Ministry of Finance has proposed an introduction of a
new VAT rate of 10 per cent for selected VAT relieved beneficiaries.
This measure will compel all beneficiaries
enjoying special relief under the third schedule of the Value Added Tax Act to
pay VAT for their taxable supplies requirements at a reduced rate of 10 per cent
instead of 18 per cent.
The Finance Minister, Dr Mgimwa said those who
would be affected, among others, are private companies, individuals and TIC
Certificate holders except those who are enjoying exemptions under the existing
agreements.
Furthermore, it will affect Non Governmental Organizations
(NGOs) except those which are providing donations such as food supplies and
medicaments to children and orphanage care centers and schools.
Also, Dr Mgimwa asked the house to approve, amending
item 19 of the second schedule to the VAT Act in order to include “Electronic
Fiscal Devices” in the list of exempt items.
“The measure intends to make the product
affordable to the business community and encourage its use for the improvement
of compliance,” the finance minister said.
A report dubbed one billion question: How Can Tanzania Stop
Losing So Much Tax Revenue, estimates that Tanzania
one of the poorest countries in the world is losing around 1 billion US dollars
(1.6tr/-) in tax revenue annually mostly
through tax evasion, capital flight and tax incentives.
Also, the minister wants to exempt VAT on various
equipments (Compressed Natural Gas and Piped Natural Gas) that will be used for
storage, transportation, and distribution of natural gas.
This measure is intended to promote the usage of
natural gas in various sectors of the economy including motor vehicles,
domestic and industrial use.
“The measure is also expected to preserve forests,
reduce environmental degradation and encourage production of gas cookers in the
country,’ Dr Mgimwa said.
Source: tzexchange.blogspot.com
Hi,where should i get that new act?please let me know
ReplyDeleteam working on a private organization which deals with helping poor people in the villages,now they are complaining that they have been told to pay for tax while they are helping people,they say the Government should not do that because they are just providing aids,how comes the government need them to pay for tax?
ReplyDeleteSo they were in need of the new law first so that they can read it and start making a follow up,please help me cause they gave me that work,thanx much