Budget: Tanzania's new tax targets Google, Facebook

Tanzania Finance and Planning minister Mwigulu

Tanzania Finance and Planning minister Mwigulu Nchemba arrives to present the government’s 2022/23 Budget in Parliament in Dodoma on June 14, 2022. PHOTO | EDWIN MJWAHUZI | NMG

Tanzania will introduce a digital tax this year, the country's finance minister said, in a move targeting global internet giants offering services in the country.

The two percent tax will come into effect in July and follows similar attempts by other countries to force US multinational tech companies to pay at least a portion of their revenues in local tax.