The National Payment Systems (Electronic Money Cash Withdraw Transaction Levy) Regulations, 2023

ISSN 0856 - 034X THE UNITED REPUBLIC OF TANZANIA Special Supplement No. 26 30th June, 2023 SUBSIDIARY LEGISLATION to the Special Gazette of the United Republic of Tanzania No.26. Vol.104 dated 30th June, 2023 Printed by the Government Printer, Dodoma by Order of Government GOVERNMENT NOTICE NO. 448A published on. 30/6/2023 THE NATIONAL PAYMENT SYSTEMS ACT, (CAP. 437) ____________ REGULATIONS ____________ (Made under section 46A (2)) THE NATIONAL PAYMENT SYSTEMS (ELECTRONIC MONEY CASH WITHDRAW TRANSACTION LEVY) REGULATIONS, 2023 ARRANGEMENT OF REGULATIONS Regulation Title PART I PRELIMINARY PROVISIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. Citation and commencement. Application. Interpretation. PART II COLLECTION OF ELECTRONIC MONEY CASH WITHDRAW TRANSACTION LEVY Source of levy. Collector’s obligations. Time and manner of submitting returns. Deposit of moneys collected as levy. PART III MONITORING OF ELECTRONIC MONEY TRANSACTIONS Monitoring. Disclosure of information. 1 National Payment Systems (Electronic Money Cash Withdraw Transaction Levy) GN NO. 448A (Contd) 10. 11. 12. Appeals. Power to vary or amend Schedule Revocation. __________ SCHEDULE __________ 2 National Payment Systems (Electronic Money Cash Withdraw Transaction Levy) GN NO. 448A (Contd) GOVERNMENT NOTICE NO. 448A published on 30/6/2023 THE NATIONAL PAYMENT SYSTEMS ACT, (CAP. 437) ____________ REGULATIONS ____________ (Made under section 46A (2)) THE NATIONAL PAYMENT SYSTEMS (ELECTRONIC MONEY CASH WITHDRAW TRANSACTION LEVY) REGULATIONS, 2023 PART I PRELIMINARY PROVISIONS Citation and commencement 1. These Regulations may be cited as the National Payment Systems (Electronic Money Cash Withdraw Transaction Levy) Regulations, 2023 and shall come into operation on the 1st July, 2023. Application 2. These Regulations shall apply to electronic money cash withdraw transactions through a payment system licensed under the Act. Interpretation 3. In these Regulations, unless the context otherwise Cap. 437 Cap. 399 requires- “Act” means the National Payment Systems Act; “Authority” means the Tanzania Revenue Authority established under the Tanzania Revenue Authority Act; “Bank” means the Bank of Tanzania; “collector” means a bank, financial institution or electronic money issuer; “Commissioner General” means the Commissioner General of the Authority; “electronic money cash withdrawal transaction” means a transaction which enables a user to withdraw cash money electronically; “levy” means a levy on electronic money cash withdraw transactions established under section 46A of the Act; “Minister” means the Minister responsible for finance; “user” means a person who withdraws cash money electronically or over the counter other than the Government, merchant or business; “withdrawal” means withdrawal of cash from a user’s mobile money account or bank account at a collector, 3 National Payment Systems (Electronic Money Cash Withdraw Transaction Levy) GN NO. 448A (Contd) collector’s agent or automated teller machine. PART II COLLECTION OF ELECTRONIC MONEY CASH WITHDRAW TRANSACTION LEVY Source of levy Collector’s obligations Time and manner of submitting returns Deposit of moneys collected as levy 4.-(1) Pursuant to section 46A of the Act, the source of levy shall be electronic money cash withdraw transaction by a user and shall be at a rate prescribed in the Schedule to these Regulations. (2) The levy shall not form part of the consideration for and part of the electronic money transaction covered under these Regulations. 5.-(1) A collector shall collect levy from a user at a rate prescribed in the Schedule and remit it to the Authority within seven days of the month following the month to which the levy relates. (2) A collector who fails to remit the levy on or before the prescribed period shall be liable for interest for each month or part thereof during which the failure continues compounded at the statutory rate issued by the Bank. 6.