On 15th June 2023, the Bill was tabled to the National Assembly by the Minister for Finance and Planning, Hon. Dr. Mwigulu Nchemba during the government Budgetsession.
The tabled bill proposed various changes to the laws, herein below is the snapshot of the proposed amendment to the Value Added Tax Act, Cap 148
(a) Value Added Tax Registration Threshold:
- Increased from TZS. 100 million to TZS. 200 million Per Annum. The threshold is to be increased to TZS. 500 million in due course.
(b) Extension of the List of items Exempted from Value Added Tax:
Extension covers the following goods such as Inputs used to manufacture insecticides
and acaricides, namely;
- Benzalkonium Chloride (HS Code 2916.32.00), Glutaraldehyde (HS Code 2916.32.00), and imported prefabricated structures used by poultry farmers (HS Code 9406.20.90;
- Also, the list covers Precious Metals, Gemstones, and other precious stones at buying centers, mineral markets, and Gem houses designated by the Mining Commission under the Mining Act or refinery situated in Mainland Tanzania. As well as Inputs used to manufacture the following packaging material Polypropylene USP (Medical Grade) under the heading 3902, and Polyethylene Terephthalate USP under the heading 3907.
- Also, Item 19 of the Exempt Schedule to the Value Added Tax Act is to be amended to include moulds solely used by pharmaceutical manufacturers. The list also covers Item 20 of the Exempt Schedule to the Value Added Tax Act to be amended to include gaming odds and gaming software as a part of the gaming supply that qualifies for exemption.
- Also, the exemption includes on sale and lease of aircraft, aircraft engines, or parts by a local operator of air transportation.
(c) Deferment:
- Section 11 of the Value Added Tax Act is to be amended to include domestically manufactured capital goods in the list of capital goods qualifying for deferment. The Value added tax deferment on importation will cease to have effect after 3 years .
(d) Zero Rated:
- The introduction of zero-rated textile products manufactured using domestically produced cotton, for a period of one year. As well as fertilizer manufactured locally, for a period of one year.