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Tanzania LGAs Revenues: City Service Levy

20 Jun

Every March, June, September and December my company pays 0.3% of Total Turnover to the municipal for City service Levy.And All Companies operating in Tanzania should be doing the same.

Service Levy is one of the sources of Local Government Own Revenues. LGAs tax collections is the responsibility of the councils and is completely separated from the central government.

In District Councils Revenue collection is organised around 3 levels; Council Headquaters, the wards and Village levels.

City Service Levy is imposed to Corporates at a rate 0.3% of turnover payable quaterly.

My Question; Do all Companies operating in Tanzania pay City Service Levy? In Time? I bet most of them do not even know this tax exist.

 

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10 responses to “Tanzania LGAs Revenues: City Service Levy

  1. Jackson loivotok

    July 19, 2012 at 8:08 am

    My name is Jackson, I’ve been seeking extra knowledge concerning city service levy for months now, and I’m happy to know there are people out there like you who are concerned with this type of tax.

    Mon, I’m impressed with your reflection, this type of tax is not taught in undergraduate levels so I expect it to be a challenge to many fresh graduates who have just entered the system.

    I’m among them and I have faced the challenge already.

    Hope to chatting to you soon.

     
    • monfinance

      July 19, 2012 at 9:26 am

      Thank you for your comment Jackson. Please keep in touch and share the posts with others.

       
  2. Mark

    February 4, 2013 at 12:40 pm

    Most of the companies do not pay this type of tax, although they were supposed to pay. As per the Local Government Finances Act of 1982, the Service Levy should be a ‘tax’ payable by corporate entities to the local government authorities at a rate not exceeding 0.3 percent of the turnover net of the value added and the excise duty.

    Companies do not pay this type of tax because LGAs who are required to enforce payments of the same are sometimes silent, that is, they do not act on those who do not pay the levy. LGAs were supposed to provide education to corporate entities so that they can improve their revenue to finance public projects and service to all residents of the respective local authority.

     
  3. emmanuel

    June 4, 2013 at 8:45 am

    most of companies are not aware on this type of tax even some of tax auditor are not familiar with this levy, it has come to my attention when am employed to certain company and found that they were not paying this levy almost seven years back, unfortunately the authority has come to ask if payment done or not.

     
  4. omar

    June 13, 2013 at 7:48 pm

    I own a bussines in musoma, I have been charged service leavy for every month of year for past three years.how comes you said its being paid only quarterly? and onether thing how many people do pay this tax? and is this tax paid only by companies not individual? why segeregation?

     
  5. privanus

    July 18, 2013 at 10:07 pm

    To me as a trade officer i know every organization working in Tanzania should pay the service levy. It might be unfortunately in some areas the Trade Officers’ obligations may not be well fulfilled due to a number of reasons,this will result to some of organization not pay the levy.One thing to share with all is that,service levy is very important to the economy stabilization of our nation so lets make sure we pay it and advice others to pay.
    lets build our nation together

     
  6. Daudi, M

    August 21, 2014 at 6:09 am

    service levy is not limited to corporate entities only, even non corporate entities are legally bound to pay the same. refer the amendments effected in 2012 on The Local Government Finances Act

     
  7. Dittu Mr. Richard

    March 23, 2015 at 9:35 am

    Thank u very much MON, for this session. Continue educating Tanzanian to build our Nation because we do not other place to stay except Tanzania. Home sweet home Tanzania our land.

     
  8. ALUTE

    June 26, 2015 at 4:04 pm

    Nice to heard about it

     
  9. Kelvin Kisila

    April 19, 2016 at 1:05 pm

    Hello
    i would like to know if anyone has the document for city service levy law

     

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