The Parliament Passes the Bill for the Amendment of Various Financial Laws for the Year 2022
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- 23 Sep 2022
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The Parliament of the United Republic of Tanzania has passed the Written Laws (Financial Provisions) Amendment Act, 2022, which aims to amend 6 Laws on taxes, royalties and investments.
Presenting the scholarship in parliament in Dodoma, the Minister of Finance and Planning, Hon. Dr. Mwigulu Lameck Nchemba said the aim of this Bill is to amend the Laws governing taxes and royalties by changing the rates of taxes and royalties.
He added that the Bill aims to set procedures for providing incentives to investors to encourage production for local industries that produce fertilizers and sisal bags, as well as remove the challenges in the implementation of the Investment Law in Tanzania, Chapter 38.
Hon. Nchemba mentioned the Laws proposed to be amended through the Bill as the Goods Tax Law Chapter 147, the Income Tax Law Chapter 332, the Mining Law Chapter 123, the Road and Fuel Tax Law Chapter 220 and the Value Added Tax Law Chapter 148.
"The Second Part of the Bill with articles 3 to 5 proposes to amend the Excise Tax Law, Chapter 147, where article 128 is proposed to be amended to give authority to the Minister in charge of financial affairs, after obtaining the approval of the Council of Ministers to waive taxes on products that will be used in the implementation of smart and smart investment projects that will be approved by the National Investment Committee (NISC)", explained Dr. Nchema.
He pointed out that if it is found that the exemption given to the investor has been used differently from the intended goals, the relevant exemption will be canceled and the investor will have to pay the exempted tax.
"These proposed amendments aim to harmonize the provisions of this Act with the provisions of the Tanzania Investment Act in order to improve the implementation of incentives to be provided to investors", said Hon. Nchema.
He said this section proposes to amend the Fourth Table of this Act, by increasing the excise duty on wine produced from grapes imported from abroad from 2,466.45 shillings per liter to 5,600 shillings per litre.
"The aim of the proposed amendment is to enable wine produced from grapes grown in this country to compete in the local market with wine from abroad. This situation will help ensure access to the market for grapes grown in the country", said Hon. Nchema.
Minister Nchemba said this Bill also aims to provide relief for the cost of raw materials for local producers of fertilizer products and the Government is confident that this relief provided to fertilizer producers will bring positive results in reducing the price of fertilizer for farmers, thus reducing the burden to the Government in the provision of subsidy funds on fertilisers.
He said the Bill has amended the Road Tax and Fuel Act, Chapter 220, to give the Minister the authority to waive fuel tax for smart and special smart investment projects to be approved by the National Investment Committee. Read More…
