Tanzania’s Finance Minister has proposed the inclusion of a 3% tax for crypto traders.
The country lifted its ban on cryptocurrency in 2021 when it saw a change in presidency.
The Tanzanian Government has announced amendments to its Income Tax Act including a 3% tax for crypto traders recently. Notably, the Tanzanian government has made further advancements to its finance system in the following days.
According to the proposal, the Minister for Finance, Dr. Mwigulu Lameck Nchemba Madelu, suggested amendment postulates of tax withholding last week. The proposal arises from a history of a rough road for cryptocurrency within the African nation.
According to sources, Dr. Madelu’s speech included advocating for amendments under three different postulates. While the leading amendment related to tax withholding on digital assets, the other two postulates focused on the exchange and foreign citizen permits.
Additionally, foreign citizens, who are crypto traders, are also expected to register with the nation’s Revenue Authority, under the Simplified Tax Regime. These amendments are expected to boost Tanzania’s revenue by 465 million shillings, worth $174K approximately. This tax is expected to be received by the Tanzania Revenue Authority.
Furthermore, the country also plans to impose taxation on digital content creation as reported in the budget statement.
How Does Tanzania’s Crypto Landscape Look Like?
Notably, Tanzania has shown resistance to the adoption of crypto and digital assets in the past. In 2019, the Bank of Tanzania (BoT) issued a statement prohibiting the ‘trading, marketing and usage of virtual currency’. It further stated that these actions are contrary to the then-existing foreign exchange regulations.
Moreover, this ban came as an unsettling announcement to the crypto community. Apart from the bank’s official statement, other acts in the nation also prohibited trading of cryptocurrency. Later in 2021, the newly elected president allowed the adoption of digital currency and blockchain technology.
This recent amendment of the Income Tax Act has been seen targeting crypto traders. These announcements result from the finance sector working to enhance Tanzania’s revenue. On June 17, the deputy chief of Tanzania’s Ministry of Finance advocated for companies to boost the country’s financial institutions by enhancing strategies.
Moreover, the crypto sector has witnessed various countries such as Zimbabwe and Taiwan make advancements toward crypto regulations in the past week.
Highlighted Crypto News Today: Ethereum Hit One-Month Low Amidst $19M Whale Deposit