part ii amendment of the capital markets and ... - …

PART II AMENDMENT OF THE CAPITAL MARKETS ANDSECURITIES ACT, (CAP. 79)

PART III AMENDMENT OF THE ENERGY AND WATERUTILITIES REGULATORY AUTHORITY ACT, (CAP.414)

PART IV AMENDMENT OF THE EXCISE (MANAGEMENTAND TARIFF) ACT, (CAP. 147)

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

PART VII AMENDMENT OF THE LOCAL AUTHORITIESPENSIONS FUND ACT, (CAP. 407)

PART VIII AMENDMENT OF THE MOTOR VEHICLES (TAXON REGISTRATION AND TRANSFER) ACT, (CAP.124)

PART IX AMENDMENT OF THE NGORONGOROCONSERVATION AREA ACT, (CAP. 284)

PART X AMENDMENT OF THE NATIONAL PARKS ACT(CAP. 282)

PART XI AMENDMENT OF THE PARASTATALORGANISATION PENSIONS SCHEME ACT, (CAP.372)

PART XII AMENDMENT OF THE PUBLIC SERVICERETIREMENT BENEFITS ACT, (CAP. 371)

PART XIII AMENDMENT OF THE PUBLIC PROCUREMENTACT, (CAP. 410)

PART XIV AMENDMENT OF THE PROVIDENT FUND(GOVERNMENT EMPLOYEES) ACT, (CAP. 51)

PART XVI AMENDMENT OF THE SURFACE AND MARINETRANSPORT REGULATORY AUTHORITY ACT,(CAP. 413)

PART XVII AMENDMENT OF THE TANZANIA CIVILAVIATION ACT, (CAP. 80)

PART XVIII AMENDMENT OF THE TANZANIACOMMUNICATION REGULATORY AUTHORITYACT, (CAP. 172)

PART XIX AMENDMENT OF THE TANZANIA FOOD,DRUGS AND COSMETICS ACT, (CAP. 219)

PART XX AMENDMENT OF THE VALUE ADDED TAXACT, (CAP. 148)

[..~.~.~ ]President

[ q~ ..~~! .~?C?? ]An Act to impose and alter certain taxes, duties, fees and levies and

to amend certain written laws relating to imposition,collection, and management of public revenues.

PART IPRELIMINARY PROVISIONS

Conunence-ment

2. The provisions of various Parts of this Act shall be deemed to.have come into operation on the 1st day of July, 2008.

PART IIAMENDMENT OF THE CAPITAL MARKETS AND SECURITIES ACT, (CAP. 79)

3. This Part shall be read as one with the Capital Markets andSecurities Act hereinafter referred to as the "principal Act".

Coru.titutionCap.79

Additionof section9A

Constru-ctionCap. 413

AdditionofSection49A

Constru-ctionCap.147

Amend-ment ofsection124

4. The principal Act is amended by adding immediately aftersection 9 the following new section-

"PowersoftheMinister

9A. The Minister shall determine in respect of theAuthority, the amount of money which shall remain theproperty of the Authority for its budgetary purposes and theamount of money which shall be treated as public funds tobe credited to the Consolidated Fund."

PART IIIAMENDMENT OF TIlE ENERGY AND WATER UTILITIES REGULATORY

AUTHORITY ACT, (CAP. 413)

5. This Part shall be read as one with the Energy and Water UtilitiesRegulatory Authority Act hereinafter referred to as the "principal Act."

6. The principal Act is amended by adding immediately after section49 the following new section-

"Powersof theMinisterrespon-sible forfinance

49A.-(1) Upon approval of any annual or supplementarybudget, under section 49, the Minister shall cause the budgetto be submitted to the Minister responsible for finance.

(2) Subject to subsection (1), the Minister responsible forfinance shall determine in respect of the Authority the amountof money which shall be treated as public funds and creditedto the Consolidated Fund and the amount of money whichshall remain as funds of the Authority for its budgetarypurposes."

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

7. This Part shall be read as one with the Excise (Management andTariff) Act hereinafter referred to as the "principal Act" .

8. The principal Act is amended in subsection (2) of section 124 bydeleting the phrase "rate of 7%" and substituting for it the phrase "rate of10%".

9. The Fourth Schedule to the principal Act is amended by deletingthe rates of excise duty imposed on certain items and substituting forthem the following new rates-

Am::n:lmentof theFourthSchedule

HeadingNo.

