The Legal and Human Rights Centre (LHRC) in Tanzania has filed a case against the government and wants a Judicial Review of the National Payments System Act which enforces tax on financial transactions by mobile operators.

In June this year, the government amended the Electronic and Postal Communications Act and imposed a tax on all mobile phone transactions based on the amount that is sent and withdrawn.

According to the law, sending Sh1-million and having the same amount withdrawn costs Sh31, 000.

The government has argued that tax will help raise revenue collections by Sh1.254-trillion in order to support the roll out of the country’s Sh36.68-trillion 2021/2022 national budget.

LHRC executive director Anna Henga said, “The High Court will hear the matter on August 16, 2021.”

Following a public outcry over the tax imposed, the Minister of Finance and Planning Mwigulu Nchemba said the country’s President Samia Suluhu Hassan will decide the way forward.

The Minister said a team of experts has since reviewed the mobile money tax and has released a report with recommendations which has been handed over to the President for consideration.

“I urge Tanzanians to remain calm as the government works on the matter. Their complaints have reached the president …. She has instructed that we work on the complaints,” Nchemba added.