Tanzania's solidarity tax

Financial services are important for development. Most people in developing countries lack access to financial services. The availability of financial services on mobile phones has made these services accessible to people who previously lacked access. Economists have recommended that infrastructure and tax systems be improved in order to enable more people to benefit from mobile financial services. However, in 2021 the Tanzanian government introduced levies on mobile transactions and airtime, which increased the costs of transactions, contrary to the advice of economists. This briefing discusses the taxes on mobile money transactions and their economic legitimacy, considering the fact that the country was not in an emergency and that there are revenue losses.