Tanzania Budget imposes new taxes on wigs, sanitary towels

Friday June 14 2019

From July, imported wigs will attract a 25pc tax, while local-made ones will have a 10pc tax.

By THE CITIZEN

IN SUMMARY

Last year, the government introduced a tax exemption for sanitary towels.
But the Finance minister says businesspeople did not reduce prices of the products so consumers did not benefit from the tax exemption.

Dar es Salaam,

Tanzania’s Minister of Finance and Planning Philip Mpango has announced a 25 per cent tax for imported wigs and hair extensions and a 10 per cent tax for locally manufactured ones.

The taxes come into effect in July, he said in Parliament on Thursday as he read the country's 2019/2020 Budget, eliciting applause from the legislators.

Wigs are popular among women in the country.

The minister also reinstated Value Added Tax on sanitary towels, saying consumers have not benefitted from the exemption introduced last year as businesspeople did not reduce the cost of the product. Instead, businesses benefitted from the tax exemption and made more profits.