Tax News Update    Email this document    Print this document  

Executive summary

On 10 June 2021, Tanzania’s Minister for Finance and Planning presented the 2021/22 budget.

On 12 June, the Tanzanian Parliament passed the Finance Bill, 2021 (the Bill) which is subject to the President’s assent to become a law.

This Alert summarizes key changes included in the Bill.

Detailed discussion

Income Tax Act, CAP 332

The Bill amends Paragraph 2(2) of the First Schedule to the Act to reduce the income tax rate from 9% to 8% for the lowest taxable employment income band and adjustment of income brackets as follows:

New tax rates

The Bill amends Section 3 to expand the threshold for creating a permanent establishment whereby an agent, other than an independent agent, acting on behalf of another person shall be deemed to create a permanent establishment for such other person if:

• The agent other than an independent agent has and habitually exercises authority to conclude contracts or issues invoices on behalf of that other person, unless his activities are limited to the purchase of goods or merchandise for that other person.
• The agent other than an independent agent has no authority to conclude contracts, but habitually maintains stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of that other person.
• The agent other than an independent agent habitually secures orders, wholly or almost wholly for that other person or for the enterprise and other enterprises controlling, controlled by, or subject to the same common control, as that of that other person.

The Bill amends Section 4(5) to impose income tax for each year of income on an individual with small scale mining operations whose turnover does not exceed TZS100 million (app. US$ 43,000) per annum.

Section 10 is amended to grant powers to the Minister for Finance to provide an income tax exemption without seeking approval from the Cabinet on: 

• Strategic projects with an income tax liability of up to TZS1 billion (approximately US$430,000)
• Grant agreements or concessional loan agreements between the Tanzanian Government and a donor or lender where such agreement provides for an income tax exemption

The Bill also amends Section 65N(1) to grant a capital allowance on a straight-line basis at the rate of 5% per annum on assets owned and employed by a person on an international pipeline.

The Bill introduces Section 65N(1A) to define an “international pipeline” to mean a cross-border pipeline for transportation of crude oil from a foreign country to a port facility in Tanzania from which such crude oil is exported.

Section 79 is amended to require an individual with small scale mining operations whose turnover does not exceed TZS100 million (approximately US$43,000) per annum to pay income tax at the time of selling minerals at Mineral and Gem Houses or buying stations designated by the Mining Commission under the Mining Act.

The Bill introduces Section 83B(1) to impose withholding tax on payments made by a resident corporation in respect of agricultural, livestock and fishery products supplied by a resident person in the course of conducting a business.

The Bill also introduces Section 83B(2) to exclude from withholding tax payments made by resident agricultural marketing cooperative societies and cooperative unions in respect of agricultural, livestock and fishery products supplied by a resident person in the course of conducting business.

Section 84(2) is amended to oblige every withholding agent to stipulate the Taxpayer Identification Number (TIN) of a taxpayer when completing a withholding tax statement for a calendar month.

The Bill introduces Paragraph 2(4) to the First Schedule of the Act to impose income tax at the rate of 3% of the sales value of minerals on an individual with small scale mining operations whose turnover does not exceed TZS100 million annually.

In addition, the Bill introduces Paragraph 1(1) to the Second Schedule of the Act to exempt from income tax interest derived by a person from Government bonds issued and listed on the Dar es Salaam Stock Exchange (DSE) from 1 July 2021. Previously, the exemption from income tax applied only to interest derived from long-term bonds with a maturity period of not less than three years which were issued and listed on the DSE in the fiscal year 2002/03.

