AfricaNews:– Tanzania’s finance ministry proposed new taxes on locally manufactured and imported wigs and hair extensions which are popular with women in the country.
Phillipo Mpango, who was tabling the 2019-2020 budget in parliament was applauded by legislators when he made the proposals that are likely to be unpopular with ordinary Tanzanians.
When the budget is approved, locally manufactured wigs will pay a 10% tax, while imported ones will attract a 25% tax.
In his budget speech in parliament on Thursday, Mr Mpango announced a 25% tax on imported wigs and hair extensions and a 10% tax on those made locally as part of a series of measures aimed at increasing government revenue.
The cheapest wigs currently costs around $4 (£3.40), but they can sell for up to $130.
Mr Mpango also scrapped the exemption on value added tax placed on sanitary towels, saying consumers had not benefited as businesses did not reduce prices when it was introduced.
Opposition MP Upendo Peneza said she would campaign against the removal of the exemption, adding that the government should push businesses to lower their prices.