ISSN 0856 - 034X

Finance Act

THE UNITED REPUBLIC OF TANZANIA

No. 4 15th June, 2022

SPECIAL BILL SUPPLEMENT

To The Gazette Of The United Republic Of Tanzania No. 4 Vol. 103 Dated 15th June, 2022
Printed By The Government Printer, Dodoma By Order Of Government

THE FINANCE BILL, 2022

ARRANGEMENT OF PARTS

Part Title

PART I PRELIMINARY PROVISIONS

PART II AMENDMENT OF THE ANIMAL DISEASES ACT,

(CAP. 156)

PART III AMENDMENT OF THE BANK OF TANZANIA ACT,

(CAP. 197)

PART IV AMENDMENT OF THE BUSINESS NAMES

(REGISTRATION) ACT, (CAP. 213)

PART V AMENDMENT OF THE CASHEWNUT INDUSTRY

ACT, (CAP. 203)

PART VI AMENDMENT OF THE COMPANIES ACT, (CAP.

212)

PART VII AMENDMENT OF THE COPYRIGHT AND

NEIGHBOURING RIGTHS ACT, (CAP. 218)

PART VIII AMENDMENT OF THE DAIRY INDUSTRY ACT,

(CAP. 262)

PART IX AMENDMENT OF THE EXCISE (MANAGEMENT

AND TARIFF) ACT, (CAP. 147)

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 Finance Act

PART X AMENDMENT OF THE ELECTRONIC AND POSTAL

COMMUNICATIONS ACT, (CAP. 306)

PART XI AMENDMENT OF THE ENERGY AND WATER

UTILITIES REGULATORY AUTHORITY ACT, (CAP.
414)

PART XII AMENDMENT OF THE EXPORT TAX ACT, (CAP.

196)

PART XIII AMENDMENT OF THE FERTILISERS ACT, (CAP.

378)

PART XIV AMENDMENT OF THE FOREIGN VEHICLES

TRANSIT CHARGES ACT, (CAP. 84)

PART XV AMENDMENT OF THE GAMING ACT, (CAP. 41)

PART XVI AMENDMENT OF THE GOVERNMENT LOANS,

GUARANTEES AND GRANTS ACT, (CAP. 134)

PART XVII AMENDMENT OF THE HIDES, SKINS AND

LEATHER TRADE ACT, (CAP. 120)

PART XVIII AMENDMENT OF THE INCOME TAX ACT, (CAP.

332)

PART XIX AMENDMENT OF THE INSURANCE ACT, (CAP.

394)

PART XX AMENDMENT OF THE LAND ACT, (CAP. 113)

PART XXI AMENDMENT OF THE LAND TRANSPORT

REGULATORY AUTHORITY ACT, (CAP. 413)

PART XXII AMENDMENT OF THE LOCAL GOVERNMENT

FINANCE ACT, (CAP. 290)

PART XXIII AMENDMENT OF THE LOCAL GOVERNMENT

(DISTRICT AUTHORITIES) ACT, (CAP. 287)

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 Finance Act

PART XXIV AMENDMENT OF THE LOCAL GOVERNMENT

(URBAN AUTHORITIES) ACT, (CAP. 288)

PART XXV AMENDMENT OF THE MINING ACT, (CAP. 123)

PART XXVI AMENDMENT OF THE NATIONAL PAYMENT

SYSTEMS ACT, (CAP. 437)

PART XXVII AMENDMENT OF THE OCCUPATIONAL SAFETY

AND HEALTH ACT, (CAP. 297)

PART XXVIII AMENDMENT OF THE PORTS ACT, (CAP. 166)

PART XXIX AMENDMENT OF THE TANZANIA INVESTMENT

ACT, (CAP. 38)

PART XXX AMENDMENT OF THE TANZANIA

COMMUNICATIONS REGULATORY AUTHORITY
ACT, (CAP. 172)

PART XXXI AMENDMENT OF THE TANZANIA REVENUE

AUTHORITY ACT, (CAP. 399)

PART XXXII AMENDMENT OF THE TANZANIA SHIPPING

AGENCIES ACT, (CAP. 415)
PART XXXIII AMENDMENT OF THE TAX ADMINISTRATION
ACT, (CAP. 438)
PART XXXIV AMENDMENT OF THE TAX REVENUE APPEALS
ACT, (CAP. 408)
PART XXXV AMENDMENT OF THE TOURISM ACT, (CAP. 65)

PART XXXVI AMENDMENT OF THE TRUSTEES

INCORPORATION ACT, (CAP. 318)

PART XXXVII AMENDMENT OF THE VALUE ADDED TAX ACT,

(CAP. 148)

PART XXXVIII AMENDMENT OF THE VOCATIONAL EDUCATION

AND TRAINING ACT, (CAP. 82)
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 Finance Act

______

NOTICE
______

This Bill to be submitted to the National Assembly is published for general

information to the public with a statement of its objects and reasons.

Dodoma, HUSSEIN A. KATTANGA

15th June, 2022 Secretary to the Cabinet

A BILL
for

An Act to impose and alter certain taxes, duties, levies, fees and to
amend certain written laws relating to the collection and
management of public revenues.

ENACTED by the Parliament of the United Republic of Tanzania.

PART I
PRELIMINARY PROVISIONS

Short title 1. This Act may be cited as the Finance Act, 2022.

Commence 2. This Act shall come into operation on the 1st

ment
day of July, 2022.

PART II
AMENDMENT OF THE ANIMAL DISEASES ACT,
(CAP. 156)

Construction 3. This Part shall be read as one with the Animal

Cap. 156
Diseases Act, hereinafter referred to as the “principal Act.”

Amendment 4. The principal Act is amended in section 3(2),

of section 3
by-
(a) deleting paragraph (g);

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 Finance Act

(b) renaming paragraphs (h) and (i) as paragraphs (g)

and (h) respectively.

PART III
AMENDMENT OF THE BANK OF TANZANIA ACT,
(CAP. 197)

Construction 5. This Part shall be read as one with the Bank of

Cap. 197
Tanzania Act, hereinafter referred to as the “principal Act.”

Amendment 6. The principal Act is amended in section 35 by

of section 35
deleting subsection (2) and substituting for it the following:
“(2) The total amount outstanding at
any time of advances made by the Bank
under this section and section 34 shall not
exceed eighteen percentum of the budgeted
domestic revenues of each of Governments
as defined in section 36.”.

Amendment 7. The principal Act is amended in section 36 by

of section 36
deleting subsection (1) and substituting for it the following:
“(1) For the purposes of section 35,
the budgeted domestic revenues of the
Governments shall be the approved domestic
revenue estimates of the current year.”.
PART IV
AMENDMENT OF THE BUSINESS NAMES (REGISTRATION)
ACT,
(CAP. 213)

Construction 8. This Part shall be read as one with the Business

Cap. 213
Names (Registration) Act, hereinafter referred to as the
“principal Act”.

Amendment 9. The principal Act is amended in section 2 by

of section 2
adding in the appropriate alphabetical order the following
new definition:
““beneficial owner” has the meaning ascribed to it
Cap.
423 under the Anti-Money Laundering Act;”.
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 Finance Act

Amendment 10. The principal Act is amended in section 4 by

of section 4
deleting paragraph (a) and substituting for it the following:
“(a) every firm having a place of business in
Tanzania;”.
Amendment 11. The principal Act is amended in section 6(1) by
of section 6
inserting the words “and beneficial owners of the
partnership” immediately after the word “partners”
appearing in paragraph (d).

Amendment 12. The principal Act is amended in section 13, by-

of section 13
(a) designating the content of section 13 as subsection
(1); and
(b) adding immediately after subsection (1) as designated
the following:
“(2) A person who-
(a) fails to provide information to the
Registrar regarding change in
beneficial ownership of the
partnership; or
(b) fails to provide the Registrar with
statement of particulars
containing information on the
beneficial owners of the
partnership,
commits an offence and shall, upon
conviction, be liable to a fine of not less than
one million shillings but not exceeding five
million shillings.”.

PART V
AMENDMENT OF THE CASHEWNUT INDUSTRY ACT,
(CAP. 203)

Construction 13. This Part shall be read as one with the

Cap. 203
Cashewnut Industry Act, hereinafter referred to as the
“principal Act”.
Amendment 14. The principal Act is amended in section 17A by
of section
17A deleting subsection (2) and substituting for it the following:

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 Finance Act

“(2) The total amount of export levy

collected under subsection (1) shall be
distributed in the following manner:
(a) 50% shall be remitted to the
Ministry responsible for
agriculture for agricultural input
subsidy and the Agriculture
Development Fund; and
(b) 50% shall be remitted to the
Consolidated Fund.”.

PART VI
AMENDMENT OF THE COMPANIES ACT,
(CAP. 212)

Construction 15. This Part shall be read as one with the

Cap. 212
Companies Act, hereinafter referred to as the “principal
Act”.

Amendment 16. The principal Act is amended in section 2 by

of section 2
deleting the definition of the term “beneficial owner” and
substituting for it the following:
““beneficial owner” has the meaning ascribed to it
Cap. 423
under the Anti-Money Laundering Act;”.

Amendment 17. The principal Act is amended in section 115 by

of section
115 deleting subsection (5) and substituting for it the following:
“(5) Where a company fails to
comply with subsection (1), (2), (4) or (6),
the company and every officer of the
company who is in default shall be liable to
a penalty of one hundred thousand shillings
and an addition of ten thousand shillings for
every day during which the default
continues.”.

Amendment 18. The principal Act is amended in section 116(4)

of section
116 by deleting the words “default fine” and substituting for
them the words “penalty of one hundred thousand shillings

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 Finance Act

and an addition of ten thousand shillings for every day

during which the default continues”.

Amendment 19. The principal Act is amended in section 128 by

of section
128 deleting subsection (3) and substituting for it the following:
“(3) Where a company fails to
deliver an annual return in accordance with
this Chapter within twenty-eight days of the
return date, the company and every officer of
the company who is in default shall be liable
to a penalty of one hundred thousand
shillings and an addition of ten thousand
shillings for every day during which the
default continues.
(4) For the purpose of this section,
the expression “officer” shall include any
person in accordance with whose directions
or instructions the directors of the company
are accustomed to act.”.

Amendment 20. The principal Act is amended in section 393 by

of section
393 adding a proviso immediately after subsection (2) as
follows:
“Provided that, the liquidator shall be
responsible for maintaining accounting
records and underlying documentations
relating to the dissolution of a company for
a period of at least five years from the date
of dissolution.”.

PART VII
AMENDMENT OF THE COPYRIGHT AND NEIGHBOURING
RIGTHS ACT,
(CAP. 218)

Construction 21. This Part shall be read as one with the Copyright
Cap. 370 and Neighbouring Rights Act, hereinafter referred to as the
“principal Act”.

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 Finance Act

General 22. The principal Act is amended generally by

amendment
deleting the words “Society” and “Society’s” and
substituting for them the words “Office” and “Office’s”
respectively.

Amendment 23. The principal Act is amended in section 4 by

of section 4
inserting in their appropriate alphabetical order the
following definition:
““collective management” means the
exercise of copyright and related
rights by organisations acting in the
interest and on behalf of the owners
of rights;
“collective management organisation”
means an organisation or body
exercising copyright or related rights
on behalf of the owners of rights,
whose main object is to negotiate for
the collection and distribution of
royalties and the granting of licenses
in respect of copyright works or
performer’s rights in return of an
administrative fee;”.

Amendment 24. The principal Act is amended in section 46 by

of section 46
deleting the marginal note and substituting for it the
following:
“Administration of copyright and
neighbouring rights”.

Repeal and 25. The principal Act is amended by repealing

replacement
of section 47 and replacing for it the following-
section 47
“Functio 47. The functions of the Copyright
ns of Office shall be to-
Office
(a) promote and protect the interest
of holders of copyright and
neighbouring rights in the
administration of copyright;
(b) maintain registers of works,
productions and associations of
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 Finance Act

authors, performers,
translators, producers of sound
recordings, broadcasters and
publishers;
(c) search for, identify and publish
the rights of owners;
(d) collect and distribute royalties
in respect of copyright works or
performers rights in areas
where collective management
organisations do not operate;
(e) print, publish, issue or circulate
any information, report,
periodical, books, pamphlet,
leaflet or any other material
relating to copyright and rights
of performers, producers of
sound recordings and
broadcasters;
(f) supervise and issue licenses to
the collective management
organisations to administer the
rights of their members;
(g) give assistance in establishing a
collecting organisation for any
class of copyright owners;
(h) deal with issues of anti-piracy;
and
(i) advise the Minister on all
matters relating to copyright.”.
Amendment 26. The principal Act is amended in section 48, by-
of section 48
(a) deleting paragraph (a) and substituting for it the
following:
“(a) to approve the minimum rates of royalties to
be levied in respect of uses to be made of
works licensed by it;”; and
(b) deleting the word “registering” appearing in
paragraph (b) and substituting for it the word
“licensing”.

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 Finance Act

Addition of 27. The principal Act is amended by adding

section 48A
immediately after section 48 the following:
“Impositi 48A.-(1) There is imposed a
on of copyright levy at a rate of 1.5 percent to be
copyright
levy charged on the value of blank material,
apparatus, device or equipment used or
capable of being used to copy protected
work prescribed under the Act.
(2) The Minister shall, upon
consultation with the Minister responsible
for finance, make regulations prescribing
the manner and modality under which the
levy shall be collected and accounted for.”.

Addition of 28. The principal Act is amended by adding

Part VIA
immediately after Part VI the following new Part:
“PART VIA
COLLECTIVE MANAGEMENT OF
COPYRIGHT

Licensing 52A.-(1) A collective management

of
collective organisation shall not operate in Tanzania
manageme without a licence issued by the Office.
nt
organisati
ons
(2) The Office shall not license a
collective management organisation in
respect of the same bundle of rights and
category of works if there exists another
organisation that has already been licensed
under this Act.
(3) A person who operates as a
collecting organisation without a licence
commits an offence and shall, upon
conviction, be liable to a fine of not less
than ten million shillings but not exceeding
twenty million shillings.

