Bill intends to enhance economic growth

THE Finance Bill 2023 is now awaiting Presidential assent for it to become an Act of Parliament.

This is after the National Assembly, for the second time, debated and passed the crucial Bill, here on Monday.

The endorsement of the Bill will see the proposed changes in prices of different commodities coming into effect.

While presenting budget estimates a week ago, Finance and Planning Minister, Mwigulu Nchemba announced the government’s plans of hiking taxes on beers, cigarettes and gambling machines.

This would also entail an increase in road and fuel tolls to raise additional revenue and promote growth.

Among other things, the Bill intends to enhance economic growth particularly on strategic sectors including industries, agriculture, livestock, fisheries, energy and transport infrastructure as well as education and health sectors with a view to improving productivity of Tanzanians.

According to Dr Nchemba, the measures further intend to improve domestic revenue mobilisation and tax administration.

“It also proposes to amend other written laws with a view to enhance the collection, management of public revenues and improving business Environment,” the Minister said.

For instance, part two of the Bill proposes to amend the Copyright and Neighbouring Rights Act, Cap. 218 in section 48A by imposing a levy of 1.5 per cent on vinyl, mini disc, compact disk, digital versatile disk and Secure Digital(SD) memory.

The aim of the amendment is to enhance enforcement of copyright, according to the Finance Bill.

Further, part three of the Bill proposes to amend the Electronic and Postal Communications Act, Cap. 306, whereby section 164A is proposed to be repealed by removing airtime levy.

The objective of the amendment is to promote cashless economy.

Section 124(5A) and (5B) is further proposed to be amended by introducing excise duty rate on imported hybrid passenger motor vehicles aged more than five years.

The purpose of the amendment is to discourage dumping and safeguard the safety of passengers.

Section 137(3) is proposed to be amended by adding the requirement of a tax payer to provide information relating to service rendered.

“The objective of the amendment is to improve taxpayer records,” the Bill reads in part.

Part five of the Finance Bill proposes to amend the Export Tax Act, Cap. 196, whereby section three is proposed to be amended by exempting 80 per cent of the export levy on raw hides and skin exported by investors in Export Processing Zones (EPZ).

This seeks to reduce cost of exporting raw hides and skin and promote foreign market.

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