Tanzania: More Pain for Mobile Money Clients

The cost of sending and receiving money through mobile platforms is set to rise, with telecom firms eying back-to-back increases in transaction fees.

Vodacom and Tigo raised charges on M-Pesa and Tigo Pesa mobile money transfers, respectively, in April, this year, ahead of another increase when the 2016/17 Budget takes effect next month. Only Airtel did not raise fees in April for its Airtel Money services.

The government imposed a 10 per cent excise duty on all mobile money transfers in the 2016/17 budget as it seeks to raise enough revenue to finance its Sh29.5 trillion budget.

Initially, mobile firms only paid tax on fees charged on sending money, but will from July 1 have to pay tax on charges levied on withdrawals, which currently comprise the largest chunk of income from the services.

Mobile phone subscribers are now questioning why telecom firms rushed to adjust tariffs in April.

The concern among consumers is that another tariff hike in July would mean that Tigo and Vodacom would have made two adjustments on the cost of sending and receiving money within the short span of only three months.

SOURCE:THE CITIZEN