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Tanzania Largely Scraps Levies on Money Transfers — Orbitax Tax News & Alerts

Tanzania has since 2013 applied various iterations of levies on (electronic) money transfers. The latest iteration of the rules applied from July 2022 and consisted of a levy ranging from TZS 10 to TZS 4,000 on electronic money transfers from MM (Mobile Money) to MM, MM to bank, bank to MM, and bank to bank. The levy also applied to cash withdrawals from MM accounts or bank accounts.

On 20 September 2022, Tanzania announced the elimination of the levy for most money transfer transactions effective from 1 October 2022. An announcement (in Swahili) by the Minister of Finance and Planning clarifies that the levy is eliminated for transfers from a bank to an MM network (and vice-versa), transfers within the same bank, and transfers from one bank to another bank. Further, the levy is eliminated on cash withdrawals through bank agents and ATMs to the extent the amount withdrawn does not exceed TZS 30,000. Finally, where still applicable, the levy is capped at TZS 2,000 (down from TZS 4,000) effective from 1 October 2022. Consequently, the money transfer levy remains applicable at the new cap but only to transfers within mobile money networks, cash withdrawals through bank agents and ATMs in excess of TZS 30,000, and cash withdrawals through other channels irrespective of the amount withdrawn.