Private schools entitled to pay tax- house of reps told

ZANZIBAR: PRIVATE schools in Zanzibar remains liable to tax payment as long as they operate as profit making entities, the House of Representatives heard here yesterday.

Deputy Minister of State, President’s Office, Finance and Planning Juma Makungu Juma informed the house that the country’s tax laws require every person or company in business to pay tax as per rules and regulations.

He explained that private schools with over 100m/- turnover pay corporate income tax at the rate of 30 per cent of the net profit while schools with less than 100m/- ceiling pay stamp duty at the rate of three percent of their gross sales.

The schools also pay four per cent of their monthly payrolls as skill development levy, the deputy minister said in his response to Pandani Representative Professor Omar Fakih Hamad who wanted to know the types of taxes to which private schools are subjected.

The legislator had questioned the rationale of subjecting private learning institutions, which he appreciated as highly valuable in supplementing the government efforts in provision of quality education in the country.

 

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