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Thursday, 22 September 2016

Tanzania: Digital Payments to Raise Taxes By Sh1 Trillion

Photo: Daily News
Electronic Fiscal Devices (EFDs).

Dar es Salaam — Digital payments of Value Added Tax (VAT) and support from business formalisation are expected to see Tanzania increase annual revenue collection in taxes to Sh1.03 trillion, a new report by United Nations on digital payments shows.
In a statement availed to The Citizen by Better than Cash Alliance head of communications Angela Corbalan said, while many emerging economies were grappling with how to modernise their economies, improve transparency, drive sustainable growth and advance financial inclusion, a study on Tanzania's digital payments revealed achievements.

"The country's tourism sector has reduced economic leakages in areas of conservation park entry fees by 40 per cent after replacing old revenue collection methods with electronic payment," reads part of a statement.
The Better than Cash Alliance established under the United Nations Capital Development Fund (UNCDF) says digitising payments has enabled the country reduce bureaucratic inefficiencies, including reducing import customs clearance from nine days to less than one. The new payment system has increased transparency between citizens and the government and people are being protected against fraud.
According to the report, Tanzania entered into partnership with the country's Traders Association to subside costs of purchasing the Electronic Fiscal Devices (EFDs) being among the measures of overcoming obstacles of adopting the person-to-government (P2G) and business-to-government (B2G) payments.
"The decision was reached after small-scale traders refused to digitise their point-of-sale payments by incurring full costs electronic billing machines," reads the statement.
Report says digital payments have been helpful in driving social inclusion and helping women become independent.

Source All Africa

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