Functions 52B. The functions of the collective

of
management organisations shall be to-

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 Finance Act

collective (a) promote and encourage

manageme
nt creativity in the artistic, literary
organisati and scientific fields in
on Tanzania;
(b) promote and carry out public
awareness on copyright and
neighbouring rights;
(c) pay the royalties to its members
who are the appropriate
beneficiaries;
(d) charge fees as approved by the
Office to the users of copyright
and neighbouring rights;
(e) enter into reciprocal
agreements with foreign
societies or other bodies of
authors or neighbouring rights
owners, in collaboration with
the relevant authorities, in
respect of their members’
works;
(f) foster harmony and
understanding between its
members with the users of their
works for the purpose of
protecting their economic
rights;
(g) provide its members or other
persons in need of it, with
information on all matters
relating to copyright and
neighbouring rights and to give
advice and keep its members
informed about their rights and
interests;
(h) act as an agent for its members
in relation to their copyright
and neighbouring rights
interests; and
(i) do any act necessary in relation
to the copyright and
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 Finance Act

neighbouring rights and

interests of its members.

Condition 52C. The Office shall license a

s for
issuance collective management organisation
of licence where-
(a) it is satisfied that the collective
management organisation is
capable of promoting its
members’ interests and of
discharging its functions and
objectives;
(b) it consists of at least thirty
members;
(c) the organisation is incorporated
Cap. 212
under the Companies Act.

Submissi 53D.-(1) A collective management

on of
financial organisation shall, as soon as reasonably
year practicable after the end of each financial
report to year, submit to the Office-
Office
(a) a report of its operations during
that year; and
(b) a copy of its audited accounts in
respect of that year.
(2) This section shall apply without
prejudice to the obligations of a collective
management organisation under the
provisions of the Companies Act or any
other written law.

Immunity 54E. No matter or thing done by

any member of the Board or an employee
of the Office shall, if done bonafide in the
execution or purported execution of the
functions conferred upon that member or
employee by this Act, render the member
or employee personally liable for that
matter or thing.

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 Finance Act

Appeal 54F.-(1) A person who is aggrieved

by any decision or act of the collective
management organisation may, within
thirty days from the date of the decision or
act, appeal to the Office.
(2) Any person aggrieved by the act
or any decision made by the Office may,
within thirty days from the date of the
decision, appeal to the Minister.

Collective 54G. The Minister may, for the

management
organisation purpose of this Part, make regulations
regulations prescribing-
(a) procedure for application,
issuance and cancellation of
licence; and
(b) procedure to be complied by
collective management
organisations in making rules
for collection and distribution
of royalties.”.

PART VIII
AMENDMENT OF THE DAIRY INDUSTRY ACT,
(CAP. 262)

Construction 29. This Part shall be read as one with the Dairy
Cap. 262
Industry Act, hereinafter referred to as the “principal Act”.

Amendment 30. The principal Act is amended in section 10(s)

of section 10
by deleting the words “Tanzania Food, Drugs and
Cosmetics Authority” and substituting for them the words
“Tanzania Bureau of Standards”.

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 Finance Act

PART IX
AMENDMENT OF THE EXCISE (MANAGEMENT AND TARIFF)
ACT,
(CAP. 147)

Construction 31. This Part shall be read as one with the Excise
Cap. 147
(Management and Tariff) Act, hereinafter referred to as the
“principal Act”.

Amendment 32. The principal Act is amended in section 16 by

of section 16
deleting subsection (3).

Amendment 33. The principal Act is amended in section 18 by

of section 18
deleting subsection (5).

Amendment 34. The principal Act is amended in section 124 by

of section
124 deleting the words “cable television network or cable”
appearing in subsection (5) and substituting for them the
words “cable, terrestrial, satellite or other technology”.

Amendment 35. The principal Act is amended in section 125(1)

of section
125 by deleting paragraph (e) and substituting for it the
following:
“(e) any pay-to-view cable, terrestrial,
satellite or other technology service
providers when the service is
supplied.”.

Amendment 36. The principal Act is amended in the Fourth

of Fourth
Schedule Schedule, by-
(a) adding immediately below Heading 05.01 the
following:
“
Heading H.S. Code Description Unit Old Rate New
No. Rate
17.04 Sugar confectionary
(including white
chocolate), not
containing cocoa.
1704.10.0 - chewing gum,
0 whether or not
sugar-coated

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 Finance Act

Locally produced kg Nil Tshs

500.00
Imported kg Nil Tshs
700.00

1704.90.0 - Other
0
locally produced kg Nil Tshs
500.00
Imported kg Nil Tshs
700.00
18.06 Chocolate and other
food preparations
containing cocoa
1806.31.0 -- filled, Chocolate
0 in divided bars etc
filled with cocoa and
sugar preparation
locally produced kg Nil Tshs
500.00
Imported kg Nil Tshs
700.00
1806.32.0 - not filled
0
locally produced kg Nil Tshs
500.00
Imported kg Nil Tshs
700.00
1806.90.0 -Other
0
locally produced kg Nil Tshs
500.00
Imported kg Nil Tshs
700.00
19.05 Bread, pastry,
cakes, biscuits and
other bakers’ wares,
whether or not
containing cocoa;
communion wafers,
empty cachets of a
kind suitable for
pharmaceutical use,
sealing wafers, rice
paper and similar
products.
1905.31.0 --Sweet biscuits
0
locally produced kg Nil Tshs
500.00
Imported kg Nil Tshs
700.00
”
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 Finance Act

(b) adding the words “except those solely used by

exporters of horticultural products” immediately
after the word “plastics” appearing at the end of
the description of Heading 39.23; and
(c) inserting immediately before Heading 85.23 the
following:
“
Headin H.S. Description Unit Old New
g Code No. Rate Rate
85.07 Electric accumulators,
including separators
thereof, whether or not
rectangular (including)
square)
8507.10. Locally produced u Nil 5%
00
Imported u Nil 5%
8507.20. - other lead-acid
00 accumulators
Locally produced u Nil 5%
Imported u Nil 5%
”
PART X
AMENDMENT OF THE ELECTRONIC AND POSTAL
COMMUNICATIONS ACT,
(CAP. 306)

Construction 37. This Part shall be read as one with the Electronic
Cap. 306 and Postal Communications Act, hereinafter referred to as
the “principal Act”.

Addition of 38. The principal Act is amended by adding

section 164B
immediately after section 164A the following:
“Impositi 164B.-(1) There is imposed a fee to
on of fees be charged on television decoder
on
television subscription paid at a rate ranging from
decoder 1,000 to 3,000 shillings.
subscripti (2) The Minister shall, upon
on
consultation with the Minister responsible
for finance, make regulations prescribing
the manner and modality under which the
fee shall be collected and accounted for.”.

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 Finance Act

PART XI
AMENDMENT OF THE ENERGY AND WATER UTILITIES
REGULATORY AUTHORITY ACT,
(CAP. 414)

Construction 39. This Part shall be read as one with the

Cap. 414
Energy and Water Utilities Regulatory Authority Act,
hereinafter referred to as the “principal Act”.

Amendment of 40. The principal Act is amended in section

section 7
7(1)(b), by-
(a) deleting subparagraphs (ii) and (iii); and
(b) renaming subparagraphs (iv) and (v) as
paragraphs (ii) and (iii) respectively.

PART XII
AMENDMENT OF THE EXPORT TAX ACT,
(CAP. 196)

Construction 41. This Part shall be read as one with the

Cap. 196
Export Tax Act, hereinafter referred to as the
“principal Act”.

Amendment of 42. The principal Act is amended in the

Schedule
Schedule by adding immediately after item 2 the
following:
“
No. Item Rate
3. Copper waste or Thirty percentum of
scrap metals of the value of the
Headings 72.04 and commodity (f.o.b) or
74.04 150 USD per tonne,
whichever is greater.

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 Finance Act

PART XIII
AMENDMENT OF THE FERTILISERS ACT,
(CAP. 378)

Construction 43. This Part shall be read as one with the

Cap. 378
Fertilisers Act, hereinafter referred to as the “principal
Act”.

Amendment of 44. The principal Act is amended in section 28

section 28
by deleting the phrase “and conform to the standards
prescribed in the regulations”.

PART XIV
AMENDMENT OF THE FOREIGN VEHICLES TRANSIT
CHARGES ACT,
(CAP. 84)

Construction 45. This Part shall be read as one with the

Cap. 84
Foreign Vehicles Transit Charges Act, hereinafter
referred to as the “principal Act”.

Amendment of 46. The principal Act is amended in section 3

section 3
by adding a proviso to subsection (2) as follows:
“Provided that, such charge
shall be charged solely on a round trip
to a destination within Mainland
Tanzania.”.

Amendment of 47. The principal Act is amended in the

Schedule
Schedule by deleting the words “USD 16” appearing
in the third column of item 2 and substituting for them
the words “USD 10”.

PART XV
AMENDMENT OF THE GAMING ACT,
(CAP. 41)

Construction 48. This Part shall be read as one with the

Cap. 41
Gaming Act, hereinafter referred to as “the principal
Act”.

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 Finance Act

Amendment of 49. The principal Act is amended in section 3-

section 3
(a) in the definition of the term “gaming activities”
by inserting the words “including internet or
virtual games” between the words “any game”
and the word “played”; and
(b) by adding in their appropriate alphabetical order
the following new definitions:
““winning” means the receipt of an
amount of payment or other
consideration including a prize,
award or reward given by way
of money, assets, goods or
property in kind to a person
after having participated
directly or indirectly in a
gaming activity recognised
under this Act and includes a
prize award or reward of money
given prior to finalisation of the
gaming activity;
“withholding agent” means a person
required to withhold gaming
tax on winning from a payment
under this Act and remit the
amount withheld to the
Commissioner;”.

Amendment of 50. The principal Act is amended in section

section 31
31-
(a) in subsection (2), by-
(i) inserting the words “gaming
activity excluding virtual or
internet gaming conducted in” at
the beginning of paragraph (a);
(ii) deleting paragraph (b) and
substituting for it the following:
“(b) internet gaming or virtual
games under internet
casino licence shall be
paid at the rate of twenty
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 Finance Act

five percent of the

monthly gross gaming
revenue;
(c) gaming activities which are
not mentioned in the
Schedule or under
paragraph (a) or (b) shall
paid at a rate of ten percent
of the monthly gross
gaming revenue on or
before the seventh day of
the following month from
the month of payment of
the winning prize;”; and
(iii) renaming paragraph (c) as
paragraph (d);
(b) adding immediately after subsection (5)
the following:
Cap. 438 “(6) The provisions of the
Tax Administration Act relating to
the maintenance of documents, tax
liability, collection and recovery of
tax, imposition of interest, tax
enforcement, objection and appeal
shall apply with respect to gaming
tax under this Act.”.

Amendment of 51. The principal Act is amended in section

section 31A
31A by deleting subsection (4) and substituting for it
the following:
“(4) For purposes of collecting
gaming tax under subsection (1), the licencee
of a gaming activity in which the wining is
made and paid for, shall be a withholding
agent of a person entitled to the winning
prize and responsible for-
(a) issuing notifications necessary
for collection of gaming tax on
winning prize and withholding
the gaming tax at the time of
payment of winning prize;
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 Finance Act

(b) remitting the withheld gaming

tax to the Commissioner
electronically on or before the
seventh day of the following
month from the month of
payment of the winning prize;
and
(c) submitting return or certificate of
payment of the withheld gaming
tax to the Commissioner not later
than fifteen days following the
end of each calendar month.
(5) The Commissioner may, subject
to subsection (4) and in consultation with the
Board, issue guidelines on the mode of
reporting and collection of gaming tax on
winning under this Act.
(6) A licencee or withholding agent
who fails to withhold gaming tax under this
Act shall be responsible to pay the amount of
gaming tax on winning not withheld together
with the interest and penalty as provided for
Cap. 438 under the Tax Administration Act.”.

PART XVI
AMENDMENT OF THE GOVERNMENT LOANS, GUARANTEES
AND GRANTS ACT,
(CAP. 134)

Construction 52. This Part shall be read as one with the

Cap. 134
Government Loans, Guarantees and Grants Act,
hereinafter referred to as the “principal Act”.

Amendment of 53. The principal Act is amended in section 3

section 3
by deleting the proviso to subsection (1) and
substituting for it the following:
“Provided that, the authority
conferred upon the Minister by this
section shall be exercised in such a
manner that the borrowing does not
exceed the sustainability threshold
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 Finance Act

indicators from debt sustainability

analysis conducted on annual basis or
at any other period as the Minister may
deem appropriate.”.

Amendment of 54. The principal Act is amended in section

section 19
19, by-
(a) deleting the words “Commissioner for Policy
Analysis” appearing in subsection (1) and
substituting for them the words “Commissioner
responsible for Debt Management”;
(b) by deleting subsection (3) and substituting for it
the following:
“(3) Members of the technical
committee shall be-
(a) heads of unit involved in debt
management from the respective
institutions as specified under
section 18 of this Act;
(b) head of the institution or division
responsible for national planning in
the Ministry responsible for
finance;
(c) Commissioner for policy analysis
in the Ministry responsible for
finance;
(d) head of institution or division
responsible for public and private
partnership; and
(e) Treasury Registrar.”.

Repeal and 55. The principal Act is amended by repealing

replacement of
section 20 section 20 and substituting for it the following:
“Seretariat 20. The department
responsible for debt management
within the Ministry shall, in such
manner as may be provided for in the
regulations, constitute the National
Committee Secretariat.”.

23
 Finance Act

PART XVII
AMENDMENT OF THE HIDES, SKINS AND LEATHER TRADE
ACT,
(CAP. 120)

Construction 56. This Part shall be read as one with the

Cap. 120
Hides, Skins and Leather Trade Act, hereinafter
referred to as the “principal Act”.

