Thursday, June 14, 2018

Five winners and five losers in Tanzania's budget proposal

 

By Alawi Masare @AMasare malawi@tz.nationmedia.com

Dar es Salaam. The government has on Thursday  proposed changes to its tax laws that will either add or reduce the financial burden for some sectors.

Winners

1.       Women who will benefit from the proposed removal of the value-added tax (VAT) on sanitary towels.

2.       Modern livestock keepers as the government proposed to remove VAT on animal food supplements to encourage modern animal rearing.

3.       Medicine producers as the government proposes abolishing VAT on medicine packaging materials to reduce cost of production and encourage local pharmaceutical industries.

4.       Companies which will benefit from the proposed corporate tax reduction from the current 30 per cent to 20 per cent in the next five years.

5.       Government institutions which will benefit from the proposed abolition of land tax.

Losers

1.       Gaming firms whose tax is supposed to increase from the current 6 per cent of gross gaming revenue to 10 per cent. Tax on slot machines will increase from Sh32,000 to Sh100,000 per machine per month.

2.       Casinos for whom the income tax rate is proposed to increase from the current 15 per cent to 18 per cent

3.       Oil importers as government proposes a customs duty rate of 25 per cent on palm oil and an increase in customs duty on semi-refined edible oil from 25 per cent to 35 per cent.

4.       Mineral water importers in which the government proposed to increase customs duty from 25 per cent to 60 per cent to protect local industries.

5.       Meat importers as the government proposed to increase customs duty on meat and edible meat offal from 25 per cent to 35 per cent. The measure aimed at encouraging local meat production and processing.

Read the whole budget ————————————> here 


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