H.S. CodeNo.

Tshs. 1,053.00per litre

Waters, including natural or artificialmineral waters and aerated waters, notcontaining added sugar or othersweetening matter nor flavoured; iceand snow.

Tshs. 54.00 perlitre

Waters, including mineral waters andaerated waters, containing added sugaror other sweetening matter orflavoured, and other non-alcoholicbeverages, not including fruit orvegetable juices of heading 20.09.

2202.10.00 - Waters, including mineral waters andaerated waters, containing added sugar orother sweetening matter or flavoured



Tshs. 329.00per litre

Tshs. 329.00per litre

Wine of fresh grapes, includingfortified wines; grape must other thanthat of heading 20.09.

6 No. 12 Finance 2008

Heading HS Code Description Unit Excise RateNo. No.

- Sparkling wine

2204.10.90 --other Tshs. 1,053.00per litre

- Other wine; grape must with fermenta-tion prevented or arrested by the additionof alcohol:

-- In containers holding 2 Ior less

2204.21.90 --- Other Tshs. 1,053.00per litre


- Other grape must

2204.30.90 --other Tshs. 1,053.00per litre

22.05 Vermouth and other wine of freshgrapes flavoured with plants or aromaticsubstances.

- In containers holding 2 Ior less



22.06 Other fermented beverages (for ex-ample, cider, perry, mead); mixtures offermented beverages and mixtures offermented beverages and non-alcoholicbeverages, not elsewhere specified orincluded.

2206.00.30 ----Beer made from 100% local unmalted Tshs. 194.00cereals per litre

HeadingNo.

H.s. CodeNo.

Undenatured ethyl alcohol of analcoholic strength by volume of lessthan 80% vol; spirits, liqueurs and other

2208.20.00 spirituous beverages.- Spirits obtained by distilling grape wineor grape marc

- Rum and other spirits obtained bydistilling fermented sugar-cane products

--- Distilled Spirits (e.g., Konyagi,Uganda Waragi)

Cigars, cheroots, cigarillos andcigarettes, of tobacco or of tobaccosubstitutes.

---without filter tip and containingdomestic tobacco exceeding 75%

---with filter tip and containing domestictobacco exceeding 75%






Tshs. 1,561. 00per litre



Tshs. 5,348.00per mil



8 No. 12 Finance 2008

Heading HS Code Description Unit Excise RateNo. No.

24.03 Other manufactured tobacco andmanufactured tobacco substitutes;"homogenised" or "reconstituted"tobacco; tobacco extracts and essences.

-- Smoking tobacco, whether or notcontaining tobacco substitutes in anyproportion

2403.10.10 ---cut ragltiller kg Tshs. 11,573.00per kg

27.10 - Petroleum oils and oils obtained frombituminous minerals (other than crude)and preparations not elsewherespecified or included, containing byweight 70% or more of petroleum oilsor of oils obtained from bituminousminerals, these oils being the basic con-stituents of the preparations, otherthan waste oils:

--- Residual oils:

2710.19.41 ---- Residual fuel oils(marine, furnace and Tshs. 97.00 persimilar fuel oils) of a Kinematic litreviscosity of 125 centistrokes

2710.19.42 ---- Residual fuel oils (marine, furnace Tshs. 97.00 perand similar fuel oils) of a Kinematic litreviscosity of 180 centistrokes

2710.19.43 ---- Residual fuel oils (marine, furnace Tshs. 97.00 perand similar fuel oils) of a Kinematic litreviscosity of 280 centistrokes

2710.19.49 ---- Other residual fuels Tshs. 97.00 perlitre

39.23 Article for the conveyance or packingof goods, of plastics---- Sacks and Bags (including cans)

3923.21.00 --of Polymer of ethylene Kg. 120

3923.29.00 --of Polymer of ethylene Kg. 120

2008 Finance No. 12 9

Heading H.S Code Description Unit Excise RateNo. No.

87.03 Motor car and other motor vehicles prin-cipally designed for the transport ofpersons (other than those of headingNo. 8702), including station wagons andracing cars.

--other vehicles with spark ignitioncombustion reciprocating piston engine.

