Sh954.04 billion paid as VAT refunds
What you need to know:
- The Sh954.04 billion paid is equivalent to 431.7 percent of Sh221.01 billion target expected to be used for servicing VAT claims in 2021/22 Fiscal Year.
Dar es Salaam. The government said on Tuesday, September 13, 2022 that a total of Sh954.04 billion has been paid in Value Added Tax (VAT) refunds during the 2021/22 Fiscal Year.
The payment is equivalent to 431.7 percent of Sh221.01 billion target that was expected to be used for servicing VAT refunds claims during the said period.
The statement was issued by Deputy Minister for Finance Hamad Hassan Chande when responding to a question from Njombe Urban Constituency MP Deodatus Mwanyika.
In his principle question, Mr Mwanyika sought to know the amount spent by the government in VAT refunds in the financial year that ended in June, 2022.
In his response, Mr Chande said the payment efficiency is attributed to the government’s decision to verify payment claims through the risk based verification of VAT refunds, instead of the earlier procedure to verify all claims by 100 percent.
“The new procedure has increased the speed of verification and respective VAT refunds and therefore reduce delays due to timely verification,” he said.
Mr Chande said recorded achievement would stimulate economic growth, investment and protection to the businessmen and investors’ capital.
The Mwibara Constituency lawmaker, Mr Charles Kajege who asked the question on behalf of Mr Mwanyika sought to know the government’s plan to complete paying the outstanding dues.
In his response, Mr Chande said the remaining claims would be serviced each time verification is completed.
