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

Published

2 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.

Related Topics:Featured Google Meta Tanzania tax

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IMF mission concludes 4th loan program assessment in Egypt

Published

12 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.