8703.22.90 ---other u 5%

--of a cylinder capacity exceeding 1,500cc but not exceeding 3,000 cc

8703.23.01 of a cylinder capacity exceeding 1,500 cc u 5%but not exceeding 2,000 cc

8703.23.99 ---other u 10%

---of a cylinder capacity exceeding 3,000cc

8703.24.90 ---other u 10%

--other vehicles, with compressionignition internal combustion pistonengine (diesel or semi-diesel)

-- of a cylinder capacity not exceeding u1,500cc

8703.31.91 --- of a cylinder capacity not exceeding u NIL1,000cc.

8703.31.99 ---other 5%

-- of a cylinder capacity exceeding1,500cc but does not exceed 2,500cc

8703.32.91 ----of a cylinder capacity exceeding u 5%1,500 cc but not exceeding 2,000 cc

8703.32.99 ----other u 1(1'10

--- of a cylinder capacity exceeding u 5%2,500cc

8703.33.90 ---other u 10%.

Aditionof section9A




Amend-ment ofsection 3


PART VAMENDMENT OF THE GAMING ACT, (CAP. 41)

10. This Part shall be read as one with the Gaming Act hereinafterreferred to as the "principal Act".


"Powersof theMinister

64A. The Minister shall determine in respect of the Board,the amount of money which shall remain the property of theBoard for its budgetary purposes and the amount of moneywhich shall be treated as public funds to be credited to theConsolidated Fund. "

PART VIAMENDMENT OF THE INCONfE TAX ACT, (CAP. 332)

12. This Part shall be read as one with the Income Tax Act hereinafterreferred to as the "principal Act" .

13. Section 3 ofthe principal Act is amended by deleting the definitionof the word "turnover" and substituting for it the following new definition:"turnover" in relation to a business by a resident person for the year of

income, means an amount to be included in calculating the person'sincome under section 8 without deducting any amount underSubdivision D of Division I of Part II,"

(a) in subsection (1) by deleting the whole of paragraph (a)and substituting for it the following-

"(a) who has total income for the year of income or is acorporation which has a perpetual unrelieved lossdetermined under section 19 for the year of incomeand the previous two consecutive years of incomeattributable to tax incentives;";

(b) in subsection (3) by deleting the whole of paragraph(a) and substituting for it the following-

"(a) applying the relevant rates of income taxdetermined under paragraphs 1, 3(1) or 3(3)of the First Schedule as the case may be, tothe person's total income or turnover for theyear of income; and."

(c) by adding immediately after subsection (7) the followingnew subsection;

"(8) The income tax payable by a corporationwith perpetual unrelieved loss for threeconsecutive years of income under paragraph(a) of subsection (1) shall not apply to acorporation conducting agricultural business orengaged in the provision of health or education.


"Withho-lding ofincometax forothergoods andservices

83A. The Government shall withhold incometax at a rate of 2 per centum of the gross paymentin respect of the supply of goods and services tothe Government by a resident person who is not aholder of a Tax Identification Number.".

16. The principal Act is amended in section 117 by adding immediatelyafter subsection (9) the following new subsection-

"(10) Where a payer fails to pay an amount of tax specifiedin appointment notice within thirty days of the date-

(a) of service of such notice on him; or(b) on which any money comes into his hands or become

due by him to, his tax debtor,whichever event is the latter, and the payer has-

(i) not given a notification under subsection (6) of thissection; or

(ii) given such notification which has been rejectedby the Commissioner,

the provisions of this Act relating to the collection andrecovery of tax shall apply to the collection and recovery



Amend-ment ofsection1:27

Amend-ment ofthe FirstSchedule

of such amount as if it were tax due and payable by thepayer, the due date for the payment of which was thedate upon which such amount should have been paid tothe Commissioner under this subsection.".

(a) deleting paragraphs (a) and (b); and(b) inserting immediately after the word "to" appearing at the

end of the opening words the phrase "remit interest andpenalties under section 125(2)."

18. The principal Act is amended in the First Schedule by-(a) deleting the personal income tax rates imposed on paragraph

1(1) and substituting for them the following new rates-

'TOTAL INCOME RATE PAYABLE

Where total income does not exceed TShs.l,200,000/=.................................... NIL

Where total income exceeds TShs.l ,200,000/= but 15% of the amountdoes not exceed TShs.4,320,000/= ............ in excess of

TShs.l,200,000/=

Where total income exceeds Tshs. 4,320,000/= but Tshs. 468,000/= plusdoes not exceed Tshs. 6,480,000/= .............. 20% ofthe amount

in excess of Tshs.4,320,000/=

Where total income exceeds Tshs. 6,480,000/= but does Tshs. 900,000/= plusnot exceed Tshs. 8,640,000/= ................ 25% of the amount in

excess of Tshs.6,480,000/=

Where total income exceeds Tshs. 8,640,000/= ... Tshs.l,440,000/= plus30% of the amount inexcess of Tshs.8,640,000/="

