Tanzania’s finance ministry has 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.
East African finance ministers including from Uganda, Rwanda, Kenya and Tanzania presented their budgets for the next financial year on Thursday.
More from Tanzania’s budget
Mpango said Tanzania’s overall spending will rise 2% to 33.11 trillion shillings ($14.43 billion) in 2019/2020, while borrowing 4.96 trillion shillings from the domestic market.
The government also plans to borrow 2.32 trillion shillings from external non-concessional sources, Mpango said.
East Africa’s third-largest economy is investing heavily in public infrastructure projects as it seeks to profit from its long coastline and upgrade its rickety railways and roads to serve the growing economies in east and central Africa.