Tabling the 2018/19 budget at the Parliament in Dodoma, Finance and Planning minister, Dr Philip Mpango, proposed several amendments to the laws in order enforce the exemptions.
Dar es Salaam. The government yesterday announced a number of tax exemptions in order to boost agricultural production and enhance its industrialization drive during the 2018/19 fiscal year.
Tabling the 2018/19 budget at the Parliament in Dodoma, Finance and Planning minister, Dr Philip Mpango, proposed several amendments to the laws in order enforce the exemptions. He said several sections of the Value Added Tax Act needed to be amended to allow tax exemptions on packaging materials for local pharmaceutical industries and on imported animal and poultry feeds additives. “The minister of Finance will also have powers to exempt tax projects funded by non-concessional loans because the current arrangement delays implementation of the projects,” he said. (The Citizen Reporter)
which include water and infrastructure development projects,” he said.
He said amendment of the laws will allow the minister exempt tax following existing agreement between the government and a financial Institution or bank which is representing another government.
“The amendment will allow VAT exemption on sanitary pads for women and girls, particularly school girls and those in the village,” he said adding.
“It is the government’s expectations that sanitary pad producers and sellers will make them available at affordable prices.”
He said the Income Tax Act will also be amended to exempt withholding tax on government loans interests provided through banks and financial institutions to finance government projects.
According to him, the government will amend the Local Government Finance Act in order to exempt tax on produce Cess for companies and institutions paying service levy.
However, he insisted that the exemption will only apply to producers and processors aiming at adding value of the said products.
He said the East African Community Finance and Planning ministers had agreed to amend respective laws to allow exemption of import duty on rally cars and motorcycles and to provide zero common external tariffs for motor boat ambulance and motor vehicles intended to be used for transportation of tourists.
“The amendment will also exempt government agencies, and institutions from paying land rents, abolish levies imposed on the salt sub-sector, abolish produce cess imposed on salt producers by local governments,” he said.
He noted that the government had abolished inspection and clearance fees imposed on salt industry; mangrove levy charged to salt producers; fees charged for review of salt project concept paper and fees on solar salt panel.
Dr Mpango said the government has also abolished fees charged on salt mining centres, environmental impact assessment fees and application fees of working places,” he said.
He noted that fines related to fire and rescue equipment; Occupational Safety and Health Authority (OSHA) compliance license fees and consultancy fees were also abolished with effect from July 1, 2018.