(b) adding immediately after subparagraph (2) of paragraph 3the following new subparagraph:

"(3) Income of a corporation with perpetual unrelievedloss for three consecutive years attributable to taxincentives shall be taxed at the rate of 0.3 per centum ofthe turnover of the third year of perpetual unrelievedloss. "

19. The principal Act is amended in the Second Schedule by addingimmediately after item (t) of paragraph I the following new item-

"(u) amounts derived from gains on realization ofasset by a unit holder on redemption of a unit by a unittrust. "

Amend-ment oftheSecondSchedule

PART VIIAMENDMENT OF TIIE LOCAL AUTHORITIES PENSIONS FUND ACT, (CAP. 407)

20. This Part shall be read as one with the Local Authorities PensionsFund Act hereinafter referred to as the "principal Act".


21. The principal Act is amended by adding immediately after section Addition4 the following new section- of section

4A"TheFund tobe anagent oftheGovern-ment

4A.-(1) The Fund established under section 4 shall be anagent of the Government for the purpose of effecting paymentof terminal benefits to retirees on behalf of the Government.

(2) The Government shall remit to the Fund such amount offunds as would be sufficient to pay insured persons entitled to commutedpension gratuity and who, prior to becoming members of the Fund, wereGovernment employees.

. (3) Payment of benefits under this section shall be effected inaccordance with the procedures of the Government and shall not prejudicebenefits otherwise enjoyable under the Act.

(4) The Fund and the Government shall enter into an agency agreementfor purposes of stipulating procedures and modalities for carrying outresponsibilities of an agent and the Government.




Amend-'ment ofsection13

Additionof section13

(a) pay to the Fund an agency fee and initial cost at a rate oramount to be agreed between the Fund and the Governmentas stipulated in the agreement; and

(b) quarterly or monthly in advance, remit to the Fund suchfunds that would be paid out as pensions for the pensionersor their beneficiaries."

PART VIIIAMENDMENT OF TIIE MOTOR VEHICLES (TAXON REGISTRATION AND

TRANSFER) ACT, (CAP. 124)

22. This Part shall be read as one with the Local Authorities PensionsFund Act hereinafter referred to as the "principal Act".

23. The First Schedule to the principal Act is amended by-

(a) deleting the phrase "ninety thousand shillings (Shs. 90,000/=)" appearing at the end of paragraph (3) and substitutingfor it the phrase "one hundred twenty thousand shillings(Shs. 120,000/=)";

(b) adding immediately after paragraph (3) the following newparagraph-

"(4) In case of a motor-cycle, thirty five thousandshillings (35,000/=)".

PART IXAMENDMENT OF TIIE NGORONGORO CONSERVATION AREA ACT, (CAP.

284)

24. This Part shall be read as one with the Ngorongoro ConservationArea Act hereinafter referred to as the "principal Act" .

25. The principal Act is amended in subsection (7) of section 13 byinserting immediately after the word "shall" appearing in the secondline the phrase "subject to section 13A."

26. The principal Act is amended by adding immediately aftersection 13 the following section-

"Powersof theMinisterresponsibleforfinance

13A.-(1) Upon approval of annual or supplementarybudget under section 13, the Minister shall cause suchbudget to be submitted to the Minister responsible forfinance for approval.

(2) Subject to subsection (1), the Minister responsible for financeshall determine in respect of the Authority the amount of money whichshall be treated as public funds to be credited to the Consolidated Fundand the amount of money which shall remain as funds of the Authorityfor its budgetary purposes."

PART XAMENDMENT OF THE NATIONAL PARKS ACT, (CAP. 282)

27. This Part shall be read as one with the National Parks Act,hereinafter referred to as the "principal Act".

Construc-tionCap. 282

28. The principal Act is amended in subsection (7) of section 10 byinserting immediately after the word "shall" appearing in the second linethe phrase "subject to section lOA".



IDA"Powersof theMinisterresponsibleforfinance

10A-( 1) Upon approval of annual or supplementary budgetunder section 10, the Minister shall cause the budget to besubmitted to the Minister responsible for finance.

