Dodoma — The government yesterday tabled the Finance Bill, 2021, which, among other things, seeks to authorise the minister responsible for Finance to grant tax exemption by issuing a Government Notice (GN) without the requirement of obtaining the approval of the Cabinet.
This is contained in the Bill which aims to amend 22 laws which were tabled in parliament yesterday by the Minister of Finance and Planning Dr Mwigulu Nchemba.
Dr Nchemba said the bill aims to amend various tax and other laws to enable the legal implementation of the State Budget for the financial year 2021/22 presented on June 10 this year.
He proposed amendments to section 10 of the Income Tax Act to authorise the minister responsible for Finance to grant tax exemption by issuing a Government Notice (GN) without the condition of obtaining approval of the Cabinet.
He explained that the tax exemptions are for projects implemented by donors through aid and credit agreements entered into between the two countries and the government with a clause that allows income tax exemptions.
"The purpose of this amendment is to expedite the implementation of projects funded by grants and loans whose implementation has been delayed waiting for the approval of the Cabinet," he said.
He also suggested projects funded by government funds and donor funds to be exempt from value-added tax (VAT) through the Commissioner General of the Tanzania Revenue Authority.
He said the initial process was to submit to the Minister of Finance for approval and issue a GN for each project.
Dr Nchemba noted that the aim of the move was to simplify and expedite granting exemptions rather than the current system.
He proposed amendments to the Taxation Systems Act, by adding a new clause to impose levies on each transaction to send or withdraw money in various amounts, depending on the value of the transaction involved.