Value-Added Tax, CAP 148

The Bill amends Section 3 in relation to a taxable supply of goods between Tanzania Zanzibar and Mainland Tanzania such that:

• Where taxable goods are purchased from Tanzania Zanzibar on which value-added tax (VAT) is paid in Tanzania Zanzibar at a rate which is the same as the VAT rate applicable in Mainland Tanzania, the VAT paid shall be deemed to have been paid in Mainland Tanzania and no additional VAT shall be payable in Mainland Tanzania at the time of importation.
• Where taxable goods are purchased from Tanzania Zanzibar on which VAT is paid in Tanzania Zanzibar at a rate which is lower than the VAT rate applicable in Mainland Tanzania, the difference in the VAT shall be deemed to be unpaid and shall be payable in Mainland Tanzania at the time of importation.
• Where taxable goods are supplied directly by a taxable person in Mainland Tanzania to a taxable person in Tanzania Zanzibar, VAT shall be collected in Mainland Tanzania by the Tanzania Revenue Authority (TRA) on behalf of the Zanzibar Revenue Board and TRA shall remit the VAT to the Tanzania Zanzibar Treasury.

Section 6 is amended to empower the Commissioner General (CG) of the Tanzania Revenue Authority to grant an exemption from VAT, upon an application by an applicant in the prescribed form, on:

• Importation of raw materials to be used solely in the manufacture of long-lasting mosquito nets
• Importation by or a supply to a Government entity (subject to an agreement providing for VAT exemption on goods and services) of goods or services to be used solely for the implementation of a project funded by any of the following:
  • The Government
  • A concessional loan, non-concessional loan or grant through an agreement between the Government of the United Republic and another government, donor or lender of concessional loan or non-concessional loan
  • A grant agreement duly approved by the Minister in accordance with the provisions of the Government Loans, Grants and Guarantees Act entered between local government authority and a donor
• Importation or supply of goods or services for the relief of natural calamity or disaster
• Importation by or a supply of goods or services to an entity having an agreement with the Government of the United Republic for the purpose of operating or executing a strategic project approved by the Cabinet (subject to an agreement providing for VAT exemption on goods and services)
• Importation by or a supply of goods or services to a non-governmental organization (NGO) having an agreement with the Government of the United Republic (providing VAT exemption on goods and services) solely for project implemented by the respective NGO

The Bill amends Section 6(5) to empower the CG to make regulations prescribing the manner of applying for, and granting and monitoring utilization of a grant of exemption from VAT.

It also introduces Section 6(7) to define an applicant who can apply to the CG for a grant of exemption from VAT to mean:

• A local manufacturer of long-lasting mosquito nets with a performance agreement with the Government
• A government entity
• A local government authority
• A non-governmental organization
• An entity with an agreement with the Government for operating or executing a strategic project

Section 11 is amended to limit capital goods eligible for deferment of VAT to goods classifiable under Chapters 84, 85, and 90 of Annex 1 to the Protocol on the Establishment of the East African Community Customs Union provided that the goods are not imported for the purpose of resale in the ordinary course of carrying on an economic activity, whether or not in the form or state in which the goods were imported.

Section 55A is repealed to abolish the zero-rating of a supply of taxable goods manufactured in Mainland Tanzania by a manufacturer in Mainland Tanzania to a purchaser registered for VAT in Tanzania Zanzibar and who does not effectively use or enjoy the supplied goods in Mainland Tanzania.

The Bill amends Section 59(3) to zero-rate the supply of transportation and incidental services to an international pipeline.

In addition, Section 59(4) is amended to define an “international pipeline” to mean a cross-border pipeline for transportation of crude oil from a foreign country to a port facility in the Tanzania from which such crude oil is exported to another foreign country.

Section 94 is amended to empower the Minister for Finance and Planning to make regulations prescribing the manner of remission of VAT collected on taxable goods supplied to a registered taxable person in Tanzania Zanzibar.

Part I of the Schedule to the Act is amended to grant exemption from VAT on importation or supply of the following:

• Aluminum (HS code 7310.29.90)
• Stainless steel (HS code 7310.10.00)
• Milk cans (HS code 7612.90.90)
• Crude oil (HS code 2709.00.00)
• Smart phones (HS code 8517.12.00)
• Tablets (HS code 8471.30.00 or 8517.12.00)
• Modems (HS code 8517.62.00 or 8517.69.00)

The Bill amends Part I of the Schedule to the Act to exempt from VAT a supply of insurance for livestock farming.

The Bill also amends Part I of the Schedule to the Act to abolish the exemption from VAT on supplies and imports of solar lights.

