Tanzania Women’s Chamber of Commerce unhappy with proposed tax reforms affecting its members

Dar es Salaam. The Tanzania Women Chamber of Commerce (TWCC) has raised concerns over the government’s proposal to introduce a 5 percent withholding tax on digital content businesses, highlighting the potential adverse effects on women entrepreneurs.

TWCC Executive Director, Ms Mwajuma Hamza, raised these concerns during a private sector review of the proposed N49.35 trillion national budget reforms for 2024/25.

She noted that, alongside the newly introduced 3% withholding tax on digital asset transfers, the proposed 5% tax on the creation of digital content by resident companies could disproportionately impact women.

She highlighted several challenges arising from these measures, including the variable nature of digital income and ambiguity around key terms such as “content creator” and “digital asset”, which could lead to confusion during enforcement.

“The complexity of content creators’ income streams, which include a variety of sources such as advertising, sponsorships, donations and affiliate marketing, each of which may be subject to different regulations and tax rates,” she said.

Appreciating efforts to formalize the digital economy through taxation, Hamza called for comprehensive support beyond taxes. Advocate of initiatives promoting growth and innovation among women entrepreneurs in the digital space.

Ms Hamza also highlighted concerns over the proposed 2 per cent withholding tax on payments for industrial minerals in the mining sector, noting the potential implications for women in artisanal mining. “The government should provide better regulation and support to ensure fair practices and facilitate the formalization and development of small-scale miners,” she stressed.

In the agriculture and fisheries sectors, Hamza was concerned about the new 2% final withholding tax on payments for agricultural products, livestock and forest products, warning of a potential escalation in costs for farmers and herders. It recommended that the government mitigate these impacts by improving the business environment and clarifying regulations on fees and charges when transporting agricultural goods.

Hamza stressed the need for policies that recognize and actively support women’s participation in economic life, especially in sectors vulnerable to fiscal reforms. She stressed the importance of tailored programs that increase access to technical education, increase the availability of credit and focus on high-impact sectors where women are increasingly active.

Tanzania Private Sector Foundation (TPSF) executive director Raphael Maganga has reiterated concerns over proposed amendments affecting sectors such as sugar and gaming, urging the government to reconsider the changes to protect private sector investments and economic stability.