Africa-Press – Tanzania. THE government has clarified its decision to impose additional levies on fuel and SIM cards, saying the move aims at generating funds for improving road infrastructure in all local government authorities and health care services.
The clarification comes in response to concerns over the increase of fuel prices and mobile money transaction charges, which commenced effectively from July 1 this year.
While the price of fuel has seen an increase of 100/- per litre, mobile phone users are now being charged between 10/- and 200/- per day depending on the amount spent in recharging vouchers.
Speaking during an interview with a local television station yesterday, the Minister for Finance and Planning, Dr Mwigulu Nchemba said the adjustment on the two levies was done with the aim of improving the country’s infrastructure and maternal health care, especially in all hard to reach areas.
All these are part of efforts by the government to implement the country’s 36.68 tri/- budget for the financial year 2021/22, which kicked off on July the transport sector at large.
“The government considered all the side effects that would come after the introduction of the new levy on fuel, the negative impacts are less than the benefits that the country is going to record, it’s a matter of time where the whole nation is going to have improved infrastructure,” he said.
Tabling the budget estimates for the year 2021/2022 in Parliament last month, Dr Nchemba proposed amendment of Roads and Fuel Toll, CAP 220 to increase Road and Fuel Tolls by 100/- per each litre of petrol and diesel to be used for road maintenance in rural areas through (Tanzania Rural and Urban Roads Agency (TARURA).
According to him, the adjustments were expected to generate government revenue by 322.15bn/-.
Speaking of the SIM card levies, the minister said the government opted to create a solidarity fund that will see all users of mobile phones pay for improvement of the water and health sector.
“This money will be generated specifically to connect public institutions such as schools and health centres with water service,” he said, noting that the levies provide a platform for a large number of Tanzanians to take part in supporting national development.
A just introduced SIM card levy of between 10/- to 200/- per day per SIM card depending on the ability of the user to recharge the balance is expected to increase government revenue by 396.30bn/-.
In another development, the minister said the government is conducting an assessment that would come up with a better modality of bringing back forex shops without affecting circulation of money in the country.
Dr Nchemba noted that the government will work on concerns from owners of forex shops for smooth operation. However, he was quick to remind Tanzanians on the importance of complying with different policies and guidelines introduced by the government since they are meant to regulate business and the economy at large.
“I have met with owners of forex shops who, among other things, asked the government to return their business licences and revisit the starting capital for operating the shops, and have already issued instructions on what to do,” he said.
In December 2018, the Bank of Tanzania (BoT) conducted inspections of all forex shops in the country and found most of them not meeting the requirements of the law governing the businesses.
Due to this, BoT ordered them to give explanations as to why their licences should not be revoked for failure to adhere to laws and regulations.