Amendment of 57. The principal Act is amended in section 3-

section 3
(a) in the interpretation of the term “hide” by
adding the words “but does not include
trophy as defined in the Wildlife
Cap. 283 Conservation Act” immediately after the
word “camels”.
(b) in the interpretation of the term “skin” by
adding the words “but does not include
trophy as defined in the Wildlife
Cap. 283 Conservation Act” immediately after the
word “calves”.

PART XVIII
AMENDMENT OF THE INCOME TAX ACT,
(CAP. 332)

Construction 58. This Part shall be read as one with the

Cap. 332
Income Tax Act, hereinafter referred to as the
“principal Act.”

Amendment of 59. The principal Act is amended in section 3-

section 3
(a) in the definition of the term “business”, by-
(i) adding immediately after
paragraph (a) the following:
“(b) a transaction or activity
carried out through the
internet or an electronic
means including an
electronic service or
transaction conducted in
24
 Finance Act

the digital market place

regardless of the manner in
which such transaction is
carried out;”;
(ii) renumbering paragraph (b) as
paragraph (c);
(b) by adding in the appropriate alphabetical order
the following definitions:
““digital market place” means a platform
which enables direct interaction
between buyers and sellers of
goods and services through
electronic means;
“electronic service” has the meaning
Cap. 148
ascribed to it under section 51 of
the Value Added Tax Act;”.

Amendment of 60. The principal Act is amended in section

section 4
4(5) by adding the words “paragraph 2(4) or paragraph
2(5)” immediately after the words “paragraph 2(3)
appearing in subsection (5).

Amendment of 61. The principal Act is amended in section

section 10
10(3)(b), by-
(a) deleting the word “and” appearing at the end of
subparagraph (i);
(b) deleting a comma appearing at the end of
subparagraph (ii) and substituting for it a semi-
colon and the word “and”; and
(c) adding immediately after subparagraph (ii) the
following:
“(iii) for a special strategic investment
approved by the National Investment
Cap. 38 Steering Committee under the
Tanzania Investment Act,”.

Amendment of 62. The principal Act is amended in section

section 32
32, by-
(a) adding immediately after subsection (6) the
following:

25
 Finance Act

“(7) For the purpose of this

section, where an alternative financing
arrangement approved by the Bank of
Tanzania is payable as cost plus
margin, the margin shall be treated in
the same manner as interest.”;
(b) renumbering subsection (7) as subsection (8).

Amendment of 63. The principal Act is amended in section

section 66
66(4) by adding the words “whether physically or
through any electronic means” immediately after the
words “United Republic” appearing in paragraph (b).

Amendment of 64. The principal Act is amended in section

section 69
69, by-
(a) adding the words “including payment made for
harnessing, generating or utilising land, air or
water natural resources for generation of power
or anything of value whether the respective
natural resource is located alongside the border
or within the country” immediately after the
word “waters” appearing at the end of
paragraph (c);
(b) adding immediately after paragraph (l) the
following:
“(m) payments made by an individual
other than payments made in
conducting a business in respect
of a service rendered by a non-
resident through a digital market
place”.

Amendment of 65. The principal Act is amended in section 79

section 79
by adding immediately after paragraph (c) the
following:
“(d) in the case of income tax payable by an
individual under paragraph 2(4) of the
First Schedule, at the time of selling
minerals at Mineral and Gem Houses
or buying stations designated by the
Cap. 123 Mining Commission under the Mining
26
 Finance Act

Act, whereby the Mining Commission

shall collect and remit the tax to the
Commissioner General.”.

Amendment of 66. The principal Act is amended in section

section 82
82(2), by-
(a) deleting paragraph (a);
(b) renaming paragraphs (b) to (e) as paragraphs (a)
to (d) respectively; and
(c) adding immediately after paragraph (d) as
renamed the following:
“(e) interest paid to a holder of
corporate or municipal bonds
issued and listed at the Dar es
Salaam Stock Exchange with
effect from 1st July, 2022.”.

Amendment of 67. The principal Act is amended in section

section 86
86(1), by-
(a) deleting the semi-colon and the word “and”
appearing at the end of paragraph (f);
(b) deleting paragraph (g).

Addition of 68. The principal Act is amended by adding

sections 90A and
90B immediately after section 90 the following:
“Tax 90A-(1) Where a non-
payment on resident person receives a
income
realised payment that has a source in the
through United Republic from an
digital individual, other than a payment
market place
made in the course of conducting
business, in respect of services
rendered through a digital market
place, such person shall pay
income tax for payments received
in a calendar month by way of
single instalment equal to two
percent of the gross payment.
(2) A person referred to
under subsection (1) shall be

27
 Finance Act

liable to pay income tax by filing

a return to the Commissioner on
or before the seventh day of the
month following the month to
which the payment relates.
(3) The Minister may, by
regulations, prescribe procedures
for assessing and collecting
income tax or giving effect to the
provisions of this section.
(4) For the purpose of
subsection (1), “gross payment”
means the payment made but does
not include value added tax.
Single 90B.-(1) Where a
instalment
tax on sale wholesaler of bulk petroleum
of petroleum products sells petroleum products
products to a retailer, the wholesaler shall
charge the retailer tax equal to
twenty shillings on each litre of
the product sold and-
(a) remit the amount
collected to the
Commissioner
General not later than
seven days from the
date of the transaction;
(b) submit a return or
certificate of payment
of the tax collected to
the Commissioner
General not later than
the seventh day of the
month following the
month to which the
payment relates.
(3) A wholesaler of bulk
petroleum products who fails to
charge and remit tax to in
accordance with this section shall
28
 Finance Act

be liable to pay the amount of tax

Cap. 438
not charged or remitted together
with interest and penalty as
provided under sections 76 and 78
of the Tax Administration Act.
(4) The tax payable under
this section shall be the retailer’s
advance tax.”.

Amendment of 69. The principal Act is amended in section

section 92
92(b) by adding the words “or 90A” immediately after
figure “90(1)”.

Amendment of 70. The principal Act is amended in the First

First Schedule
Schedule-
(a) in paragraph 2, by-
(i) adding the words “not including
professionals, technical,
management, construction and
training services” immediately
after the word “business”
appearing in subparagraph (1)(a);
(ii) deleting the table appearing in
subparagraph (3) and substituting
for it the following:

“
TURNOVER TAX PAYABLE TAX PAYABLE
WHERE WHERE
SECTION 35 OF SECTION 35 OF
TAX TAX
ADMINISTRATI ADMINISTRATI
ON ACT IS NOT ON ACT IS
COMPLIED COMPLIED
WITH WITH
Where turnover does NIL NIL
not exceed Tshs.
4,000,000/=
Where turnover Tshs. 100,000/= 3% of turnover in
exceeds Tshs. Tshs. excess of Tshs.
4,000,000/= but does 4,000,000/=
not exceed Tshs.
7,000,000/=
Where turnover Tshs. 250,000/= Tshs. 90,000/=
exceeds Tshs. plus 3% of

29
 Finance Act

7,000,000/= but does turnover in excess

not exceed Tshs. of Tshs.
11,000,000/= 7,000,000/=
Turnover of Tshs. 3.5% of turnover
11,000,001/= but does
not exceed Tshs.
100,000,000/=
(iii) adding immediately after
subparagraph (3) the following:
“(4) Notwithstanding
the provisions of paragraph
2(3), an individual who meets
the conditions under
subparagraphs (1) and (2) and
is engaged in small scale
mining operations but does not
have regular income shall pay
income tax at the rate of two
percent of the sale value of
minerals.
(5) Notwithstanding the
provisions of subparagraphs (3)
and (4), an individual who
meets conditions prescribed
under subparagraphs (1) and
(2) and is engaged in-
(a) long distance
transportation of
passengers with a
bus of carrying
capacity of forty
passengers and
above; or
(b) long distance
transportation of
goods with lorry
having axles above
three,
shall pay income tax at a rate of
three million five hundred
thousand shillings per annum.

30
 Finance Act

(6) For the purpose of

subparagraph (5), “long
distance transportation” means
carriage of passengers or goods
from one region to another in
the United Republic or outside
of the Republic.”;
(b) in paragraph 4(b), by-
(i) adding immediately after
subparagraph (ii) the following:
“(iii) in the case of royalty
referred to in paragraph
(c) of the definition of the
term “royalty” - ten
percent for a non-resident
and fifteen percent for a
resident;”; and
(ii) renumbering subparagraph (iii) as
subparagraph (iv).

Amendment of 71. The principal Act is amended in paragraph

Second Schedule
1 of the Second Schedule by adding immediately after
subparagraph (x) the following:
“(y) amount derived from gain on
realisation or transfer of mineral
rights and mineral information to
a partnership entity formed
between the Government and an
investor;
(z) amount derived from gain on
realisation or transfer of free
carried interest shares form a
partnership entity to the
Government;
(aa) amount derived from gain on
realisation or transfer of shares to
the Government through the
Treasury Registrar.”.

31
 Finance Act

PART XIX
AMENDMENT OF THE INSURANCE ACT,
(CAP. 394)

Construction 72. This Part shall be read as one with the

Cap. 394
Insurance Act, hereinafter referred to as “the principal
Act”.

Addition of 73. The principal Act is amended by adding

section 133A
immediately after section 133 the following:
“Mandato 133A.-(1) Subject to the
ry provisions of this Act and any other
insurance
written law, a person shall not import
goods or operate a public market,
commercial building, marine vessel,
ferry or pantoon without obtaining
an insurance cover.
(2) The Minister shall, by
regulations, prescribe commercial
buildings, public markets and
imported goods requiring mandatory
insurance.”.

PART XX
AMENDMENT OF THE LAND ACT,
(CAP. 113)

Construction 74. This Part shall be read as one with the

Cap. 113
Land Act, hereinafter referred to as “the principal
Act”.

Amendment of 75. The principal Act is amended in section 33

section 33
by deleting the word “six” appearing in subsection
(11) and substituting for it the word “twelve”.

32
 Finance Act

PART XXI
AMENDMENT OF THE LAND TRANSPORT REGULATORY
AUTHORITY ACT,
(CAP. 413)

Construction 76. This Part shall be read as one with the

Cap. 413 Land Transport Regulatory Authority Act, hereinafter
referred to as the “principal Act”.

Amendment of 77. The principal Act is amended in section

section 5
5(1) by deleting paragraph (c) and substituting for it
the following-
“(c) subject to sector legislation to
regulate rates and charges;”.

PART XXII
AMENDMENT OF THE LOCAL GOVERNMENT FINANCE ACT,
(CAP. 290)

Construction 78. This Part shall be read as one with the

Cap. 290
Local Government Finance Act, hereinafter referred to
as the “principal Act”.

Amendment of 79. The principal Act is amended in section

section 6
6(1) by deleting the word “ten” appearing in paragraph
(q) and substituting for it the word “five”.

Amendment of 80. The principal Act is amended in section

section 7
7(1) by deleting the words “ten percentum” appearing
in paragraph (t) and substituting for them the words
“five percentum”.

Amendment of 81. The principal Act is amended in section

section 8
8(1)(l) by deleting the word “ten” and substituting for
it the word “five”.

Amendment of 82. The principal Act is amended in section

section 16
16, by-
(a) deleting the words “corporate entities paying
service levy shall not be liable to pay produce
cess” appearing in subsection (7) and
33
 Finance Act

substituting for them the words “entities,

corporate bodies or individuals paying service
levy shall be liable to pay produce cess at the
local government authorities where agriculture
produce or other produce are purchased”; and
(b) adding immediately after subsection (7) the
following:
“(8) The Minister may make
regulations prescribing the manner of
distribution of revenues from service
levies paid by entities, corporate bodies
or individuals who carry out their
economic activities in more than one
local government authority.”.
Amendment of 83. The principal Act is amended in section
section 37A
37A by deleting subsection (2) and substituting for it
the following:
“(2) The funds set aside under
subsection (1) shall be utilised in the
following manner:
(a) five percent for financing
improvement of
entrepreneurial
infrastructure;
(b) two percent shall be
appropriated as loans to
youths;
(c) two percent shall be
appropriated as loans to
women; and
(d) one percent shall be
appropriated as loans to
persons with disability.”.

Amendment of 84. The principal Act is amended in paragraph

Schedule
1 of Schedule-
(a) by deleting the figure “5%” appearing in
subparagraph (c) and substituting for it the
figure “3%”;

34
 Finance Act

(b) in the third column, by adding immediately after

the last item the following:
“  a cess on seeds”.

PART XXIII
AMENDMENT OF THE LOCAL GOVERNMENT (DISTRICT
AUTHORITIES) ACT,
(CAP. 287)

Construction 85. This Part shall be read as one with the

Cap. 287
Local Government (District Authorities) Act,
hereinafter referred to as the “principal Act”.

Amendment of 86. The principal Act is amended in section

section 113
113 by adding immediately after subsection (2) the
following:
“(3) Each district authority
shall establish a one-stop centre for co-
coordinating, encouraging, promoting
and facilitating business within its area
of jurisdiction.”.
PART XXIV
AMENDMENT OF THE LOCAL GOVERNMENT (URBAN
AUTHORITIES) ACT,
(CAP. 288)
Construction 87. This Part shall be read as one with the
Cap. 288
Local Government (Urban Authorities) Act,
hereinafter referred to as the “principal Act”.
Amendment of 88. The principal Act is amended in section 60
section 60
by adding immediately after subsection (5) the
following:
“(6) Each urban authority shall
establish a one-stop centre for co-
coordinating, encouraging, promoting
and facilitating business within its area
of jurisdiction.”.

35
 Finance Act

PART XXV
AMENDMENT OF THE MINING ACT,
(CAP. 123)
Construction 89. This Part shall be read as one with the
Cap. 123
Mining Act, hereinafter referred to as the “principal
Act”.

