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Kenya to Revamp Mobile Money Transaction Tax
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Kenya's government is looking to revamp its recently introduced 10% tax on mobile money transfer fees so that companies offering the service for free would also pay the tax.
Safaricom currently passes the 10% tax on transactions above Sh100, but absorbs the tax on its transaction fee for smaller transactions.
However, Airtel and Yu do not impose a transaction fee, so there is no tax to be paid.
Finance minister Njeru Githae said a 'minimum charge per transaction' would be introduced shortly to replace the percentage based tax, and as he said, level the playing field amongst all the operators.
"The concern is about those offering free services [as] there is always a cost associated with transferring money. So with the minimum charge it is up to the company if it will still want to meet the cost," Githae said yesterday.
Treasury is aiming to collect Sh4.5 billion (US$51 million) from the new tax.
Tags: [mobile money] [Kenya]
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