Court drops petition against 2024 Finance Act

DAR ES SALAAM: THE High Court in Dar es Salaam has dismissed the constitutional petition filed by two cement manufacturing companies challenging the Finance Act of 2024.

The petitioners, Amsons Industries (T) Limited and Fortune Cement (T) Limited, sought to contest the imposition of an industrial levy on imported goods, including clinker, a key component in cement production.

Judge Hamidu Mwanga ruled against the petitioners after upholding the preliminary objection raised by the Minister of Trade and Industries and the Attorney General, the respondents, on the grounds of the petition’s competence.

“(…) the petition is in bad shape. It is, therefore, vexatious and frivolous. …the petition is struck out. Each party is to bear its costs, and it is ordered accordingly,” the judge stated in a ruling delivered recently.

The petitioners sought a declaration that the government’s introduction of the industrial levy on goods, including cement clinker, in the Finance Act of 2024 amending Section 18A (1) and (2) (Item 7 of the Schedule) of the Import Control Act was unconstitutional.

They argued that the levy was biased, unilateral, and discriminatory, violating their rights under Articles 13(2), 21(2), and 22 of the Constitution, particularly their right to work, earn a livelihood, and participate in decisions affecting their welfare.

The judge explained that the petitioners were challenging the government’s action in introducing the legislation, which led him to refer to Section 4 of the Interpretation of Laws Act.

This section defines the term “act” as used in legal prayers and distinguishes between “act” as a verb (action) and “Act” as a formal piece of legislation or an Act of Parliament.

The judge noted that the term “act,” as used in the petitioners’ prayers, was intended to refer to government actions, not an Act of Parliament.

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The judge agreed with the respondents’ counsel, stating that the petitioners’ challenge was related to the government’s actions, which could be addressed in another forum, rather than challenging an Act of Parliament directly.

The petitioners, Amsons Industries (T) Limited and Fortune Cement (T) Limited, are incorporated in Tanzania and operate cement grinding plants near Dar es Salaam.

Amsons produces the Camel Cement brand in the Mbagala area, while Fortune Cement manufactures the Diamond Cement brand in Mkuranga, Coast Region.

The petition stemmed from the petitioners’ assertion that clinker is essential for cement production, and its availability is crucial to both production and pricing. Since their factories do not produce clinker, they rely on importing it through the Dar es Salaam Port.

The petitioners further claimed that, despite supporting the government’s efforts to promote local content and industrialisation, the imposition of the levy was unconstitutional.