Amendment of 90. The principal Act is amended in section

section 87
87(1), by-
(a) adding immediately after paragraph (c) the
following:
“(d) in the case of gold sold at refinery
centers, of four per centum;
(e) in the case of coal used as
industrial raw material, of one per
centum;”;
(b) renaming paragraphs (d) and (e) as paragraphs
(f) and (g), respectively.

PART XXVI
AMENDMENT OF THE NATIONAL PAYMENT SYSTEMS ACT,
(CAP. 437)

Construction 91. This Part shall be read as one with the

Cap. 437
National Payment Systems Act, hereinafter referred to
as the “principal Act”.

Amendment of 92. The principal Act is amended in section

section 46A
46A by deleting figure “10,000” appearing in
subsection (1) and substituting for it figure “4,000”.

PART XXVII
AMENDMENT OF THE OCCUPATIONAL SAFETY
AND HEALTH ACT,
(CAP. 297)

Construction 93. This Part shall be read as one with the

Cap. 297 Occupational Safety and Health Act, hereinafter
referred to as the “principal Act”.

36
 Finance Act

Amendment of 94. The principal Act is amended in section

section 17
17(3) by inserting the words “within seven days”
immediately before the words “upon fulfilling”.

PART XXVIII
AMENDMENT OF THE PORTS ACT,
(CAP. 166)

Construction 95. This Part shall be read as one with the

Cap. 166
Ports Act, hereinafter referred to as the “principal
Act”.

Amendment of 96. The principal Act is amended in section 67

section 67
by adding immediately after subsection (2) the
following:
“(3) The wharfage under
subsection (1) shall be collected by the
Tanzania Revenue Authority.”.

PART XXIX
AMENDMENT OF THE TANZANIA INVESTMENT ACT,
(CAP. 38)

Construction 97. This Part shall be read as one with the

Cap. 38
Tanzania Investment Act, hereinafter referred to as the
“principal Act”.

Amendment of 98. The principal Act is amended in section

section 20
20(8) by deleting the words “the Minister for finance
shall confer such additional fiscal incentives as
approved by the National Investment Steering
Committee under an order published in the Gazette”
and substituting for them the words “such fiscal
incentives shall be granted in accordance with the
relevant tax law”.

37
 Finance Act

PART XXX
AMENDMENT OF THE TANZANIA COMMUNICATIONS
REGULATORY AUTHORITY ACT,
(CAP. 172)

Construction 99. This Part shall be read as one with the

Cap. 172
Tanzania Communications Regulatory Authority Act,
hereinafter referred to as the “principal Act”.

Amendment of 100. The principal Act is amended in section

section 6
6(1)(b), by-
(a) deleting subparagraphs (ii) and (iii); and
(b) renaming subparagraphs (iv) and (v) as
paragraphs (ii) and (iii) respectively.

PART XXXI
AMENDMENT OF THE TANZANIA REVENUE AUTHORITY
ACT,
(CAP. 399)
Construction 101. This Part shall be read as one with the
Cap. 399
Tanzania Revenue Authority Act, hereinafter referred
to as the “principal Act”.
Amendment of 102. The principal Act is amended in section
section 10
10(1), by-
(a) deleting the words “national policy” appearing
in paragraph (b) and substituting for them the
words “fiscal policy”; and
(b) deleting the words “Zanzibar Government”
appearing in paragraph (c) and substituting for
them the words “Revolutionary Government
of Zanzibar”.
Amendment of 103. The principal Act is amended in section
section 23
23 by adding the words “self-financing operational
services” immediately after the words “consultancy
services,” appearing in subsection (2).
Amendment of 104. The principal Act is amended in
Second Schedule
paragraph 1 of the Second Schedule by adding
immediately after subparagraph (4) the following:

38
 Finance Act

“(5) A member of the Board

may attend meetings of the Board in
person or through a duly appointed
proxy.”.

PART XXXII
AMENDMENT OF THE TANZANIA SHIPPING AGENCIES ACT,
(CAP.415)
Construction 105. This Part shall be read as one with the
Cap. 415
Tanzania Shipping Agencies Act, hereinafter referred
to as the “principal Act”.

Amendment of 106. The principal Act is amended in section

section 12
12(1), by-
(a) deleting paragraphs (b) and (c); and
(b) renaming paragraphs (d) to (n) as paragraphs (b)
to (l) respectively.

PART XXXIII
AMENDMENT OF THE TAX ADMINISTRATION ACT,
(CAP. 438)

Construction 107. This Part shall be read as one with the

Cap. 348
Tax Administration Act, hereinafter referred to as the
“principal Act”.

Amendment of 108. The principal Act is amended in section

section 3
3(3) by adding the words “or any other electronic
system” immediately after the word “machine”
appearing in paragraph (a) of the definition of the term
“fiscal device”.

Amendment of 109. The principal Act is amended in section

section 22
22, by-
(a) deleting subsection (2) and substituting for it
the following:
“(2) Notwithstanding the
provision of subsection (1), the
Commissioner General shall-

39
 Finance Act

(a) register and issue Taxpayer

Identification Number to every
Tanzanian citizen aged eighteen
years or above who has been
registered and issued with a
National Identification Number
under the Registration and
Cap. 36 Identification of Persons Act;
and
(b) ensure each Taxpayer
Identification Number issued is
connected with a National
Identification Number.”;
(b) adding immediately after subsection (4) the
following:
“(5) The Taxpayer
Identification Number issued to a
person under this section shall be used
in every transaction involving sales or
purchases, whether made
electronically or manually.
(6) The provisions of
subsections (2) and (5) shall come into
operation on 1st January, 2023.”;
(c) renumbering subsection (5) to (8) as
subsection (7) to (10) respectively; and
(d) deleting the reference to subsection (5)
appearing in subsections (8) and (9) as
renumbered and substituting for it th reference
to subsection (7).

Repeal and 110. The principal Act is amended by

replacement of
section 28 repealing section 28 and replacing for it the following:
“Licensing 28.-(1) Subject to
of tax subsection (2), the Commissioner
consultants
General may licence an individual
to act as a tax consultant on behalf
of any person under a tax law for
purposes of discharging the
person’s obligation in a tax law.

40
 Finance Act

(2) The Commissioner

General shall not licence an
individual to act as a tax
consultant under a tax law unless
he is satisfied that the individual
has fulfilled the conditions
prescribed in the regulations or
licence issued by the
Commissioner.
(3) A duly licensed tax
consultant may act as an agent of
a taxpayer under any tax law
subject to conditions prescribed in
the regulations or licence.
(4) Except as otherwise
provided for under this Act, an
individual other than an employee
or manager of a person, who is not
licensed under this section, shall
not act on behalf of such person or
communicate with the
Commissioner General on pretext
of representing a person on any
matter under any tax law.”.

Addition of 111. The principal Act is amended by adding

section 37A
immediately after section 37 the following:
“Electro 37A.-(1) Every taxpayer
nic filing required to file return shall file the
of tax
returns return electronically on or before the
due date as prescribed in the specific
tax law.
(2) The Minister may
prescribe the form and manner in
which the tax return shall be filed
electronically.
(3) Notwithstanding
subsection (1), the Commissioner
General may, by notice in writing
and under special circumstances,

41
 Finance Act

permit a person to file a tax return

manually or by any other means.”.

Addition of 112. The principal Act is amended by adding

section 45A
immediately after section 45 the following:
“Registr 45A.-(1) Any person who
ation and establishes a storage facility with the
monitori
ng of aim of keeping goods for business or
storage investment purposes, and the facility
facility is capable of storing goods of the
value exceeding ten million shillings
shall register the facility with the
Commissioner General.
(2) The owner of the storage
facility registered under subsection
(1) shall keep records of all stored
goods and report to the
Commissioner General on monthly
basis in the manner prescribed by the
Commissioner General.
(3) Where the Commissioner
General satisfies himself that a
storage facility has not been
registered as required or goods have
been kept without being reported as
required under subsection (2), the
facility owner shall be liable to a
penalty of 300 currency points and
be responsible to pay any detected
loss of revenue with respect to
undisclosed goods, whether the
goods are owned by the storage
facility owner or not.”.

Amendment of 113. The principal Act is amended in section

section 65
65, by-
(a) inserting the words “Subject to subsection (2)”
immediately before the word “Where”
appearing at the beginning of subsection (1);
and

42
 Finance Act

(b) deleting subsection (2) and substituting for it the

following:
“(2) The provisions of
subsection (1) shall apply where the
default which occurred was due to
fraud as it shall be proved in a court of
law.”.

Repeal and 114. The principal Act is amended by

replacement of
section 70 repealing section 70 and replacing for it the following:
“Remission 70. Where the Minister on
of interest in recommendation by the
penalty
Commissioner General is
satisfied that there is good cause
to remit interest or penalty
imposed under any tax law, he
may remit the whole or part of the
interest or penalty payable by that
person.”.

Amendment of 115. The principal Act is amended in section

section 82
82 by deleting the opening phrase and substituting for
it the following:
“Notwithstanding the
provisions of a tax law relating to
offence, a person who fails to comply
with a provision of a tax law commits
an offence and shall, on conviction be
liable-”;

Amendment of 116. The principal Act is amended in section

section 86
86-
(a) by deleting paragraph (b) appearing in
subsection (1) and substituting for it the
following:
“(b) fails to issue fiscal receipt or fiscal
invoice at the time of supply of
goods, rendering service or
receiving payment for goods or
service;”;

43
 Finance Act

(b) in subsection (4) by deleting the word “for”

appearing between the words “payment” and
“goods” and substituting for it the words “or
receipt of”.

Amendment of 117. The principal Act is amended in section

section 87
87 by adding immediately after subsection (4) the
following:
“(5) A person who is
required to be registered or
licensed under a tax law to
perform any function and fails
to apply for such registration or
licensing within the period
prescribed by law or as may be
notified by the Commissioner
General commits an offence
and shall, on conviction, be
liable to a fine not exceeding
500 currency points or to
imprisonment for a term not
exceeding one year or to both.”.

Addition of 118. The principal Act is amended by adding

section 91A
immediately after section 91 the following:
“Excise duty 91A.-(1) A person who,
offences contrary to the provisions of the
Excise (Management and Tariff)
Cap. 147 Act-
(a) manufactures any
excisable goods
without being licenced
by the licensing
authority;
(b) does not abide with
any of the condition in
a licence imposed on
him or breaches any of
the licence conditions
given to him;

44
Finance Act

(c) does not obey a

suspension or
revocation of his
licence by the
Commissioner
together with any
condition thereof;
(d) fails to keep records
with respect to
manufacture, storage
and delivery of
excisable goods at his
factory or place of
work in the prescribed
manner;
(e) denatures spirits for
sale without being
licenced by the
licensing authority
and adopting the
prescribed formula;
(f) fails to make entry or
declaration, before
commencing
manufacture of
excisable goods, of
each building, room,
place, machinery or
equipment, item of
plant for the
manufacture,
preparation for sale or
storage of excisable
goods;
(g) makes use of any
building, room, place,
machinery or
equipment or item of
plant for manufacture,
preparation for sale or
storage of excisable
45
Finance Act

goods without a valid

entry;
(h) makes use of a
building, room, place,
machinery or
equipment or item of
manufacture,
preparation for sale or
storage of excisable
goods for purpose
other than that
declared in the
approved entry; or
(i) effects alteration in
shape, position, or
capacity of a building,
room, place of
manufacture or
preparation for sale or
storage of excisable
goods without prior
permission of the
Commissioner,
commits an offence and shall, on
conviction, be liable to a fine not
exceeding 330 currency points or
to imprisonment for a term not
exceeding three years or to both.
(2) Where a person who
commits an offence under
subsection (1) is a subsequent
offender, such person shall, on
conviction, be liable to a fine of
not less than 330 currency points
but not exceeding 3500 currency
points or to imprisonment for a
term of not less than five years but
not exceeding twenty years or to
both.
(3) In addition to the
penalty provided for under
46
 Finance Act

subsection (1) or (2), the court

may issue an order for forfeiture
of any plant, excisable goods or
materials connected to the
commission of the offence.”.

PART XXXIV
AMENDMENT OF THE TAX REVENUE APPEALS ACT,
(CAP. 408)

Construction 119. This Part shall be read as one with the

Cap. 408
Tax Revenues Appeals Act, hereinafter referred to as
the “principal Act”

Amendment of 120. The principal Act is amended in section

section 22
22, by-
(a) deleting the words “through mediation”
appearing in subsection (7);
(b) deleting the word “mediation” wherever it
appears in subsection (8) and substituting for it
the words “amicable settlement”.

PART XXXV
AMENDMENT OF THE TOURISM ACT,
(CAP. 65)

Construction 121. This Part shall be read as one with the

Cap. 65
Tourism Act, hereinafter referred to as the “principal
Act”.

Amendment of 122. The principal Act is amended in section

section 23
23, by-
(a) deleting subsection (2) and substituting for it
the following:
“(2) On receipt of an
application referred to under
subsection (1), the Board shall, where
it is satisfied that the applicant-
(a) has complied with the
requirements, approve
47
 Finance Act

issuance of a licence to the

applicant; or
(b) has not complied with the
requirements or does not
possess the prescribed
qualifications, refuse the
application and give
reasons for the refusal.”;
and
(b) adding immediately after subsection (2) the
following:
“(3) Upon approval of an
application by the Board, the Director
shall issue a licence to the applicant.”.
PART XXXVI
AMENDMENT OF THE TRUSTEES INCORPORATION ACT,
(CAP. 318)

Construction 123. This Part shall be read as one with the

Cap. 318
Trustee Incorporation Act, hereinafter referred to as
the “principal Act”.
Amendment of 124. The principal Act is amended in section
section 1A
1A by deleting the definition of the term “beneficial
owner” and substituting for it the following:
““beneficial owner” has the meaning
Cap. 423
ascribed to it under the Anti-
Money Laundering Act;”.

