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Tanzania introduces tax on digital revenues targeting Google, Facebook, others

Published

3 years ago

June 16, 2022

Global digital giants like Google, Facebook, Whatsapp, Instagram, and other digital platforms operating in Tanzania will have to start paying a 2% revenue tax beginning from July this year, according to the East African country’s finance ministry.

Finance and Planning Minister, Mwigulu Nchemba, who made the announcement in a proposed tax regime on Wednesday during the annual budget presentation to parliament, said the proposal is only awaiting waiting parliament approval before implementation.

“The Tanzania Revenue Authority will establish a simplified registration process for digital economy operators who do not have a presence in Tanzania.

“This is to keep pace with the rapid growth of the digital economy,” Nchemba said while addressing journalists after his presentation.

The announcement comes after discussions between the Tanzania Revenue Authority and the US social media giant, Meta, the parent company of Facebook, Instagram and WhatsApp, which held in April.

It also follows on the heels of many countries including Nigeria introducing such digital taxes, with the belief that since the companies are making profits in their countries, they should also pay taxes there.

So far, 136 countries have agreed on a framework tax agreement under the auspices of the Organisation for Economic Cooperation and Development (OECD), with the agreement providing for taxation in each country of operation of a minimum portion of the income earned by US digital giants, as well as a minimum global tax rate to avoid tax optimisation.

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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”