The Tanzania Revenue Authority (TRA) has held talks with officials from Meta Platforms Inc as part of the government plans to introduce Digital Services Tax targeting big technology companies.
Last year, the Tanzania government hinted on taxing the tech giants like Google, Facebook, Instagram, Twitter, Apple and all other social media services, arguing that they make a lot of money in the country, yet they do not pay taxes.
The Minister for Finance and Planning Dr Mwigulu Nchemba, however, said that the impeding taxes to the foreign social media companies would not affect consumers in anyway.
Meanwhile, Kenya’s National Treasury is set to increase Digital Service Tax (DST) from the current 1.5% to 3% of the gross value of online transactions, with effect from 1st July 2022. The tax first took effect on 2nd January 2021, despite outrage from citizens.
Other countries in Africa that charge the Digital Service Tax include Nigeria and South Africa.
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