Amendment of 125. The principal Act is amended in section

section 16
16, by-
(a) deleting subsection (2) and substituting for it
the following:
“(2) Where-
(a) a person ceases to be a
trustee or a beneficial
owner and a new trustee is
appointed;
(b) a person who becomes a
beneficial owner or a
trustee changes his name,
48
 Finance Act

residence or postal address;

or
(c) a beneficial owner changes
his particulars pursuant to
section 2(3),
the trustees for the time being shall,
within one month of the change, notify
the Administrator General in the
prescribed manner.”;
(b) adding immediately after subsection (2)
the following:
“(3) Any trustee who fails to
comply with the requirements of
subsection 2 or section 2(2) commits
an offence and shall, on conviction, be
liable to a fine of not less than two
hundred thousand shillings but not
exceeding one million shillings.”; and
(c) renumbering subsection (3) as subsection
(4).
PART XXXVII
AMENDMENT OF THE VALUE ADDED TAX ACT,
(CAP. 148)

Construction 126. This Part shall be read as one with the

Cap. 148
Value Added Tax Act, hereinafter referred to as the
“principal Act.”
Amendment of 127. The principal Act is amended in section
section 6
6-
(a) by adding immediately after subsection (1) the
following:
“(1A) Notwithstanding the
provisions of subsection (1), the Minister
shall, upon approval by the Cabinet and by
order published in the Gazette, grant value
added tax exemption on goods or services
for implementation of special strategic
investments approved by the National
Investment Steering Committee under the
Cap. 38 Tanzania Investment Act.”;
49
 Finance Act

(b) in subsection (2) by deleting paragraph (e)

and substituting for it the following:
“(e) an importation by or
supply of goods or services
to a non-governmental
organisation having a
financing agreement with
the Government of the
United Republic solely for
a project implemented by
the respective non-
governmental organisation
or a non-government
organisation duly
appointed to implement
the project:
Provided that, such
agreement provides for value
added tax exemption on goods
or services.”.

Amendment of 128. The principal Act is amended in section

section 11
11(10) by adding the words “Heading 87.16 and HS
Code 8701.20.90” immediately after figure “90”.

Addition of 129. The principal Act is amended by adding

section 55A
immediately after section 55 the following:
“Zero- 55A. A supply by a local
rating of manufacturer of double refined
edible oil or
fertiliser edible oil or fertiliser shall be zero-
rated for a period of one year from
1st July, 2022 to 30th June, 2023.”.

Amendment of 130. The principal Act is amended in section

section 64
64 by adding immediately after subsection (4) the
following:
“(5) Notwithstanding
subsection (1), where it is not
practicable to appoint a tax
representative due to his business
circumstances, a non-resident person
50
 Finance Act

shall apply to the Commissioner to be

registered in accordance with
procedures prescribed in the
regulations.”.

Amendment of 131. The principal Act is amended in section

section 69
69(1) by deleting the words “section 70” and
substituting for them the words “section 68”.

Amendment of 132. The principal Act is amended in section

section 94
94(2) by adding immediately after paragraph (g) the
following:
“(h) prescribing the manner and
procedure of dealing in loans,
including alternative financing
products approved by the Bank of
Tanzania.”.

Amendment of 133. The principal Act is amended in the

Schedule
Schedule-
(a) in Part I-
(i) by adding immediately after
subitem 23 appearing in item 1 the
following:
“
S/N IMPLEMENT HS CODES
24. Ear tag 3926.90.90
25. Ear tag applicators 8456.90.00
26. Automatic turning table 8207.30.00
27. Stunning box 8438.50.00
28. Lessor beam machines 9402.90.90
”
(ii) by adding immediately after
subitem 8 appearing in item 2 the
following:
“
9. Agro net 56.08

”
(iii) in item 3, by-
(a) deleting the phrase “except
with additives and long life
51
 Finance Act

milk” appearing in sub

items 8 and 9;
(b) adding immediately after
figure “08.10” appearing in
the third column of sub item
12 the words “and
0905.10.00”;
(c) adding immediately after
item 29 the following:
S/N IMPLEMENT HS CODES
30. Standing tree 06.02
(iv) in item 4, by-
(a) adding a “comma” and the
figure “3926.90.10”
immediately after the figure
5608.11.00 appearing in the
third column of subitem 2;
and

(b) adding immediately after

subitem 5 the following:
“
S/N IMPLEMENT HS CODES
6. fishing hooks, reels and lines 9507.20.00
9507.90.00
9507.30.00

”
(v) in item 6 by adding immediately
after subitem 10 the following:
“
S/N IMPLEMENT HS CODES
11. Dairy packaging materials 3923.30.00
4819.10.00
4819.20.00
4819.20.90
”
(vi) by deleting item 18 and substituting
for it the following:
“18. Importation of
arms and ammunition, parts
and accessories thereof.
equipment and machineries for

52
 Finance Act

the official use of the armed

forces as certified by the
Ministry responsible for
security and defence.”;
(vii) by deleting item 22 and substituting
for it the following:
“22. A supply of sisal ropes of HS
Code 5607.21.00 and
5607.29.00.”;
(viii) by deleting item 27;
(b) in Part II, by-
(i) deleting item 20 and substituting
for it the following:
“
S/N DESCRIPTION
20. An import of machinery of HS Code 8438.50.00
and 8453.10.00 by a local manufacturer of hides
and skins; and a registered abattoir for exclusive
use of skinning, dehiding and leather processing
in Mainland Tanzania duly certified by the
Ministry responsible for livestock or fishery.
”

(ii) deleting item 27 and substituting

for it the following:
“
S/N DESCRIPTION
27. An import of cold rooms of HS Code 9406.10.10,
9406.90.10 and refrigerated truck of HS Codes
8704.21.90; 8704.22.90; 8704.23.90; 8704.31.90;
8704.32.90; 8704.90.90 by a person engaged in
livestock, fishery or agriculture duly certified by
the Ministry responsible for livestock, fishery or
agriculture.
”
(iii) adding immediately after item 28
the following:
“
S/ DESCRIPTION
N
29. An import of raw materials of HS Code
2528.00.00, 2710.99.00, 3505.20.00 and
equipment and machineries of Chapters 84 and 85
to be solely and directly used in manufacturing of
fertilizers duly certified by the Ministry
responsible for industries.

53
 Finance Act

31. An import of soil testing equipment of HS Code

9026.10.00, 9031.80.00, 9027.80.00 and
9027.90.00 as certified by the Ministry responsible
for agriculture.
32. An import of moisture meter of HS Code
9031.80.00, rain gauge for weather stations of HS
Code 9023.00.90, PH meters of HS Code
3822.00.90, tissue culture equipment of HS Code
8419.89.60 and tension meters of HS Code
9031.80.00 as certified by the Ministry responsible
for agriculture.
33. An import of meteorological equipment and
machinery by the Tanzania Meteorological
Authority.
34. An import of raw materials of HS Code
7229.90.00, 3810.90.00, 3401.19.00, 7904.00.00,
4016.93.00, 8481.10.00 and 8309.90.90 by a
manufacturer of gas cylinders upon signing a
performance agreement with the Government of
the United Republic.

”
PART XXXVIII
AMENDMENT OF THE VOCATIONAL EDUCATION AND
TRAINING ACT,
(CAP. 82)

Construction 134. This Part shall be read as one with the

Cap. 82
Vocational Education Training Act, hereinafter
referred to as “the principal Act”.

Amendment of 135. The principal Act is amended in section

section 19
19(1), by-
(a) adding immediately after paragraph (h) the
following:
“(i) intern students from universities
who are under the Tanzania
Employment Service Agency
program;”; and
(b) renaming paragraph (i) as paragraph (j).

54
 Finance Act

_____________

OBJECTS AND REASONS

___________

This Bill is divided into Thirty-Eight parts whereby Part I deals with
preliminary provisions which includes the title of the Bill and the date of
which the Act shall come into operation.

Parts II, VIII, XI, XIII, XXI, XXIII, XXIV, XXX and XXXII
propose to amend the Animal Diseases Act, Cap. 156, the Dairy Industry
Act, Cap. 262, the Energy and Water Utilities Regulatory Authority Act,
Cap. 414, the Fertilisers Act, Cap. 378, the Land Transport Regulatory
Authority Act, Cap. 413, the Local Government (District Authorities) Act,
Cap. 287, the Local Government (Urban Authorities) Act, Cap. 288, the
Tanzania Shipping Agencies Act, Cap. 415 and the Tanzania
Communication Regulatory Authority Act, Cap. 172 in order to remove
conflict of law in the implementation of roles and functions of regulatory
bodies. The amendments aim at improving the business environment and
promoting investments in the country.

Part III of the Bill proposes to amend the Bank of Tanzania Act,
Cap.197 whereby sections 35 and 36 are amended in order to increase the
ceilling of the total amount which Bank of Tanzania can advance to the
Governments. The amendments aim at enabling the Governments to
effectively implement their budgets.

Part IV of the Bill proposes to amend the Business Names

(Registration) Act, Cap. 213, whereby section 2 is amended in order to
harmonise the definition of the term “beneficial owner” with the definition
provided in the Anti-Money Laundering Act, Cap. 423. Sections 4 and 6 are
amended in order to introduce a requirement to furnish information and
particulars relating to the beneficial owners during registration of
partnership. Section 13 is amended in order to introduce a penalty for failure
to provide information relating to the beneficial owners of partnership. The
aim of the amendments is to enhance compliance and ensure availability of
beneficial ownership information.

Part V of the Bill proposes to amend the Cashewnut Industry Act,

Cap. 203, by amending section 17A(2) in order to provide for distribution
of cashewnut revenue. The aim of this amendment is to facilitate
55
 Finance Act

development of the agricultural sector, provision of agricultural input

subsidies and research.

Part VI of the Bill proposes to amend the Companies Act, Cap. 212,
whereby section 2 is amended in order to harmonise the definition of the
term “beneficial owner” with the definition provided in the Anti-Money
Laundering Act, Cap. 423. Sections 115, 116 and 128 are amended in order
to introduce penalties for companies that fail to maintain register of
members and beneficial owners or notify the Registrar of any changes, to
keep an index of the names of the members and beneficial owners of the
company or to file annual returns. Furthermore, section 393 is amended in
order to require the liquidators of companies to maintain accounting records
and documents relating to dissolution of companies.

Part VII of the Bill proposes to amend the Copyright and

Neighbouring Rights Act, Cap. 218, whereby it is proposed to introduce a
copyright levy a rate of 1.5 percent to be charged on blank material,
apparatus, device or equipment used or capable of being used to copy
protected work. Further, the Act is amended generally in order to clearly
stipulate the role and functions of the Copyright Office and introduce a
system of collective management of copyrights. The aim of the amendment
is to separate the role of the Copyright Office and role of collective
management organisation. It is also proposed to impose a requirement for
collective management organisations to submit reports of its operations and
audited accounts to the Copyright Office. The aim is to ensure
accountability and strengthening the management of copyright and
neighbouring rights.

Part IX of the Bill proposes to amend the Excise (Management and

Tariff) Act, Cap. 147, whereby sections 16 and 18 are amended in order to
harmonise penalty system in tax laws. The aim of the amendment is to
consolidate under the Tax Administration Act all penalties for offences
under tax laws. Sections 124 and 125 are amended in order to include in the
scope of the said provisions providers of pay-to-view services using other
means than cable. The Schedule is amended in order to introduce excise
duty rates on sugar confectionaries and lead-acid batteries in order to expand
tax base and protect the consumers health and environment. Moreover, the
Schedule is amended in order to exempt excise duty on packaging materials
for packing horticultural products for exports. The proposed amendments

56
 Finance Act

intend to reduce costs to exporters and enhance competitiveness of

horticultural products in the international market.

Part X of the Bill proposes to amend the Electronic and Postal

Communications Act, Cap. 306, by adding section 164B in order to impose
a fee to be charged on television decoder subscription paid by the user of
decoder with the aim of increasing Government revenue.

Part XII of the Bill proposes to amend the Export Tax Act, Cap. 196,
whereby the Schedule is amended by introducing tax on copper waste or
scrap metals exported from the country. The aim of the amendment is to
promote domestic industrialisation and ensure availability of raw material
to industries which require coper waste or scrap metals.

Part XIV of the Bill proposes to amend the Foreign Vehicles Transit
Charges Act, Cap. 84, in the Schedule by reducing the charges for transit
foreign vehicles exceeding 3 axles in order to align the charges imposed in
the country and those imposed in EAC, SADC and COMESA.

Part XV of the Bill proposes to amend the Gaming Act, Cap. 41,
whereby section 3 is amended in the definition of the term “gaming
activities” to include virtual and internet gaming activities and by adding the
definition of various terms which were not previously defined. Section 31
is amended in order to provide a timeframe within which gaming tax shall
be payable with respect to virtual and internet gaming activities and provide
for the application of the Tax Administration Act to gaming tax. Moreover,
section 31A is amended so as to provide for the procedure of collecting
gaming tax on wining.

Part XVI of the Bill proposes to amend the Government Loans,

Guarantees and Grants Act, Cap. 134, whereby section 3 is amended in order
to improve procedures for determination of debt sustainability by
introducing the use of debt sustainability analysis which involves the
analysis of more than one factor. Section 19 is amended in order to impose
on the commissioner responsible for debt management the obligation to deal
with debt management and improve representation of the member in the
Technical Committee. Section 20 is proposed to be amended so as to make
the department responsible for debt management under the Ministry
responsible for finance to constitute the National Committee Secretariat.
The amendment aims at enhancing efficiency in the performance of
functions of the Secretariat.
57
 Finance Act

Part XVII of the Bill proposes to amend the Hides, Skins and Leather
Trade Act, Cap. 120, whereby section 3 is amended in the definition of the
terms “hide” and “skin” in order to remove hides and skin products of
wildlife from the scope of this Act. The aim is to remove confict of laws and
conflict of roles and functions between the bodies regulating products of
domestic animals.

