In 2023, the tax on airtime, data and bank cash transfers had been cut by five percent, while that on mobile wallet transfers had been increased from 12 percent.
In addition to the excise changes, the National Treasury is also proposing to introduce value added tax (VAT) on financial services, including forex transactions and cheque processing.
The cost of moving cash in the economy is set to go up following a proposal by the National Treasury in the Finance Bill 2024 to raise the excise duty levied on fees charged on transactions on mobile wallets and bank accounts.
The Bill wants to raise the excise on fees charged for mobile money transfers between wallets to 20 percent from the current 15 percent.
