ELECTRONIC financial transactions are steadily becoming the new way of life in
With just a click on a mobile phone or a text message, one can send and receive money as well as make online payment. The government and a growing number of businesses now accept electronic transactions as a convenient and safer as they take advantage of mobile phone companies that have managed to bring financial services to millions of unbanked customers.
Financial transactions by mobile network companies in
About nine million are active users of the account with at least one transaction a month. The four mobile phone companies boast of 40,000 agents, offering financial services, countrywide. By comparison, banks and financial institutions, some of which established before the 1970's have reached only few people.
Findings by the 2009
However as electronic transactions are becoming the way of life in
To address the problem, the
A legal counsel with BoT, Mr
"We see the goodwill of the government on this and hopefully the new law can be out in the current financial year," Mr Sije told reporters who were attending a BoT hosted seminar for members of the press.
The use of electronic financial transaction is increasingly becoming more popular in the country, with the government, through
The new system has increased revenue collection, according to Finance and Economic Affairs Minister
Members of Parliament had earlier urged the government to speed up the electronic collection of revenues to prevent the loss of millions of taxpayer money each year to corruption and outright theft.
They argued in Parliament that the new electronic system would help officials track down revenues which never reached the treasury due to widespread corruption, including the doctoring of paper receipts.
The legislators claimed that
The move to automate tax collection and budgeting is part of a broader push internationally to use technology to improve government accountability.
TRA announced the use of the new electronic system for payment of the annual road licence fee, starting August this year. The authority's Director of Taxpayer Services and Education, Mr
The use of electronic payment has been extended to water and power utility firms, the Dar es
Speaking during the official launch of the bill payment system through mobile phones in July this year, Dawasco Chief Executive Officer,
He said Dawasco was currently collecting an average of 3.6bn/- monthly from the 2.6bn/- collected previously. Private owned companies providing digital decoders and other value-adding services use electronic payments through mobile phone companies, as well.
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