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TANZANIA 2014 NATIONAL BUDGET REVIEW -FISCAL MEASURES

15 Jun

Here is the last part of the 2014 Tanzania National Budget review. Fiscal measures The proposed fiscal changes are as follows:

•• Reduce duty rate on:
— Buses under HS Code 8702.10.99 carrying more than
25 passengers, from 25% to 10% for a period of 1 year.
— Papers under HS Codes 48.05.11.00, 4805.12.00 and
4805.30.00 only, from 25 % to 10 %.
•• Increase duty rate on:
— Chemical based (petroleum) aerosol spray under HS Code
3808.91.39 from 10% to 25%.
•• Grant duty exemption on:
— Machinery spares and inputs for use in development and
generation of wind and solar energy.
— Importation of Electronic Fiscal Devices for a period of one
year (Tanzania only).
— Importation of goods used in the manufacture of gas
cylinders.
•• CET rate:
— Extend the stay of application of the CET rate of 35% on
wheat grain under HS Codes 1001.90.10 and 1001.99.90,
and apply a CET rate of 10 % for the period of one year.
•• Continue to grant duty remission to:
— Soap manufacturers using LABSA raw materials under HS
Code 3402.11.00; HS Code 3402.12.00 and HS Code
3402.19.00, from 10% to 0% for a period of one year.
— The Armed Forces Canteen Organisation for another year.
•• Duty exemption
— Remove duty exemption on splints used in manufacturing
matches.
Miscellaneous
•• Taxes due on the importation of petroleum products must be
remitted on importation, rather than 45 days later.
•• The removal of cement from the list of deemed capital goods
which are tax exempted under the Tanzania Investment Centre.
•• An increase in the minimum capital requirement for foreign
investors through Tanzania Investment Center from US$ 20
million to US$ 50 million.
•• The amendment of the Business Licensing Act, No. 25 of 1972 to
enable the Government to impose new business licensing fees.
•• Reductions of the export levy on raw hides and skins from
90% or TZS 900 per kilogram to 60% or TZS 600 per kilogram,
whichever is the higher.
•• The amendment of the Vocational Education and Training Act,
CAP 82, in order to include additional institutions in the list of
beneficiaries.

Financial Sector
•• Launching of the National Financial Inclusion Framework (NFIF).
•• Tanzania Agricultural Development Bank (TADB) is established.
It’s operationalization is in progress.
•• Growth in the number of Banks from 51 in 2013 to 53 in 2014.
and insurance companies from 28 in 2013 to 30 in April 2014.
•• Capital requirement for community and commercial banks
remain unchanged – compliance is expected by 2015.

Infrastructure Development
Transport infrastructure
•• Total budget of TZS 2,109.0 billion has been set aside for
procurement of wagons, rehabilitation of the central railway line
and for the construction and rehabilitation of roads and bridges.
•• Infrastructure development is geared towards reducing
congestion in urban areas, costs of transport and transportation
of goods and services.
Electricity
•• TZS 90 billion set for construction of Kinyerezi I gas fired
electricity generation plant.
•• TZS 290.2 billion is for Rural Electrification Agency (REA) for
distribution of electricity in rural areas.
Oil and Gas
•• TZS151billion set for the completion of gas pipeline from Mtwara
to Dar es Salaam.
•• Introduction of new natural gas laws.
Agriculture
•• Agriculture created 130,974 jobs.
•• Budget set aside a total of TZS 1,084.7 billion for strengthening
irrigation infrastructure, construction of warehouses and markets
and to create available loans for promotion of food and cash
crops production.
Human Resource Development
Education
•• Government plans to support youth skills development in oil and
gas courses in the country and abroad. Currently 124 students
will be financed by the Government and 35 students will be
awarded scholarships by Development Partners.
Health
•• Total of TZS 1,588.2 billion has been set aside for procurement
of medicines, prevention of epidemic diseases, and immunization
for children, construction of hospitals and dispensaries and HIV
and malaria control.
Water and sanitation
•• Total of TZS 665.1 billion has been set aside to improve urban
and rural water infrastructure which includes continuing with
the construction of 10 water wells in every Local Authority.

 

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