Africa-Press – Tanzania. THE Parliament has endorsed a written Laws Miscellaneous Amendments, which among others intends to protect farmers who have been affected by the income tax deducted from farmers’ produce.
Attorney General (AG), Mr Eliezer Feleshi tabled the bill in Parliament on Thursday, which was later passed by Members of Parliament. It proposes amendments to three laws, namely Income Tax Act, (Cap. 332), the Tax Administration Act, (Cap. 438) and the Value Added Tax Act, (Cap. 148). With the amendments of the Income Tax Act, Cap. 332 , the bill intends to bring changes with the aim of removing the two per cent withholding tax on agricultural, fishery and livestock products.
The AG said the proposed amendment intends to protect farmers who have been affected by the income tax deducted from farmers’ produce, thus to benefit more from farming.
Moreover, the Parliament also endorsed and amended the Tax Administration Act, Cap. 438 by adding a new section 7A that requires tax laws to be applied without prejudicing agreements that have been approved by the Cabinet.
Mr Feleshi said the amendments intend to provide smooth and expeditious implementation of agreements entered by the government that provides for the execution of special arrangements, and to create favourable conditions for performance of government projects.
Where an agreement provides for special arrangement relating to tax laws and the said agreement has been approved by the Cabinet, the application of such tax laws shall not prejudice the implementation of such agreement to the extent of such arrangement.
“The provisions shall apply to an agreement for implementation of strategic project of which the Government is a party. An agreement under this section shall provide for the type, scope and the beneficiary of such arrangement” said the Attorney General.
The AG said that the Value Added Tax Act, Cap. 148 section 6 is amended to provide for VAT exemption on imported raw materials used to manufacture natural gas cylinders.
The aim of the amendment is to stimulate the domestic use of natural gas in compliance with the Paris Agreement Treaty on Climate Change (COP21) which provides for reduction of global warming.
Furthermore section 11 is amended to allow deferment tax on trailer manufacturing industries in order to promote investments.
For More News And Analysis About Tanzania Follow Africa-Press