Part XVIII of the Bill proposes to amend the Income Tax Act, Cap.
332, whereby section 3 is amended in the definition of the term “business”
and adding the definition of the terms “digital market place” and “electronic
services” in order to widen tax base by introducing digital taxation. Section
10 is amended to empower the Minister to grant exemption to special
strategic investments approved by the National Investment Steering
Committee in accordance with the Tanzania Investment Act, Cap. 38 after
being approved by the Cabinet. The aim of the amendment is to promote
investment in the country and harmonise the provisions of the Act and the
tax laws in relation to granting of tax exemption. Section 32 is amended in
order to include in the provision of that section the treatment of profit
derived by non-conventional banks through altenative financing. The aim of
the amendment is to release banks from payment of capital gain tax on assets
sold through altenative financing.

Section 66(4) is proposed to be amended in order to address current

technological changes in the conduct of business by including the control
and management of a business through electronic means. Section 69 is
amended by including into the tax net payments made to foreign investors
who harness natural resource and nonresident who supply digital services
without having physical location within the United Republic in order to
widen tax base. Sections 4 and 79 are proposed to be amended so as to
introduce a regime of taxing income earned by small scale miners in order
to enable them pay tax at the time of selling minerals due to the nature of
their business. Further, section 82 is amended in order to allow tenants to
withhold tax on rental income with respect to residential and commercial
buildings. The amendment also proposes to exclude payment of coupon on
corporate and municipal bonds from being collected through withholding
tax procedure. The aim of the proposed amendments is to increase efficiency
of collection of rental tax by the Government and increase alternative
sources of finance for development projects.

58
 Finance Act

It is proposed to add a new section 90A in order to introduce tax to

non-resident service provider of the digital services at the rate of two
percent. Section 90B is added in order to require the bulk importers of
petroleum products to collect an advance tax from retail traders of petroleum
products. The aim of this amendments is to widen tax base and increase
Government revenue. Moreover, section 92 is proposed to be amended by
excluding non-resident service providers of digital services from obligation
to file return of income.

This Part also proposes to amend the First Schedule in order to adjust
the upper band of the presumptive tax rates with the aim of enhancing
transparency and simplification of assessment and payment procedures. The
amendment also proposes to introduce a fixed tax rate of three million five
hundred thousand shillings to individuals involved in the long-distance
transportation of passangers by buses and carriage of goods by lorries. The
proposed amendments aim to enhance predictability and certainity in
taxation. The First Schedule is further amended by reducing withholding tax
rate on royalty on payments to non-resident service providers in the film
industry. The aim of the amendments is to promote employment and transfer
of knowledge and skills in the film industry.

The Second Schedule is proposed to be amended in order to provide

for exemption on gains on realisation or transfer of mineral rights or mineral
information in respect of joint venture entities formed between the
Government and investors. The Schedule is further amended to provide
exemption on gain on realisation or transfer of free carried interest shares
from joint venture entities to the Government. The amendment also
proposes to grant exemption on shares acquired by the Government through
the Treasury Registrar. The aim of the proposed amendments is to ensure
implementation of Government’s contractual obligations and facilitate
timely transfer of mineral rights and mineral information.

Part XIX of the Bill proposes to amend the Insurance Act, Cap. 394,
by adding a new section 133A that provides for mandatory insurance covers
in respect of commercial buildings, public markets, imported goods, marine
vessels, ferries and pantoons. The aim of this amendment is to increase
insurance uptake and enhance financial inclusion.

Part XX of the Bill proposes to amend the Land Act, Cap. 113,
whereby section 33(11) is amended in order to increase the timeframe of the
requirement of payment of interest on the rent due to be after twelve months
59
 Finance Act

instead of six months. The aim of this amendment is to conform with the
time for payment of annual rent provided under section 33(1) and provide
adequate time to land owners to comply with payment of land rent.

Part XXII of the Bill proposes to amend the Local Government

Finance Act, Cap. 290, whereby sections 6, 7 and 8 are amended by reducing
the hotel levy from ten percent to five percent. Section 16 is amended by
providing the procedures of charging and distribution of levies in the local
government authorities in respect of entities, corporate bodies or individuals
who carry out economic activity in more than one local government
authority. The aim of the proposed amendement is to ensure that every local
government authority benefits from the economic activities carried out in its
area of jurisdiction and to facilitate the provision of quality services to the
community.

It is also proposed to amend section 37A in order to provide for the

distribution of 10% of revenue collected by local government authorities to
finance improvement of enterprenuerial infrastructure and provision of
loans to youth, women and persons with disabilities. The aim of the
proposed amendment is to facilitate small enterpreneurial business
infrastructure by ensuring the availability of areas of business and loan
facilities for small enterprenuers. The Schedule is proposed to be amended
by reducing the cess on forest and exempting the cess on seeds in order to
provide relief to farmers and increase productivity.

Part XXV of the Bill proposes to amend the Mining Act, Cap. 123,
whereby section 87(1) is amended in order to reduce the royalty rate on coal
used as industrial raw materials and royalty rate on gold sold at refineries.
The aim of the amendment is to reduce the costs of production, attract
investments, promote employment and ensure availability of adequate raw
material for refinery centres.

Part XXVI of the Bill proposes to amend the National Payment

Systems Act, Cap. 437, whereby section 46A is amended in order to reduce
the transaction levy from a maximum of 7,000 shillings to 4,000 shillings in
each transaction. The amendment aims to reduce the cost of living to
citizens.

Part XXVII proposes to amend the Occupational Safety and Health

Act, Cap. 297, whereby section 17 is amended in order to require the
Occupational Safety and Health Agency to issue licences within a period of
60
 Finance Act

seven days after receiving the application for licence. The aim is to promote
business and investment in the country.

Part XXVIII of the Bill proposes to amend the Ports Act, Cap. 166,
whereby section 67(3) is proposed to be amended in order to revert to
Tanzania Revenue Authority the obligation of collecting wharfage revenue.

Part XXIX proposes to amend the Tanzania Investment Act, Cap. 38

by amending section 20 in order to enable fiscal incentives approved by
National Investment Steering Committee to special strategic investors to be
issued under relevant tax laws. The aim of the amendment is to harmonize
the provisions of the Act and the tax laws in relation to granting of tax
exemption.

Part XXXI of the Bill proposes to amend the Tanzania Revenue

Authority Act, Cap. 399, whereby section 23 of the Act is proposed to be
amended to recognise fees charged on self-financing operational services to
be among fees which are charged and collected by the Authority from its
operations. It is further proposed to amend the Second Schedule so as to
make provision for members of the Board to attend meetings through duly
appointed proxies.

Part XXXIII of the Bill proposes to amend the Tax Administration

Act, Cap. 438, whereby section 3 is amended by including electronic
applications and other systems in the definition of the term “fiscal device”.
Section 28 is amended to provide for the licensing, restrictions, functions
and control of tax consultants. It is futher proposed to add section 37A in
order to provide for compulsory electronic filing of tax returns. Section 45
is amended to provide mechanism of enabling close monitoring of storage
facilities for tax compliance.

This Part also proposes to amend section 70 in order to empower the

Minister to remit interest and penalties. The proposed amendment intends
to remove obstacles in the grant of exemptions and simplifying remission of
interest and penalties. Sections 82, 86, 87 and 91A are amended with the
aim of providing clarity on offence and penalty provisions and update excise
duty offences in order to enhance compliance.

Part XXXIV proposes to amend the Tax Revenue Appeals Act, Cap.
408 whereby section 22 is amended in order to enable tax disputes to be
settled amicably without the involvement of a third party (mediator). The
61
 Finance Act

proposed amendment aims at ensuring timely and cost effective settlement

of tax disputes.

Part XXXV proposes to amend the Tourism Act, Cap. 65 by

amending section 23 in order to empower the Director General of the
Tourism Board to issue licence upon approval by the Board. The aim of the
amendment is to reduce bureaucracy in the procedures of obtaining a licence
under the Act.

Part XXXVI of the Bill proposes to amend the Trustees’

Incorporation Act, Cap. 318, whereby section 1A is amended in order to
harmonise the definition of the term “beneficial owner” with the definition
provided in the Anti-Money Laundering Act, Cap. 423. Section 16 is
amended so a to require trustees to notify the Administrator General on any
changes in the information of beneficial owners and impose a penalty for
non-compliance.

Part XXXVII of the Bill proposes to amend the Value Added Tax
Act, Cap. 148, whereby section 6 is amended to grant power to the Minister
to exempt value added tax to special strategic investment after being
approved by the National Investment Steering Committee (NISC) and the
Cabinet. This amendment aims at promoting Investment in the country and
to do away with the current inconsistency in granting additional incentives
to special strategic investors under the Tanzania Investment Act Cap. 38 and
the Value Added Tax Act Cap.148.

Section 11 is amended in order to add trailers and road tractors for

semitrailers in the list of goods that qualify for the VAT deferment for the
purpose of reducing costs to investors and promoting growth of industries
in the country. It is proposed to add section 55A in order to zero-rate supply
of double refined edible oils and fertilizers by a local manufacturer for a
period of one year for the purpose of reducing costs to final consumers and
producers.

Section 64 is proposed to be amended in order to simplify

registration of non-resident service providers of digital services who do not
have places of business in the United Republic of Tanzania.This amendment
will facilitate collection of value added tax on digital services. Furthermore,
section 94 is proposed to be amended in order to enable the Minister to make
regulations prescribing the manner of dealing with alternative financing
products. The aim of the amendment is to align treatment of alternative
62
 Finance Act

financing products and conventional loans and enhance financial inclusions

and equity in taxation.

The Schedule is amended in Part I in order to exempt VAT on

standing trees with the aim of promoting the growth of forest sector; to
exempt VAT on moisture testing equipments and weather forecasting
equipments in order to promote growth of agricultural sector as well as to
promote modern weather forecasting for sustainable planning and national
security; to exempt VAT on processed milk with additives and longlife
milk; to exempt VAT on dairy packaging materials for the purpose of
reducing costs to final consumers, protect domestic industries and increase
employment; to exempt VAT on ear tags, ear tag applicators and lessor
beam machines for the purpose of supporting identification, registration and
monitoring of livestock in the country; to grant value added tax exemption
on unprocessed green vanilla, agro-nets and fishing equipment in order to
promote growth of agriculture and fishing sector in the country, as well as
to exempt value added tax on supply of sisal ropes to encourage domestic
use of the sisal ropes and increase domestic production.

It is also proposed to amend the Schedule in order to remove

exemption on smart phones, tablets, modems, and air charter services for
the purpose of expanding the tax base and increase Government revenue.

The Schedule is further proposed to be amended in order to exempt

value added tax on refrigerated trucks and cold rooms for the purpose of
promoting agriculture, livestock and fishing sectors; to provide value added
tax exemption on equipment for abattoirs or slaughter houses for the
purposes of promoting modern meat processing; to exempt raw materials
used to manufacture fertilizers for the purpose of reducing costs to
manufacturers and protect domestic industries and to exempt machines to
manufacturers of fertilizers in order to support domestic manufacturers of
fertilizers and promote investment in the country.

Part XXXVIII of the Bill proposes to amend the Vocational

Education and Training Act, Cap. 82, whereby section 19 is amended in
order to provide incentives to employers who engage university graduates
through TAESA programme as interns in their workplaces. The aim of the
amendment is to increase the number of internship beneficiaries who will
have job skills and experience prior to employment.
_____________

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MADHUMUNI NA SABABU
___________

Muswada huu umegawanyika katika Sehemu Thelathini na Nane

ambapo Sehemu ya Kwanza inajumuisha jina la Muswada na tarehe ambayo
Sheria itaanza kutumika.

Sehemu za Pili, Nane, Kumi na Moja, Kumi na Tatu, Ishirini na

Moja, Ishirini na Tatu, Ishirini na Nne, Thelathini na Thelathini na Mbili
zinapendekeza kufanya marekebisho kwenye Sheria ya Magonjwa ya
Wanyama, Sura ya 156, Sheria ya Tasnia ya Maziwa, Sura ya 262, Sheria
ya Udhibiti wa Huduma za Nishati na Maji, Sura ya 414, Sheria ya Mbolea,
Sura ya 378, Sheria ya Mamlaka ya Udhibiti wa Usafiri wa Nchi Kavu, Sura
ya 413, Sheria ya Serikali za Mitaa Mamlaka za Wilaya, Sura ya 287, Sheria
ya Serikali za Mitaa Mamlaka za Miji, Sura ya 288, Sheria ya Wakala wa
Meli Tanzania, Sura ya 415 na Sheria ya Mamlaka ya Mawasiliano
Tanzania Sura ya 172 ili kuondoa mwingiliano wa sheria mbalimbali za
taasisi za udhibiti wa biashara. Lengo la marekebisho haya ni kuboresha
mazingira ya ufanyaji biashara na uwekezaji nchini.

Sehemu ya Tatu ya Muswada inapendekeza kurekebisha Sheria ya

Benki Kuu ya Tanzania, Sura ya 197 ambapo vifungu vya 35 na 36
vinarekebishwa kwa kuongeza kiwango cha ukomo wa Serikali kukopa
kutoka Benki Kuu. Lengo la marekebisho haya ni kuziwezesha Serikali
kutekeleza Bajeti zake kikamilifu.

Sehemu ya Nne ya Muswada inapendekeza kufanya marekebisho

katika Sheria ya Usajili wa Majina ya Biashara, Sura ya 213 ambapo katika
kifungu cha 2 tafsiri ya neno “mmiliki mnufaika” inarekebishwa ili
kuwianisha tafsiri hiyo na ile iliyotolewa katika Sheria ya Kudhibiti
Utakasishaji wa Fedha Haramu, Sura ya 423. Vifungu vya 4 na 6
vinarekebishwa ili kuweka takwa la kuwasilisha taarifa za wamiliki
wanufaika wakati wa usajili kwa biashara zinazoendeshwa kwa ubia.
Kifungu cha 13 kinarekebishwa ili kuweka faini kwa kushindwa kutoa
taarifa zinazohusiana na wamiliki wanufaika wa ubia. Lengo la marekebisho
haya ni kuhakikisha uzingatiaji wa sheria na upatikanaji wa taarifa za
wamiliki wanufaika.

