The Government as part of measures to increase revenue mobilisation has placed a tax on mobile money transactions in the country.
The finance Minister announced the introduction of the Electronic Levy tax while presenting the 2022 Budget estimates in Parliament on Wednesday.
“Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient,” he announced.
He explained that the money that would be realised from the e-transaction tax will be used to support entrepreneurs.
“Portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others,” he said.
More to follow