Tanzania: Samia Slashes PAYE By 1%, Salary Increments Next Year

President Samia Suluhu Hassan.

AS Tanzania joins other countries in the world to commemorate May Day, President Samia Suluhu Hassan has slashed Pay As You Earn (PAYE) tax rate by one percent as she promised to raise salaries in the next year's May Day

Speaking during the national celebrations of Workers Day famously known as May Day at CCM Kirumba Stadiums in Mwanza, Her Excellence said PAYE will be 8 percent, down from current 9 percent.

"PAYE will be 8 percent, down from 9 percent," she said.

On the other side, the President put it clear that her government is not in the right position to raise salaries this year, citing economic factors.

She said the country's economy growth rate has dropped from 6.95% to 4.7% as a result of COVID-19 global pandemic which affected the global economy as well.

"... I have failed to fulfill your expectations ... .It's hard to increase salaries this year," she said.

However, she promised to raise salaries next year as well as setting minimum wages for both private and public workers.

Understanding workers" contribution to the country's economy, Samia insisted "... ..but I have considered other several issues aimed at improving workers stipends," said President Samia.

On the other side, President Samia Suluhu Hassan says the government has cancelled six percent Value Retention Fee (VRF) charged annually on outstanding loans taken by Higher Education Students' Loans Board (HESLB) beneficiaries but monthly 15 percent deductions from basic salary remain intact.

Earlier, Trade Union Congress of Tanzania (TUCTA) acting Secretary General, Said Wamba said in order for workers to cope with various challenges in their life, living wages (minimum wages) for workers from both private and public sectors should be 970,000/-.

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