Z’bar unveils 650bn/- financial plan

Mr Mzee
The Zanzibar Revolutionary Government has unveiled its 2012/2013 financial year budget showing that it will need 307.797bn- for recurrent expenses and 341.147bn/- for development.

Reading the government’s budget estimates in the House of Representatives yesterday, the minister of State in the President’s Office responsible for Finance, Economic Affairs and Development Planning, Mr Omar Yusuf Mzee, said the government targets to collect 648.944bn/- during the financial year.

He said the government plans to implement various strategies in the 2012/2013 budget aimed at boosting revenue collection.

According to minister Mzee, among the strategies include raising tax on fuel, port charges and stamp duty.

The minister told the House that revenue collected on tax increment would be directed into development projects.

He said the port charge has been proposed to be increased from Sh1,000 to Sh2,000 for passengers travelling between Zanzibar and Tanzania mainland.

The minister said passengers travelling between Unguja and Pemba will have to pay Sh1,000 as port charges. He said imported fuel will be charged 50/- per litre as tax, a move aimed at enabling the Zanzibar government to collect 3.3bn/-.

Mr Mzee said the government has proposed a 1.5 to three per cent increment on stamp duty, a move hoped to raise a total of 2.1bn/-. He said road licences would be adjusted according to the weight of motor vehicles.

He said the current tax paid on road licence of 24,000/- did not reflect on actual road usage, and as such needed to be scaled upwards.

Mr Mzee said other areas that will see their tax rates increased include hotels and restaurants.According to him, Zanzibar’s economy is projected to grow at between 6.8 per cent and 7.5 per cent during the 2012/2013 financial year.

He added that inflation was expected to go down from the current 14.7 per cent to 8.7 per cent during the period under review.
Source: The Citizen,http://www.thecitizen.co.tz, reported by By Salma Said in Zanzibar

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