Country
Tanzania

Local Project Partner
Institute of Development Studies

German Project Partner
--

Donor
ICTD

Duration
20.03.2023 - 31.03.2024

Since the introduction of a new tax on mobile money transactions, the cost of mobile money transfers and withdrawals from mobile accounts has increased by a 10% excise tax in addition to the existing 18% VAT.

The introduction of the mobile money fee in July 2021 and subsequent changes will have an impact on the transaction costs of micro and small enterprises using the "Send to Bank" function, the standard method of repaying loans with mobile money used by Tanzania Savings and Credit Cooperatives (SACCOS).

The project will therefore analyse (i) the number of repayments and (ii) the amount repaid for the different months and levy rates applied to show whether or to what extent the introduction and subsequent reduction of the levy affects these results.

Task

The project examines the loan repayment behaviour of SACCOS members in Tanzania, focusing on the impact of taxes levied since the introduction in July 2021 and subsequent tax adjustments until December 2022.