DODOMA: THE government has presented a bill in parliament, proposing the enactment of the Tanzania Investment Act of 2024 with the aim of improving the investment environment in Tanzania and strengthening the institutional system for the coordination and management of investments in the country.
Along with strengthening the country’s investment conditions, the bill proposes the merger of the Tanzania Investment Centre (TIC), the Export Production Zone Authority (EPZA), and the establishment of an authority to encourage investment and special economic zones.
The bill was read in parliament for the first time yesterday by the Minister of State in the President’s Office (Planning and Investment), Professor Kitila Mkumbo.
“To streamline operations and reduce redundancies, a 2023 performance review highlighted the need to merge the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA).
“These two institutions were found to have overlapping functions, leading to increased operational costs. This bill proposes the creation of a unified authority to handle all investment-related matters and will repeal the Tanzania Investment Act of 2022, the Export Processing Zones Act of 2002 and the Special Economic Zones Act of 2006,” Prof Mkumbo said.
The new authority will be established as an independent government agency known as the Tanzania Investment and Special Economic Zones Authority. This authority will have the legal capacity to continue existing indefinitely (perpetual succession) and will be represented by a common seal.
In its capacity as a legal entity, the Authority will have the power to own assets including both tangible assets (like land, buildings and equipment) and intangible assets (like intellectual property), engage in legal proceedings the Authority can sue or be sued in a court of law.
The authority can also enter into contracts, form legally binding agreements with other parties and perform any lawful act which means the Authority can undertake any action necessary to fulfil its objectives under the law.
Prof Mkumbo said it also establishes a National Investment Development Committee that will be responsible for providing guidance and direction for the country in matters of investment and approving plans and strategies to develop investment in accordance with the country’s priorities at the relevant time and recommending additional incentives for strategic investors.
He said that the bill proposes to establish conditions for the establishment of a land bank which will be a database that will store information about land available in various parts of the country.
Prof Mkumbo also said that the Bill proposes to amend the laws of the Land Law, the Law on Employment Management for Foreign Nationals, the Income Tax Law, the Value Added Tax Law, the Goods Tax Law and the Road Tolls Law and Oil.
“The proposed amendments involve recognising the newly established Authority in these laws, replacing the abolished institutions and improving the provisions that grant the Minister for Finance the power to waive taxes based on recommendations from the National Investment Development Committee,” he said.
