Zanzibar’s budget up by 7.9pc

Unguja. The Zanzibar Finance and Planning minister Mohamed Ramia Abdiwawa tabled the Sh1.419 Trillion before the House of Representative for the 2019/20 fiscal year, saying it was up from Sh1.315 trillion as compared to the 2018/19 budget, which is equivalent to 7.9 per cent increase.

Tabling the budget at the House of Representatives on Thursday, June 20, 2019, Mr Abdiwawa said while Sh842.4 billion was set for the concurrent expenditures, Sh577.0 billion will be used for executing development projects and that budget dependence increase to 6.2 per cent from 5.7 per cent in 2018.

“The increase in the government budget was because of strengthened domestic revenue collections and increase in subvention from development partners,” he said.

He said during the 2019/20 fiscal year, the government expected to S1.419.4 trillion including Sh976.5 billion from local sources and Sh394.6 billion from development partners with Sh40 billion being loans from domestic sources and Sh8.3 billion from Donors Basket Funds (DBF).

“Of the Sh976.5 billion domestic revenue, the Zanzibar Revenue Board (ZRB) is expected to collect Sh488.5 billion and the Tanzania Revenue Authority (TRA) in the Zanzibar branch is projected to garner Sh350.2 billion. Ministries will be required to collect Sh116.8 billion and workers’ Pay As You Earn (Paye) will account for Sh21 billion,” he said.

Regarding Sh394.6 billion from development partners, he said while Sh95.5 billion accounted to subvention, Sh296.1 billion will come from foreign loans.

Speaking in the House of Representative, Mr Abdiwawa said named (14) areas that will strengthen the government revenue in 2019/20 including amending the Value Added Tax (VAT) Act and charging tax to foreigners sleeping in marine vessels.

Also, vehicles capable of carrying one and half tonnes of cargo will be subjected to stamp duty procedures, strengthening government revenue collections in ministries, departments and institutions, strengthening supervision and monitoring of revenue, redeeming taxpayer’s debts and increase time and efficiency for cargo clearance at the Zanzibar Airport.

During that time names of tax evaders will be published, build capacity to users of the Tanzania Customs Integrated System (Tancis), plug loop holes for tax evasion, mobilize citizens to demand electronic receipts for purchases made, review laws and regulations for tax exemption, abide by the international tax exemption for development projects and waiving revenue retention to government institutions.