxes and enable mobile money to be successful is a prominent goal for the TRA in the coming months and years. The authority has said that if they can begin to collect taxes on monetary transactions in the country, it should help to continue the government’s efforts to build telecommunications and other infrastructure across the nation.

Mohammed Awad

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