(2) Subject to subsection (1) the Minister responsible for financeshall determine in respect of the Trustee the amount of money whichshall be treated as public funds to be credited to the Consolidated Fundand the amount of money which shall remain as funds of the Trusteesfor its budgetary purposes."

PART XI. AMENDMENT OF THE P ARASTATAL ORGANISATIONS PENSIONS SCHEME ACT,

(CAP. 372)

30. This Part shall be read as one with the Parastatal OrganisationsPensions Scheme Act hereinafter referred to as the "principal Act".



IDA


Additionof Section31A

"The fundto be anagent oftheGovern-ment

6A.-(l) The Fund established under section 6 shall be theagent of the Government for purposes of effecting paymentof pension benefits.

(2) The Government pensioners who shall be subject of payment bythe agent shall include-

(a) pensioners in the Government Pension Register who are inreceipt of monthly pension and who had retired before the1st day of July, 2004;

(b) pensioners who were reinstated in the Government PensionRegister; and

(c) all employees who are currently contributing to the Fund andwho prior to the membership of the Fund were Governmentemployees.

(3) The Government shall remit to the Fund commuted pension, gratuityand monthly pension in respect of employees or their beneficiaries.

(4) The Fund shall enter into an agency agreement with theGovernment, which shall stipulate the procedures and modalities ofcarrying out the responsibilities of an agent and the Government.

(5) The Government shall pay to the Fund-(a) an agency fee and initial cost at a rate or amount agreed

upon between the Fund and the Government; and(b) quarterly or monthly in advance, such funds that would be

paid out as pensions for pensioners or their beneficiaries."

PART XIIAMENDMENT OF THE PUBLIC SERVICE RETIREMENT BENEFITS ACT,

(CAP. 371)

32. This Part shall be read as one with the Public Service RetirementBenefits Act hereinafter referred to as the "principal Act" .


"The Fundto bean agentofGOVlIfllll1fl1t

31A.-(1) The Fund established under section 31 shall bean agent of the Government for purposes of payment ofterminal benefits to retirees on behalf of the Government.

(c) public servants who retired by virtue of sections 16 and 17(3)before the first day of July, 2004 and whose terminal benefitsare yet to be paid; and

(d) pensioners whose monthly pension is calculated in accordancewith section 20(3).

(3) The Fund and the Government shall enter into an agency agreementfor purposes of stipulating procedures and modalities for carrying outthe responsibilities of an agent and the Government.

(4) The Government shall-(a) pay to the Fund an agency fee and initial cost at a rate or

amount to be agreed between the Fund and the Government;and

(b) quarterly or monthly in advance, remit to the Fund such fundsthat would be paid out as gratuities and pensions, for theretirees and pensioners or their beneficiaries".

PART XIIIAMENDMENT OF THE PUBLIC PROCUREMENT ACT, (CAP. 410)

34. This Part shall be read as one with the Public Procurement Acthereinafter referred to as the "principal Act".


Construc-tionCapAIO

Additionofsection25A

Constru-ctionCap.51


"Powersof theMinister

25A.-(1) Upon approval of an annual budget or anysupplementary budget under section 25 the Board shall submitsuch budget to the Minister for approval.

(2) Subject to subsection (1), the Minister shall determine in respectof the Authority the amount of money which shall be treated as publicfunds to be credited to the Consolidated Fund and the amount of moneywhich shall remain as funds of the Authority for its budgetary purposes. "

PART XIVAMENDMENT OF THE PROVIDENT FUND (GOVERNMENT EMPLOYEES)

(CAP. 51)

36. This Part shall be read as one with the Provident Fund (GovernmentEmployees) Act hereinafter referred to as the "principal Act" .


"TheFund tobe anagent ofGovern-ment

3A.-(l) The Fund established under section 3 shall be anagent of the Government for the purposes of payment ofterminal benefits to retirees.

(a) members of the Police Force and Prisons who have notcontributed to the Fund prior to the month of July, 1999 andwhose gratuities ought to be paid by the Treasury;

(b) teachers employed under the contract of service afterretirement;

(c) Members of Parliament, Regional Commissioners and DistrictCommissioners; and

(d) other Government employees who may be categorized assuch.

(3) The Fund shall receive and keep contributions from the Treasuryfor retirees referred to in subsection (2).

(4) The Fund shall enter into an agency agreement with theGovernment which shall stipulate procedures and modalities for carryingout responsibilities of an agent and the Government.