-(1) A collector shall file with the Authority, within seven days of the month following the month to which the levy relates, a return for the prescribed period in the manner and form approved by the Authority. (2) The prescribed period shall be the calendar month to which the levy relates unless the Authority, by notice in writing, determines another period. (3) Notwithstanding subregulation (1), a collector may apply to the Authority for an extension of time to file a return where reasonable grounds exist to warrant an extension of time: Provided that, an extension of time granted under this subregulation shall not exceed seven days. (4) Notwithstanding the provisions of subregulation (3), the extension of time granted shall not preclude the obligation to remit levy. (5) A collector who fails to file a return on or before the prescribed period commits an offence and shall, upon conviction, be liable to a fine of one million shillings for each month or part thereof during which the failure continues. 7.-(1) The Authority shall cause all monies collected as the these Regulations to be deposited into levy under Consolidated Fund. (2) Notwithstanding the generality of subregulation (1), where levy has been collected in Mainland Tanzania and the levy 4 National Payment Systems (Electronic Money Cash Withdraw Transaction Levy) GN NO. 448A (Contd) in Tanzania involves electronic money Zanzibar, the collector shall remit such levy to the Zanzibar Revenue Board within seven days following the month after which such levy was collected. transaction made PART III MONITORING OF ELECTRONIC MONEY CASH WITHDRAW TRANSACTIONS Monitoring Disclosure of information 8.-(1) For the purpose of monitoring transactions to which the levy relates, the Authority shall maintain a system for monitoring electronic money transactions. (2) Notwithstanding the generality of subregulation (1), the Authority shall- (a) verify the returns of the collector; (b) conduct inspection at the collector’s premises to ensure compliance with these Regulations; (c) request any data or information from the collector pursuant to these Regulations; and (d) take actions against non-compliance of these Regulations. (3) The data or information requested under these Regulations shall be provided by the collector within fourteen days. (4) A collector who fails to submit the requested data or information within the prescribed time without reasonable cause commits an offence and shall, on conviction, be liable to a fine of five hundred thousand shillings for each day during which the failure continues. 9.-(1) The Authority or any person employed by the Authority shall not disclose any information received or obtained during the exercise of its powers or performance of its duties under these Regulations. (2) Subregulation (1) shall not apply where information is required- (a) by any law enforcement agency, court of law or other lawfully constituted tribunal; or (b) for purposes of national security. (3) Notwithstanding the provisions of this regulation, any authorised person who executes or assists in the execution of a directive and obtains knowledge of any information may- to such another (a) disclose information law enforcement officer to the extent that such disclosure is necessary for the proper performance of the official duties of the authorised person or the law enforcement officer receiving the disclosure; or (b) use such information to the extent that it is necessary for the proper performance of official duties. 5 National Payment Systems (Electronic Money Cash Withdraw Transaction Levy) GN NO. 448A (Contd) Appeals Power to vary or amend Schedule 10. Any person who is aggrieved by the decision of the Authority under these Regulations may, within thirty days, appeal to the Minister. 11. The Minister may amend or vary the amounts corresponding to the rates prescribed in the Schedule to these Regulations: Provided that, the amendment or variation shall not exceed the range of rates provided for in the Act. Revocation GN. No. 478V of 2022 12. The National Payment Systems (Electronic Money Transactions Levy) Regulations, 2022 are hereby revoked. __________ SCHEDULE __________ (Made under regulation 4) CHARGEABLE RATE FOR ELECTRONIC MONEY CASH WITHDRAW TRANSACTIONS LEVY No. Electronic Money Transactions amount in TZS Rate in TZS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 100 to 2,999 3,000 to 3,999 4,000 to 4,999 5,000 to 6,999 7,000 to 9,999 10,000 to 14,999 15,000 to 19,999 20,000 to 29,999 30,000 to 39,999 40,000 to 49,999 50,000 to 99,999 100,000 to 199,999 200,000 to 299,999 300,000 to 399,999 400,000 to 499,999 500,000 to 599,999 600,000 to 699,999 700,000 to 799,999 800,000 to 899,999 900,000 to 1,000,000 1,000,001 to 3,000,000 3,000,001 and beyond 10 14 27 54 56 102 195 306 351 419 573 707 821 838 982 1245 1532 1700 1750 1776 1875 2000 Dodoma, 30th June, 2023 MWIGULU LAMECK NCHEMBA MADELU Minister for Finance and Planning 6