The Bill amends Part II of the Schedule to the Act to grant an exemption from VAT on the importation of:

• Contactless smart cards and consumables by the National Identification Authority (HS code 3921.11. 90)
• Cold rooms by a person engaged in horticulture (HS code 9406.10.10 and 9406.90.10)
• Precious minerals and mineral concentrates by any person for processing, smelting or sale in the Mineral and Gem Houses or buying stations designated by the Mining Commission (N/A)
• Artificial grass for football pitches located in city councils authorized by the Tanzania Football Federation (HS code 5703.30.00 and 5703.20.00)

Tax Administration Act, CAP 438

Section 22 is amended to oblige each person who becomes potentially liable to tax by reason of carrying on a business, investment or employment shall apply for a TIN within 15 days from the date of commencing the business, investment or employment.

The Bill amends Section 28A(1) to allow the office of the Tax Ombudsman Service to review and address any complaint by a person regarding service, procedural or administrative matter arising in the course of administering tax laws by the CG or staff of the TRA. Currently, the review is limited to complaints by a taxpayer.

Section 28(B)(1) is amended to allow the Minister for Finance and Planning to appoint a person with competent knowledge and experience in tax administration matters to be a Tax Ombudsman. Previously, the appointment was limited to a person with competent knowledge in tax administration.

Section 28B(3) is also amended to limit recommendations of the Tax Ombudsman that are submitted to the Minister for Finance and Planning to directives of the Minister. Previously, the recommendations were submitted to the Minister for deliberation and directives.

The Bill removes Section 28B(4) which stipulated that recommendations of the Tax Ombudsman are not binding on a taxpayer whose complaint or matter formed the subject matter of such decision or recommendation.

The Bill amends Section 28D to restrict the Tax Ombudsman from reviewing a tax decision or objection decision of the CG.

It also amends Section 29 to oblige a taxpayer to submit to the CG an official translation of any document or information that is not in English or Kiswahili within 14 days from the date of receiving a written request of the CG.

Section 35 is amended to oblige every taxable or person liable to tax who maintains documents in electronic form, to maintain in Tanzania a primary data server for storage of documents in electronic form. The CG shall, without prior notice, be granted free access to the primary data server as prescribed by the law.

The Bill introduces a definition of a ”primary data server” to mean a server which stores data that is created or collected by a taxable or liable person in the ordinary course of business.

The obligation to maintain a primary data server shall come into effect 12 months from 1 July 2021.

Section 39 is amended to require an application to the CG for extension of the time to file a tax return to be made not less than 15 days before the due date for filing the return. Previously, an application for extension of time to file a tax return had to be made within 15 days before the due date for filing the return.

The Bill amends Section 44(1) to empower the CG to oblige a person whether or not liable to tax to produce any information, to attend any place and time for purposes of being examined by the CG, or to produce any document in his control during the examination.

Section 51(7) is amended to restrict payment of a tax deposit to objections against a tax decision of the CG relating to a tax assessment or a notice of liability to pay tax. Previously, a tax deposit was required to be paid before admission of an objection to any tax decision of the CG.

Section 56 is amended for property rates to be payable at the time of payment of electricity.

The Bill amends Section 70 to remove powers granted to the Minister for Finance and Planning to issue regulations on the eligibility, duration and procedure for accessing remission of interest and penalties. The power to remit interest and penalties reverts to the discretion of the CG.

Amendment of Section 74 requires a person to repay to the CG, upon demand, tax that is short-levied or erroneously refunded.

The Bill amends Section 85(3) to expand the offense for impeding the administration of a tax law to include: (i) failure to produce an official translation of a communication or document which is in a language other than English or Kiswahili; and (ii) failure to maintain a primary data server in Tanzania by a taxable or person liable to tax who maintains documents in electronic form.

Section 92A is repealed to abolish the powers of the CG to collect any fine or penalty imposed on a person under any tax law by a court in a criminal proceeding. Penalties and fines imposed by courts in relation to tax offenses shall be collected by and deposited to the Judiciary.