Sehemu ya Tano ya Muswada inapendekeza marekebisho katika

Sheria ya Tasnia ya Korosho, Sura ya 203 ambapo kifungu cha 17A(2)
kinarekebishwa ili kuainisha mgawanyo wa mapato yatokanayo na korosho.
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Lengo la marekebisho haya ni kuwezesha maendeleo ya sekta ya kilimo kwa

kusaidia upatikanaji wa rasilimali fedha kwa ajili ya ruzuku za pembejeo za
kilimo na tafiti.

Sehemu ya Sita ya Muswada inapendekeza kurekebisha Sheria ya

Makampuni, Sura ya 212 ambapo katika kifungu cha 2 tafsiri ya neno
“mmiliki mnufaika” inarekebishwa ili kuwianisha tafsiri hiyo na ile
iliyotolewa katika Sheria ya Kudhibiti Utakasishaji wa Fedha Haramu, Sura
ya 423. Vifungu vya 115, 116 na 128 vinarekebishwa ili kuweka adhabu
kwa makampuni ambayo yatashindwa kutunza rejesta ya wanachama na
wamiliki wanufaika au kutoa taarifa ya mabadiliko kwenye rejesta,
kushindwa kuweka fahirisi ya majina ya wanachama na wamiliki wanufaika
wa kampuni na kushindwa kuwasilisha ritani ya kila mwaka ya kampuni.
Vilevile, kifungu cha 393 kinarekebishwa ili kuweka wajibu kwa wafilisi
wa makampuni kutunza kumbukumbu za hesabu na nyaraka zinazohusiana
na ufilisi wa makampuni.

Sehemu ya Saba ya Muswada inapendekeza kufanya marekebisho

katika Sheria ya Hakimiliki na Hakishirikishi, Sura ya 218 kwa kuanzisha
tozo ya asilimia 1.5 katika vifaa vinavyotumika kuzalisha, kusambaza,
kudurufu na kutunza kazi za sanaa, uandishi na ubunifu mwingine.
Marekebisho ya jumla yanapendekezwa pia kwenye Sheria ili kuainisha
wazi majukumu ya Ofisi ya Hakimiliki na kuweka mfumo wa usimamizi
jumuishi wa hakimiliki. Lengo la marekebisho yanayopendekezwa ni
kutenganisha majukumu ya Ofisi ya Hakimiliki na majukumu ya taasisi za
usimamizi jumuishi. Inapendekezwa pia kuweka wajibu kwa taasisi za
usimamizi jumuishi kuwasilisha kwa Ofisi ya Hakimiliki taarifa zao za
utendaji na hesabu zilizokaguliwa. Lengo la marekebisho haya ni kuongeza
uwajibikaji na kuimarisha usimamizi wa masuala yanayohusu hakimiliki na
hakishirikishi.

Sehemu ya Tisa ya Muswada unapendekeza kufanya marekebisho

kwenye Sheria ya Ushuru wa Bidhaa, Sura ya 147 ambapo vifungu vya 16
na 18 vinarekebishwa ili kuwianisha mfumo wa adhabu katika sheria za
kodi. Lengo la marekebisho haya ni kuhakikisha kuwa adhabu
zitakazotumika dhidi ya makosa ya kikodi ni zile zilizoainishwa katika
Sheria ya Usimamizi wa Kodi. Vifungu vya 124 na 125 vinarekebishwa ili
kujumuisha katika masharti ya vifungu hivyo watoa huduma wa televisheni
za kulipia wanaotumia miundombinu mingine tofauti na ile ya ardhini.
Jedwali linafanyiwa marekebisho ili kubainisha viwango vya ushuru wa
bidhaa kwenye bidhaa za sukari na betri za maji kwa lengo la kupanua wigo
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wa kodi na kulinda afya za walaji na mazingira. Vilevile, Jedwali

linarekebishwa ili kusamehe ushuru wa bidhaa kwenye vifungashio vya
maua, matunda na mbogamboga kwa lengo la kuwapunguzia gharama
wauzaji wa bidhaa hizo nje ya nchi na kuongeza ushindani wa bidhaa hizo
katika masoko ya kimataifa.

Sehemu ya Kumi ya Muswada inapendekeza kufanya marekebisho

katika Sheria ya Mawasiliano ya Kielektroniki na Posta, Sura ya 306 kwa
kuongeza kifungu kipya cha 164B ili kutoza ada ya matumizi ya king’amuzi
kulingana na kiwango cha matumizi kwa lengo la kuongeza mapato ya
Serikali.

Sehemu ya Kumi na Mbili ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Usafirishaji wa Bidhaa Nje ya Nchi, Sura ya
196 ambapo Jedwali linarekebishwa ili kuweka tozo ya usafirishaji wa
vyuma chakavu nje ya nchi. Lengo la marekebisho haya ni kulinda viwanda
vya ndani na kuhakikisha upatikanaji wa malighafi kwa viwanda vya ndani
vya bidhaa za chuma.

Sehemu ya Kumi na Nne ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Magari ya Kigeni, Sura ya 84 kwa
kurekebisha Jedwali ili kupunguza ada ya magari ya kigeni yanayozidi
ekseli 3 yanayopita nchini kwa lengo la kuwianisha viwango vya ada
zinazotozwa nchini na zile zinazotozwa katika ukanda wa Jumuiya ya
Afrika Masharika, Jumuiya ya Maendeleo ya Nchi za Kusini mwa Afrika,
na Soko la Pamoja la Mashariki na Kusini mwa Afrika.

Sehemu ya Kumi na Tano ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Michezo ya Kubahatisha, Sura ya 41 ambapo
kifungu cha 3 kinarekebishwa katika tafsiri ya maneno “shughuli za
michezo ya kubahatisha” ili kujumuisha shughuli za michezo ya
kubahatisha kwa njia ya mtandao na kuongeza tafsiri ya misamiati ambayo
ilikuwa haijatafsiriwa katika Sheria. Kifungu cha 31 kinarekebishwa kwa
lengo la kuainisha masharti ya Sheria ya Usimamizi wa Kodi
yatakayotumika katika kodi ya michezo ya kubahatisha. Vilevile, kifungu
cha 31A kinarekebishwa kwa lengo la kuweka utaratibu wa ukusanyaji wa
kodi kwenye zawadi za ushindi katika michezo ya kubahatisha.

Sehemu ya Kumi na Sita ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Mikopo, Dhamana na Misaada ya Serikali,
Sura ya 134 ambapo kifungu cha 3 kinapendekezwa kurekebishwa ili
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kuboresha utaratibu wa ukokotoaji wa uhimilivu wa deni kwa kutumia

mfumo unaohusisha kipimo zaidi ya kimoja katika kukokotoa uhimilivu wa
deni. Kifungu cha 19 kinapendekezwa kurekebishwa ili kumpa Kamishna
wa Usimamizi wa Madeni jukumu la kusimamia deni la taifa. Aidha,
kifungu hicho kinarekebishwa pia ili kuboresha uwakilishi wa wajumbe
katika Kamati ya Wataalamu. Kifungu cha 20 kinarekebishwa ili kuifanya
idara inayoshughulikia usimamizi wa madeni kuwa Sekretarieti ya Kamati
ya Taifa ya Usimamizi wa Madeni. Lengo la marekebisho
yanayopendekezwa ni kuongeza ufanisi katika utendaji wa majukumu ya
Sekretarieti.

Sehemu ya Kumi na Saba ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Ngozi na Bidhaa za Ngozi, Sura ya 120
ambapo kifungu cha 3 kinarekebishwa katika tafsiri ya maneno “ngozi” na
“bidhaa za ngozi” ili kuondoa ngozi au bidhaa za ngozi za wanyamapori
katika wigo wa Sheria hiyo. Lengo la marekebisho haya ni kuondoa
mgongano wa sheria na mwingiliano wa majukumu kati ya vyombo
vinavyosimamia ngozi na bidhaa za ngozi za wanyama wa majumbani na
vile vinavyosimamia ngozi na bidhaa za ngozi za wanyamapori.

Sehemu ya Kumi na Nane ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Kodi ya Mapato, Sura ya 332 ambapo kifungu
cha 3 kinapendekezwa kurekebishwa kwa kuongeza tafsiri ya maneno
“digital market place” na “electronic services” ili kupanua wigo wa kodi
kwa kutoza huduma za kidigitali. Kifungu cha 10 kinarekebishwa ili kumpa
Waziri mamlaka ya kusamehe kodi ya mapato kwa uwekezaji chini ya
Sheria ya Uwekezaji, Sura ya 38, na kupata ridhaa ya Baraza la Mawaziri.
Lengo la marekebisho haya ni kuvutia uwekezaji nchini na kuwianisha
masharti ya Sheria hii na masharti ya sheria za kodi kuhusu utaratibu wa
kutoa misamaha ya kodi. Kifungu cha 32 kinarekebishwa ili kujumuisha
katika masharti ya kifungu hicho faida inayopatikana kutoka katika mikopo
mbadala. Marekebisho haya yamelenga kuziondolea benki wajibu wa kulipa
kodi ya ongezeko la mtaji katika miamala ya mauzo ya mali iliyouzwa
kupitia utaratibu wa mkopo mbadala.

Kifungu cha 66(4) kinapendekezwa kurekebishwa ili kuendana na

mabadiliko ya teknolojia kwa kujumuisha uendeshaji na usimamizi wa
biashara unaofanyika kwa njia za kielektroniki. Kifungu cha 69
kinarekebishwa ili kuongeza malipo ya rasilimali pamoja na huduma za
kidigitali zinazotolewa na watoa huduma wasio na makazi hapa nchini kwa
lengo la kupanua wigo wa kodi. Vifungu vya 4 na 79 vinapendekezwa
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kurekebishwa ili kuweka utaratibu maalum wa utozaji wa kodi ya mapato

kwa walipa kodi binafsi wadogo wanaojishughulisha na uchimbaji wa
madini ili kuwezesha kodi kukusanywa pale wanapouza madini kutokana
na mazingira ya kazi yao. Aidha, kifungu cha 82 kinarekebishwa ili
kuwezesha wapangaji binafsi kuzuia kodi ya mapato kwenye malipo ya
pango ya nyumba za biashara na makazi. Pia Sheria inarekebishwa ili
kuondoa sharti la kukata kodi ya zuio kwenye malipo ya riba za hati fungani
za makampuni na manispaa. Lengo la marekebisho haya ni kuleta ufanisi
wa ukusanyaji wa kodi ya pango na kuongeza vyanzo mbadala vya fedha
kwa ajili ya kugharamia miradi ya maendeleo.

Inapendekezwa kuongeza kifungu kipya cha 90A ili kutoza kodi ya

mapato ya asilimia 2 kwenye malipo yanayofanywa kwa watoa huduma za
kidijitali wasio wakazi kwa lengo la kupanua wigo wa kodi na kuongeza
mapato ya Serikali. Kifungu cha 90B kinaongezwa ili kuwezesha wauaji wa
jumla wa mafuta kuwa mawakala wa kukusanya kodi kwa niaba ya wauzaji
wa rejereja wa mafuta. Kiasi hicho kitakuwa malipo ya awali ya kodi ya
mapato kwa waagizaji wa mafuta wadogo. Aidha, kifungu cha 92
kinapendekezwa kufanyiwa marekebisho ili kuwaondolea watoa huduma za
kidijitali wasio wakazi wajibu wa kuwasilisha ritani za kodi ya mapato.

Sehemu hii pia inapendekeza kufanya marekebisho katika Jedwali

la Kwanza kwa kurekebisha kiwango cha kodi kwenye daraja la juu la
mauzo kwa walipakodi binafsi wadogo ili kuongeza uwazi na kurahisisha
ukadiriaji na ulipaji wa kodi. Inapendekezwa pia kutoza kiwango cha mfuto
(flat rate) cha shilingi milioni tatu na laki tano kwa mwaka kwa magari ya
mizigo na mabasi ya abiria. Lengo la marekebisho haya ni kuweka mfumo
wa kodi unaotabirika. Aidha, Jedwali la Kwanza linarekebishwa kwa
kupunguza kiwango cha kodi ya zuio katika malipo ya mrabaha ya filamu
kwa watoa huduma wa nje ya nchi kwa lengo la kuongeza ajira, kukuza
tasnia ya filamu na kuchochea uhamishaji wa ujuzi.

Jedwali la Pili linafanyiwa marekebisho ili kusamehe kodi ya

ongezeko la mtaji kwenye uhamishaji wa haki na taarifa za uchimbaji
madini kwenda kampuni za ubia, uhamishaji wa hisa kwenda Serikalini, na
kwenye hisa ambazo Serikali imepata kupitia Msajili wa Hazina. Lengo la
marekebisho haya ni kuwezesha Serikali kutekeleza majukumu yake ya
kimkataba na kuhakikisha kuwa uhamishaji wa haki na taarifa za madini
unafanyika kwa wakati.

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Sehemu ya Kumi na Tisa ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Bima, Sura ya 394 kwa kuongeza kifungu
kipya cha 133A kinachoweka masharti ya bima ya lazima kwa majengo ya
biashara, masoko ya umma, bidhaa zinazoagizwa kutoka nje ya nchi,
vyombo vya majini na vivuko. Lengo la marekebisho haya ni kuongeza
matumizi ya bima na kuimarisha ushirikishwaji wa kifedha.

Sehemu ya Ishirini ya Muswada inapendekeza kufanya marekebisho

katika Sheria ya Ardhi, Sura ya 113 ambapo kifungu cha 33(11)
kinarekebishwa ili kuongeza muda wa kuanza kulipa riba ya deni la kodi ya
pango kutoka miezi sita hadi miezi kumi na mbili. Lengo la marekebisho
haya ni kuwianisha muda wa kuanza kulipa riba ya deni la kodi ya pango
ulioainishwa katika kifungu cha 33(1) na kutoa muda wa kutosha kwa
wamiliki wa ardhi kulipa kodi ya pango.

