Tanzania Women's Chamber of Commerce unhappy with proposed tax reforms that impact their members

Dar es Salaam. The Tanzania Women's Chamber of Commerce (TWCC) has raised concerns over the government's proposal to introduce a 5 percent withholding income tax on digital content businesses, highlighting potential adverse effects on women entrepreneurs.

The TWCC Executive Director, Ms Mwajuma Hamza, expressed these concerns during a private sector review of the Sh49.35 trillion 2024/25 proposed national budget reforms.

She noted that alongside a newly introduced 3 percent withholding tax on digital asset transfers, the proposed 5 percent tax on digital content creation by resident businesses could disproportionately impact women.

She pointed out several challenges arising from these measures, including the volatile nature of digital income and the ambiguity surrounding key terms like "content creator" and "digital asset," which could lead to confusion during enforcement.

“The complexity of income streams for content creators, which encompass diverse sources such as advertising, sponsorships, donations, and affiliate marketing, each potentially subject to different tax rules and rates,” she said.

While acknowledging efforts to formalize the digital economy through taxation, Hamza urged comprehensive support beyond taxation. She advocated for initiatives promoting growth and innovation among women entrepreneurs in digital spaces.

Ms Hamza also highlighted concerns about a proposed 2 percent withholding tax on payments for industrial minerals in the mining sector, noting potential repercussions for women in artisanal mining. "The government should provide better regulations and support to ensure fair practices and facilitate the formalization and growth of small-scale women miners," she emphasized.

In agriculture and fishing sectors, Hamza raised alarms about a new 2 percent final withholding tax on payments for agricultural produce, livestock, and forestry products, warning of potential cost escalations for farmers and pastoralists. She recommended that the government mitigate these impacts by improving the business environment and clarifying regulations on levies and charges during agricultural goods transportation.

Hamza underscored the necessity for policies recognizing and actively supporting women's economic participation, particularly in sectors vulnerable to fiscal reforms. She stressed the importance of tailored programs enhancing access to technical education, increasing credit availability, and focusing on high-impact sectors where women are increasingly active.

The executive director for the Tanzania Private Sector Foundation (TPSF), Mr Raphael Maganga, echoed concerns about proposed amendments affecting sectors like sugar production and gaming, urging the government to reconsider changes to safeguard private sector investments and economic stability.