Private sector wants VAT down to 16%

The Private sector has asked the government to reduce the Value Added Tax (VAT) rate from 18 per cent to 16 per cent in the 2012/2013 budget.

In its tax reform proposals submitted to the Task Force (TF) for consideration for the year 2012/13, the private sector also proposed a reduction in hotel levy rate from 20 per cent to 16 per cent. 

The Private Sector, under the Tanzania Private Sector Foundation, suggests that the government allows taxpayers who have outstanding VAT refunds to apply for other tax obligations. 

In the proposal submitted to the Parliamentary Committee on Finance and Economy last week, TPSF wants reduction of the skills and development levy rate from six to two per cent and require parastastals and other public institutions to pay the levy as well. 

Receiving the proposals, the Chairperson of the Committee Andrew Chenge said they would hand it over to the Ministry of finance and economy.  It calls for reduction of royalty rates on prawns, fish fillets and fish byproducts to harmonies the rates in East Africa.

It also asks the government to abolish service levy and refuse collection levy on telecommunication towers. 

 Other demands include imposition of additional taxes and duties on goods which are prone to massive under-invoicing and abolish destination inspection fees as the Tanzania Bureau of Standards requires pre-shipment inspection for which importers pay fees
Source: The Daily News,, reported by Orton Kiishweko

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