(a) pay to the Fund an agency fee and initial cost at a rate oramount to be agreed upon between the Fund and theGovernment; and

(b) quarterly or monthly in advance, remit to the Fund such fundsthat would be paid out as gratuities for the retirees or theirbeneficiaries. ".

PART XVAMENDMENT OF THE PORTS ACT, (CAP. 166)

38. This Part shall be read as one with the Ports Act hereinafterreferred to as the "principal Act. ".

39. The principal Act is amended in section 74 by adding immediatelyafter subsection (3) the following new subsections-

"(4) Upon approval of any annual budget or supplementarybudget under this section, the Minister shall cause the budget tobe submitted to the Minister responsible for finance .

(5) Subject to subsection (4), the Minister responsible forfinance shall determine in respect of the Authority the amountof money which shall be treated as public funds and credited tothe Consolidated Fund and the amount of money which shallremain as funds of the Authority for its budgetary purposes.".

Construc-tionCap.166




Constru-ctionCap.80


PART XVIAMENDMENT OF THE SURFACE AND MARINE TRANSPORT REGULAROTY

AUTHORITY ACT, (CAP. 413)

40. This Part shall be read as one with the Surface and MarineTransport Regulatory Authority Act hereinafter referred to as the"principal Act. "


"(6) Upon approval of annual or supplementary budget theMinister shall cause the budget to be submitted to the Ministerresponsible for finance.

(7) Subject to subsection (6), the Minister responsible forfinance shall determine in respect of the Authority the amountof money which shall be treated as public funds to be credited tothe Consolidated Fund and the amount of money which shallremain as funds of the Authority for its budgetary purposes.".

PART XVIIAMENDMENT OF THE TANZANIA CIVIL AVIATION AUrnORITY ACT,

(CAP. 80)42. This Part shall be read as one with the Tanzania Civil Aviation

Authority Act hereinafter referred to as the "principal Act."


"(6) Upon approval of any annual or supplementary budgetunder this section the Minister shall cause the budget to besubmitted to the Minister responsible for finance.

(7) Subject to subsection (6), the Minister responsible forfinance shall determine in respect of the Authority the amountof money which shall be treated as public funds and credited tothe Consolidated Fund and the amount of money which shallremain as funds of the Authority for its budgetary purposes.".

PART XVIIIAMENDMENT OF TIIE TANZANIA Cm.,,1MUNICATION REGULATORY AUTHORITY

ACT, (CAP. 172)

44. This Part shall be read as one with the Tanzania CommunicationRegulatory Authority Act hereinafter referred to as the "principal Act."


"(6) Upon approval of any annual or supplementary budget,under this section the Minister shall cause the budget to besubmitted to the Minister responsible for finance.

(7) Subject to subsection (6), the Minister responsible forfinance shall determine in respect of the Authority the amountof money which shall be treated as public funds to be credited tothe Consolidated Fund and the amount of money which shallremain as funds of the Authority for its budgetary purposes.".

PART XIXAMENDl\1ENT OF TIIE TANZANIA FOOD, DRUGS AND COSMETICS ACT, (CAP.

219)

46. This Part shall be read as one with the Tanzania Food, Drugs andCosmetics Act hereinafter referred to as the "principal Act).

47. The principal Act is amended in section 7-

(a) in subsection (4), by inserting immediately after the word "shall"appearing in the second line the phrase, " subject to subsection(4A)";

(b) by adding immediately after subsection (4) the following newsubsection-

"(4A) The Minister responsible for finance shall,determine in respect of the Authority, the amount of fundswhich shall be treated as funds of the Authority for itsbudgetary purposes to be kept in the General Fund and theamount of money which shall be treated as public funds tobe credited to the Consolidated Fund.".

Amend-mentof section47

Amend-mentofsection54





PART XXAMENDMENTOF THEVALUEADDEDTAXACT,(CAP. 148)

48.-(1) This Part shall be read as one with the Value Added Tax Acthereinafter referred to as the "principal Act." .

(2) Amendment of the First Schedule to the principal Act underparagraph (a) of section 49 shall come into operation on the I't day ofJanuary, 2009.

