Why sending, receiving money to cost you more
What you need to know:
- Parliament passed the ‘Patriotism Levy’ in June to enable the govt raise some Sh1.254 trillion charged on mobile money
Dar es Salaam. Sending and withdrawing money via mobile phones will cost you more from today as the government’s new levy becomes operational.
The new levy, which was approved during the 2021/22 budget debate in Parliament in June, seeks to enable the government to collect an additional Sh1.254 trillion to partly finance the Sh36.68 trillion-budget.
The proposal was finally legalised through amendment of the Electronic and Postal Communication Act, CAP 306 with a view to imposing a levy of between Sh10 to Sh10,000 in each mobile money transaction of sending and withdrawing.
Calling it as ‘Patriotism Levy’, Finance and Planning minister Mwigulu Nchemba says it was important that every Tanzanian took part in it.
“With this levy, we seek to boost the government’s funds so we can take care of our pressing needs. We have schools that do not have running water. Apart from cholera, there is also the global Covid-19 pandemic that requires hand washing. The money will be paid through mobile money transactions,” he said during Clouds Television’s 360 Program on Monday this week.
Deductions
A look at the approved deductions indicate that for Airtel Money subscribers, who used to pay Sh350 in total for sending between Sh15,000 and Sh19,999 on the same network will now be required to pay Sh960 to send the same.
While sending the same amount to a different network used to cost Sh550, the same will now cost Sh1,160. Moreover, withdrawing the money will attract more pains whereby they will have Sh2,010 deducted instead of the usual Sh1,400.
Those sending between Sh600,000 and Sh699,999 on the same network used to pay Sh1,000 but now, a staggering Sh7,400. On the same vein, sending between Sh600,000 and Sh699,999 from Airtel Money to a different network will now see one coughing Sh10,700 instead of Sh4,300. Withdrawing the money will cost Sh13,900 up from Sh7,500. Withdrawing above Sh3 million will now cost Sh19,000, up from Sh9,000.
Sending Sh15,000 on Vodacom’s M-Pesa will cost one between Sh970 and Sh2,820 depending on whether the subscriber has been registered or not. It used to be Sh360 and Sh2,210 respectively.
Sending Sh600,000 to an unregistered client will cost Sh17,700, up from Sh11,300.
Withdrawing the amount will cost one another Sh14,400 instead of the usual Sh8,000.
Withdrawing any amount above Sh3 million will now see one coughing Sh20,000 from the usual Sh10,000.
