Tanzanians mobile subscribers will have to pay monthly TZN1,000 (US$0.62) excise duty on SIM cards after the proposal was passed through parliament.
The Daily News reports the decision was made by the Parliamentary Budget Committee after discussions and assessment carried out with the help of taxation experts.
It is projected that the money raised from the excise tax would be allocated to three areas – clean and safe water, electricity and improved infrastructure.
“The government felt the need to explain on the decision to charge the monthly tax on SIM card,” said William Mgimwa, minister for finance and economic affairs.
“It was the MPs who proposed it and consultations were made with tax experts before the government implemented the decision.”
The Mobile Operators Association has protested that they were not included in the deliberations on the tax.
Mgimwa however clarified that the tax is limited to consumers and is not obligated to operators. He added that in the case the burden is too heavy they could rethink it.
“The government is transparent and if the excise tax is too much of a burden to the public, we will discuss and look at it afresh,” he said.
