Ufafanuzi wa Tozo Mpya: Tanzania Tax exemption grant
The fee exemption grant, Ufafanuzi wa Tozo mpya, Msamaha wa Tozo, Tozo Mpya baada ya Msamaha wa Tozo kwenye mihamala ya kibenki na simu, The government has eliminated fees ranging from 0 shillings to 30,000 shillings.
Ufafanuzi wa Tozo Mpya| Explanation on the New tax Charges
The fee exemption granted on September 20 during the question-and-answer session in Parliament in Dodoma by Minister of Finance and Planning Dr. Mwigulu Nchemba has been clarified by the Tanzanian government today through the Ministry of Finance and Planning.
The government has eliminated fees ranging from 0 shillings to 30,000 shillings, according to Assistant Commissioner for Policy Analysis, Ministry of Finance and Planning, William Mhoja, who was speaking to journalists in the city of Dar es Salaam at the time.
He claimed that every effort had been made to work with all parties involved, including the owners of banks and telephone networks, as well as to ensure that regular users were actually present and Tasaf members when charges were canceled and exemptions from those charges were granted.
Additionally, he stated that starting on October 1 of this year, the government will waive fees ranging from 10% to 50%, while also emphasizing that the collection of these fees is necessary for maintaining the government, not serving as a punishment.
According to Mhoja, in order to streamline charges and prevent double charging, the government has encouraged the use of transactions to reduce the use of cash.
Additionally, the changes made include eliminating the fee for all bank-to-mobile network transfers and replacing it with a fee for transfers within the bank. Another change eliminates the fee for transfers from other banks in all directions.
Although he also claimed that the government had reduced the tax rates by 30% from the maximum level of 10,000 shillings to the level of above 7000 shillings, he also claimed that the government had waived the tax on the delivery of cash through financial institutions via bank agents and ATMs for transactions with a value up to 30,000 shillings.
Maana Halisi ya Tozo| The Real Meaning of Tax
Tax is simply a sum of money that a government mandates citizens pay in relation to their income, the value of their property, etc., and which is used to fund the government’s activities.
Officially Tax administration is the responsibility of a nonelected employee, that nonelected employee’s designee, or that nonelected employee’s agent.
Taxes are compulsory payments made by a government organization, whether local, regional, or federal, to people or businesses. Tax revenues are used to fund a variety of government initiatives, such as Social Security and Medicare, as well as public works and services like roads and schools.
Taxes are borne by whoever bears the cost of the tax in economics, whether this is the entity being taxed, such as a business, or the final users of the goods produced by the business. From an accounting standpoint, taxes should be taken into account, including payroll taxes, federal and state income taxes, and sales taxes.
A government typically taxes its individual and corporate residents to help pay for public works and services as well as construct and maintain the infrastructure used in a nation. The money raised from taxes is used to improve the economy and the lives of everyone who lives there.
In many nations around the world, income taxes are levied on money received by a taxpayer. The funds may come from payments for goods and services; salary income; capital gains from rising investments; dividends or interest received as additional income; and so forth.
Public services, government operations, Social Security, and Medicare are all funded with taxes. As the large baby boomer generation has aged, so have Social Security and Medicare, taking up larger and larger percentages of the total federal tax revenue spent. Tax policy has consistently been a topic of political contention throughout Tanzanian history.
A tax entails taking a portion of the taxpayer’s income and remitting it to the government. It is required to pay taxes at the rates set by the government, and it is illegal to intentionally underpay taxes, which is known as tax evasion. (However, tax avoidance—measures taken to reduce your tax liability and increase your after-tax income—is completely legal.)
Most governments employ a division or agency to collect taxes. The Internal Revenue Service handles this duty on a federal level in the United States (IRS).