49. The First Schedule to the principal Act is amended-(a) by deleting the whole notes appearing immediately after item

2 and substituting for it the following-

"NotesFor the purposes of item I and 2-(a) goods are treated as exported from the United

Republic of Tanzania if they are delivered or madeavailable to an address outside the United Republicof Tanzania as evidenced by documentary proofacceptable to the Commissioner;

(b) all supplies of services are treated as being suppliedin the place where the supplier belongs as defined insubsection (4) of section 7 except supplies of services,which may be treated as exported, subject todocumentary proof acceptable to the Commissioneras follows-"(i) the supply of services and ancillary services

relating to cultural, artistic, sporting, scientific,educational, entertainment, fairs and exhibitions,including the supply of services of organizersof such activities shall be treated as beingexported only when such services are physicallycarried out outside the United Republic ofTanzania;

(ii) the supply of service of valuation of, and workon movable tangible property shall be treatedas being exported only when such services are

physically carried out outside the United republic ofTanzania;

(iii) the supply of ancillary transport activities suchas loading and unloading, handling and similaractivities shall be treated as being exported onlywhen such services are physically carried outoutside the United Republic of Tanzania;

(iv) the supply of services connected withimmovable property, including-(a) the services of experts and estate agents;(b) the provision of accommodation in the

hotel sector or in sectors with a similarfunction such as holiday camps or sitesdeveloped for use as camping sites;

(c) the granting of rights to use immovableproperty and services for the preparationand coordination of construction work,such as the services of architects and offirms providing on-site supervision,

shall be treated as being exported only whenthe immovable property is located outside theUnited Republic of Tanzania;

(v) the supply of services rendered by anintermediary acting in the name and on behalfof another person shall be treated as beingexported only when the underlying transactionis supplied outside the United Republic ofTanzania;

(vi) the supply of services of consultants, engineers,lawyers, accountants and other similar services,as well as data processing and the provision ofinformation, shall be treated as being exportedonly when such services are supplied to a personother than a related person who is establishedor has his permanent address or usually residesoutside the United Republic of Tanzania,provided that such services are not related tobusiness established or to be established in theUnited Republic of Tanzania;

Amend-ment oftheSecondSchedule

Amend-ment ofthe ThirdSchedule

(vii) the supply of telecommunication services, radioand television broadcasting services shall betreated as being exported only if effectiveenjoyment of such services takes place outsidethe United Republic of Tanzania. "

(b) by adding immediately after item 12 the following new item-

"13. The supply of sacks by a local manufacturer of sacks".

50. The Second Schedule to the principal Act is amended by-

(a) adding immediately after item 12 (3) the following sub-item-

"25. Burning Jelly-The supply of jelly oil used as burning energy.

26. Natural Gas-Compressed Natural Gas (CNG) and CNG cylinders"

27. The services supplied by a registered sugarcane growersassociation to its members for land preparation, cutting,loading, unloading and transportation of sugarcane fromfarms to sugar manufacturing factories.".

51. The Third Schedule to the principal Act is amended as follows-(a) in item 2 by-

(i) designating it as sub-item (1);(ii) adding immediately after sub-item (1) the following

new sub-item-"(2) The relief granted under sub-item (1) shall limit

the number of non-utility vehicles to the satisfaction ofthe Commissioner in relation to project plan submitted".

(b) in item 10 by-(i) deleting the phrase "in the execution of its functions and"

appearing immediately after the word "question" of sub-item (l)(b).

(ii) deleting sub-item (4) and substituting for it with thefollowing new sub-item-

"( 4) Notwithstanding the provisions ofparagraphs (b) and (c), the special relief providedthereby shall not include motor vehicles andhousehold consumables".

(iii) adding immediately after sub-item (4) the following sub-items:

"(5) The relief under this item shall be grantedupon submission of the proof that the goods orservices relieved are to be wholly and exclusivelyused for the purpose of the project.

(6) The registered religious charitablecommunity based or other non-profit drivenorganization or institution shall be required to submitto the Authority their annual plans detailing eachof the projects intended for implementation beforethe commencement of the Government fiscal year.

(7) The registered religious, charitablecommunity based or other non-profit drivenorganization or institution shall be obliged to accountfor the utilized relief on goods or services.";

(d) in item 13, by deleting the phrase "holding a special agreementwith the Government of the United Republic of Tanzania or"and

(e) by adding immediately after item 29 the following new item-

"30. The importation of ethanol, dyestuff andthickening agent by a local manufacturer of burningjelly."

Passed in the National Assembly on the 27" A~

................. ~.... . .Acting Clerk of the National Assembly

part ii amendment of the capital markets and ... - …

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