Sehemu ya Ishirini na Mbili ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Fedha ya Serikali za Mitaa, Sura ya 290
ambapo vifungu vya 6, 7 na 8 vinarekebishwa kwa kupunguza tozo ya
kitanda kutoka asilimia kumi hadi asilimia tano. Kifungu cha 16
kinarekebishwa ili kuweka utaratibu wa kutoza na kugawanya mapato ya
halmashauri yatokanayo na ushuru wa huduma kwenye makampuni, taasisi,
biashara au watu binafsi wanaotekeleza shughuli zao kwenye halmashauri
zaidi ya moja. Lengo la marekebisho yanayopendekezwa ni kuhakikisha
kila halmashauri inanufaika na shughuli za kiuchumi zinazotekelezwa
kwenye maeneo yao ya utawala ili kuwezesha utoaji wa huduma bora kwa
jamii. Aidha, kifungu cha 37A kinarekebishwa ili kuainisha mgawanyo wa
asilimia 10 ya mapato yanayokusanywa na mamlaka za serikali za mitaa.
Kiwango hicho kitatengwa kwa ajilli ya kugharamia miundombinu ya
wajasiriamali na kutoa mikopo kwa vijana, wanawake na watu wenye
ulemavu. Aidha Jedwali linarekebishwa ili kupunguza ushuru wa mazao
kwenye misitu na kusamehe ushuru kwenye mbegu kwa lengo la kukuza
sekta ya misitu na kuwapa unafuu wakulima na kuongeza tija kwenye
uzalishaji wa mazao mbalimbali.

Sehemu ya Ishirini na Tano ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Madini, Sura ya 123 ambapo kifungu cha
87(1) kinarekebishwa kwa lengo la kupunguza kiwango cha mrabaha kwa
makaa ya mawe yanayotumika kama malighafi ya viwandani na kiwango
cha mrabaha kinacholipwa kwa dhahabu zinazouzwa katika vituo vya
kusafisha madini. Lengo la marekebisho haya ni kupunguza gharama za

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uzalishaji, kuvutia uwekezaji, kukuza ajira na kuhakikisha kuwa vituo vya

kusafishia madini vinapata malighafi ya kutosha.

Sehemu ya Ishirini na Sita ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Mifumo ya Malipo, Sura ya 437 ambapo
kifungu cha 46A kinarekebishwa ili kupunguza ukomo wa juu wa tozo ya
muamala kutoka kiwango kisichozidi shilingi 7,000 hadi shilingi 4000 kwa
kila muamala wa kutuma au kutoa fedha. Lengo la marekebisho haya ni
kupunguza makali ya maisha kwa wananchi.

Sehemu ya Ishirini na Saba ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Usalama na Afya Mahali pa Kazi, Sura ya 297
ambapo kifungu cha 17 kinarekebishwa ili kuweka takwa kwa Wakala wa
Usalama na Afya Mahali pa Kazi kutoa leseni ndani ya siku saba toka
kupokelewa kwa maombi ya leseni baada ya mwombaji kukidhi vigezo.
Lengo la marekebisho haya ni kuweka mazingira wezeshi ya ufanyaji wa
biashara na uwekezaji nchini.

Sehemu ya Ishirini na Nane ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Bandari, Sura ya 166 ambapo kifungu cha
67(3) kinapendekezwa kurekebishwa ili kurudisha mamlaka ya kukusanya
ushuru wa bandari kwa Mamlaka ya Mapato Tanzania.

Sehemu ya Ishirini na Tisa ya Muswada inapendekeza kurekebisha

Sheria ya Uwekezaji Tanzania, Sura ya 38 ambapo kifungu cha 20
kinarekebishwa ili kuwezesha vivutio vya kikodi vilivyoidhinishwa na
Kamati ya Uwekezaji ya Taifa kutolewa chini ya sheria husika za kodi.
Marekebisho haya yanalenga kuwianisha masharti ya Sheria hii na masharti
ya sheria za kodi kuhusu utaratibu wa kutoa misamaha ya kodi.

Sehemu ya Thelathini na Moja ya Muswada inapendekeza

kurekebisha Sheria ya Mamlaka ya Mapato Tanzania, Sura ya 399 ambapo
kifungu cha 23 kinarekebishwa ili kutambua ada kwenye huduma za
kitaalamu zinazotolewa na Mamlaka ya Mapato kama sehemu ya ada
zinazotozwa na kukusanywa na Mamlaka ya Mapato. Inapendekezwa pia
kurekebisha Jedwali la Pili ili kuwawezesha wajumbe wa Bodi ya Mamlaka
ya Mapato kuhudhuria vikao kupitia wawakilishi watakaowateua.

Sehemu ya Thelathini na Tatu ya Muswada inapendekeza

kurekebisha Sheria ya Usimamizi wa Kodi, Sura ya 438 ambapo kifungu
cha 3 kinarekebishwa kwa kujumuisha risiti zinazotolewa kupitia mifumo
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mbalimbali ya kielektroniki au simu za mikononi katika tafsiri ya neno

“mashine ya kutoa risiti za kielektroniki”. Kifungu cha 28 kinarekebishwa
ili kutoa masharti yanayohusu mamlaka ya utoaji leseni, usimamizi na
ufuatiaji wa mienendo ya washauri wa kodi. Inapendekezwa kuongeza
kifungu kipya cha 37A ili kuweka takwa la lazima la kuwasilisha taarifa
rasmi za kodi kwa njia ya kielektroniki. Kifungu cha 45 kinarekebishwa kwa
lengo la kuweka utaratibu wa usajili wa maghala ili kuwezesha ufuatiliaji
wa kodi.

Sehemu hii inapendekeza kurekebisha kifungu cha 70 ili kumpa

Waziri mamlaka ya kusamehe riba na adhabu. Pendekezo hili litasaidia
kuondoa changamoto zilizopo katika kutoa misahama hiyo, kurahisisha
utolewaji wa misamaha ya riba na adhabu na kupunguza usumbufu kwa
walipakodi. Aidha, vifungu vya 82, 86, 87 na 91A vinarekebishwa kwa
lengo la kuongeza ufasaha wa vifungu vya adhabu na kuhuisha vifungu vya
adhabu vya ushuru wa bidhaa.

Sehemu ya Thelathini na Nne ya Muswada inapendekeza

kurekebisha Sheria ya Rufaa za Kodi, Sura ya 408 ambapo kifungu cha 22
kinarekebishwa ili kuhakikisha migogoro ya kikodi inatatuliwa kati ya
Mamlaka ya Mapato na walipakodi bila kuhusisha msuluhishi wa kati.
Lengo la marekebisho haya ni kuwezesha utatuzi wa migogoro kwa haraka
na kwa gharama nafuu kwa pande husika.

Sehemu ya Thelathini na Tano ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Utalii, Sura ya 65 kwa kurekebisha kifungu
cha 23 ili kumpa Mkurugenzi Mkuu wa Bodi ya Utalii mamlaka ya kutoa
leseni baada ya kuidhinishwa na Bodi. Lengo la marekebisho haya ni
kuondoa urasimu uliopo katika mchakato wa kupata leseni chini ya Sheria
hiyo.

Sehemu ya Thelathini na Sita ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Udhamini Sura ya 318 katika kifungu cha 1A
ambapo tafsiri ya neno “mmiliki mnufaika” inarekebishwa ili kuwianisha
tafsiri hiyo na ile iliyotolewa katika Sheria ya Kudhibiti Utakasishaji wa
Fedha Haramu, Sura ya 423. Kifungu cha 16 kinarekebishwa ili kuwapa
wadhamini jukumu la kumtaarifu Kabidhi Wasii Mkuu kuhusu mabadiliko
yoyote katika taarifa za wamiliki wanufaika na kuweka adhabu ya ukiukwaji
wa maharti hayo.

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 Finance Act

Sehemu ya Thelathini na Saba ya Muswada inapendekeza kufanya

marekebisho kwenye Sheria ya Kodi ya Ongezeko la Thamani, Sura 148
ambapo kifungu cha 6 kinarekebishwa ili kumpa Waziri mamlaka ya
kusamehe kodi ya ongezeko la thamani kwa wawekezaji mahiri maalum
baada ya kuidhinishwa na Kamati ya Taifa ya Uwekezaji. Lengo la hatua
hii ni kufanikisha maendeleo ya sekta ya uwekezaji nchini na kuondoa
mgongano wa kisheria katika taratibu za utoaji wa vivutio vya kikodi kati
ya Sheria ya Uwekezaji na Sheria ya Kodi ya Ongezeko la Thamani.

Kifungu cha 11 kinarekebishwa ili kuongeza matrela na vichwa vya

magari ya mizigo kwenye orodha ya bidhaa za mtaji zinazopata ahirisho la
kodi ya Ongezeko la Thamani. Lengo la marekebisho haya ni kupunguza
gharama za uwekezaji na kuchochea maendeleo ya viwanda nchini.
Inapendekezwa kuongeza kifungu cha 55A ili kutoza kodi kwa kiwango cha
asilimia 0 kwenye bidhaa za mafuta ya kula yaliyochakatwa mara mbili
pamoja na mbolea zinazozalishwa nchini kwa kipindi cha mwaka mmoja
kwa lengo la kuleta unafuu kwa wazalishaji na walaji.

Kifungu cha 64 kinapendekezwa kurekebishwa ili kurahisisha

utaratibu wa usajili wa walipa kodi wanaotoa huduma za kidigitali bila ya
kuwa na makazi hapa nchini hivyo kuwezesha ukusanyaji wa kodi ya
ongezeko la thamani kwenye biashara zinazofanyika kwa njia ya mtandao.
Aidha, kifungu cha 94 kinarekebishwa ili kumuwezesha Waziri
kutengeneza kanuni kwa ajili ya kuweka utaratibu wa kushughulikia
mikopo mbadala. Marekebisho haya yanalenga kuweka usawa kayika
ushughulikiwaji wa mikopo mbadala na mikopo inayotolewa kwa utaratibu
wa kawaida, kuchachua ukuaji wa bidhaa nyingine za mikopo na kuweka
usawa katika ulipaji wa kodi.

Jedwali linarekebishwa katika Sehemu ya kwanza ili kusamehe kodi

ya ongezeko la thamani kwenye miti ambayo haijachakatwa kwa lengo la
kuchochea ukuaji wa sekta ya misitu na kuwa na usimamizi endelevu wa
rasilimali za misitu; kutoa msamaha wa kodi ya ongezeko la thamani
kwenye vifaa vya kupima kiwango cha maji na unyevunyevu na vifaa vya
utabiri wa hali ya hewa kwa lengo la kukuza utafiti na kuendeleza sekta ya
kilimo pamoja na kuimarisha shughuli za utabiri wa hali ya hewa nchini;
kusamehe kodi ya ongezeko la thamani kwenye mtindi na maziwa
yanayozalishwa kwa joto la juu na kudumu kwa muda mrefu (UHT Milk);
kusamehe kodi ya ongezeko la thamani kwenye vifungashio vya maziwa
kwa lengo la kutoa unafuu kwa watumiaji wa bidhaa za maziwa, kulinda
viwanda vya ndani na kuongeza ajira; kusamehe kodi kwenye hereni za
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 Finance Act

mifugo na vifaa vingine vya ufugaji vinavyotambulika kwa lengo la kuleta

ufanisi katika utambuzi, usajili na ufuatiliaji wa mifugo nchini; kusamehe
kodi ya ongezeko la thamani kwenye vanila ya kijani isiyochakatwa,
vyandarua vinavyotumika katika uzalishaji wa mbogamboga na maua
pamoja na vifaa vya uvuvi kwa lengo la kuchochea ukuaji wa sekta ya
kilimo na uvuvi nchini, vilevile kusamehe kodi ya ongezeko la thamani
kwenye kamba za katani kwa lengo la kukuza kilimo cha zao la katani na
kuongeza ajira.

Aidha, inapendekezwa kurekebisha Jedwali ili kufuta msamaha wa

kodi ya ongezeko la thamani kwenye simu janja za mkononi, vishikwambi
na modemu pamoja na huduma za kukodi ndege kwa lengo la kupanua wigo
wa kodi na kuongeza mapato ya Serikali.

Marekebisho mengine yanapendekezwa katika Jedwali ili kusamehe

kodi ya ongezeko la thamani kwenye magari yenye jokofu na vyumba vya
ubaridi kwa lengo la kuchochea ukuaji wa sekta ya kilimo, ufugaji na uvuvi
nchini; kusamehe kodi ya ongezeko la thamani kwenye vifaa vya machinjio
ili kuhamasisha uchakataji bora wa nyama nchini; kusamehe kodi ya
ongezeko la thamani kwenye malighafi zinazotumika kuzalisha mbolea
nchini kwa ajili ya kuwapa unafuu wazalishaji wa bidhaa hiyo nchini na
kulinda viwanda vya ndani na kusamehe kodi ya ongezeko la thamani
kwenye mashine za kutengeneza mbolea kwa lengo la kutoa unafuu kwa
wazalishaji wa mbolea na kuvutia uwekezaji nchini.

Sehemu ya Thelathini na Nane ya Muswada inapendekeza kufanya

marekebisho katika Sheria ya Mafunzo ya Ufundi Stadi, Sura ya 82 ambapo
kifungu cha 19 kinarekebishwa kwa lengo la kutoa motisha kwa waajiri
wanaowapa nafasi ya mafunzo kwa vitendo wahitimu wa vyuo vikuu chini
ya mpango wa TAESA katika maeneo yao ya kazi. Lengo la marekebisho
hayo ni kuongeza idadi ya wanufaika wa mafunzo hayo hivyo kuwawezesha
kupata ujuzi na uzoefu wa kazi kabla ya ajira.

Dodoma, MWIGULU LAMECK NCHEMBA MADELU

14th June, 2022 Minister for Finance and Planning

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