• The Bill amends the Third Schedule of the Act to require a TIN in relation to the following:
• Worker’s Compensation Fund (WCF) for registration of employee
• Occupational Safety and Health Authority (OSHA) for registration of employee
• Government, company or individual for employment

Vocational, Educational and Training Act, CAP 82

The Bill amends Section 14 to increase the minimum number of employees required for an employer to account for Skills and Development Levy (SDL) from 4 to 10.

It also imposes SDL at a rate of 0.4% on the same value of minerals on an individual employer engaged in a small-scale mining operation. The levy is payable at the time of selling minerals and payment of royalty at Mineral and Gem Houses or at buying stations designated by the Mining Commission under the Mining Act.

Section 19(1) is amended to exempt from SDL religious institutions whose employees are solely employed to provide public health.

Gaming Act, CAP 41

Section 31A is amended to reduce tax on all sports betting wins from 20% to 15%.

Furthermore, the Second Schedule to the Act is amended as follows:

• Sports betting: An increase of the gaming tax from 25% to 30% of gross gaming revenue (GGR). In addition, 5% of the tax will be allocated to the Sports Development Fund.
• Virtual games: An introduction of 10% gaming tax on GGR.
• Gaming products licensed under pilot study: An introduction of 10% gaming tax on GGR.

Excise (Management and Tariff) Act, CAP 147

The Bill amends Section 124 to impose excise duty at the rate of 10% on: (i) imported used motor vehicles that are more than three years (Heading no. 87.11); and (ii) charges and fees paid to a licensed payment system provider for money transfer and payment services.

The Fourth Schedule to the Act is amended to adjust rates for excise duty on a variety of goods.

Local Government Authorities (Rating) Act, CAP 289

• Section 16(1) is amended to increase property rates as follows:

Local Government Finance Act, CAP 290

The Bill amends Section 16 to exclude corporations that pay city service levy (CSL) from being liable to pay produce cess on agricultural produce or other produce unless the produce is produced by another person other than the corporation. CSL is payable at a rate of 0.3% of turnover net of VAT and excise duty. Produce cess is levied at 3% on food and cash crops and 5% on forest products.

A corporation that is liable to pay CSL in one district council shall pay the CSL in the council in which the corporation produces agricultural produce or other produce.

A corporation that is liable to pay CSL in one district council shall pay produce cess in the council in which the corporation purchases agricultural produce or other produce.

Stamp Duty Act, CAP 189

Amendment of the Schedule to the Act to adjust rates for stamp duty on a variety of instruments including articles of association, conveyances, partnership documents, and power of attorney, among others.

Changes in other laws

The Bill introduces the following changes:

• Amendment of the Companies Act, Cap. 212 to restrict companies from issuing share warrants in respect of any shares with effect from 1 July 2021. A bearer of any issued share warrant is obliged to surrender the share warrant to the respective company for cancellation within 12 months from 1 July 2021. Any share warrant that is not surrendered within the stipulated period shall be deemed to be cancelled.

• Amendment of the Motor Vehicle (Tax Registration and Transfer) Act, Cap. 124 to reduce the personalized plate number registration fee from TZS10 million to TZS5 million for every three years.

• Amendment of the National Payments Systems Act, Cap. 437 to introduce a levy on mobile money transfer transactions. The Minister for Communication and Information Technology shall be empowered to issue regulations prescribing the manner and modality under which the levy shall be collected and accounted for.

• Amendment of the Electronic and Postal Communications Act, Cap. 306 to introduce a levy on mobile airtime. The Minister for Communication and Information Technology shall be empowered to issue regulations prescribing the manner and modality under which the levy shall be collected and accounted for.

• Amendment of the Non-Citizens (Employment Regulation) Act, Cap. 436 to impose a penalty of TZS500,000 per month for failure to submit monthly returns to the Labor Commissioner. Previously, the law required an employer to submit bi-annual returns disclosing the number of citizens and non-citizens and their particulars.

• Amendment of the Road and Fuel Tolls Act, Cap. 220 to increase the road and fuel toll imposed on petrol and diesel from TZS263 to TZS363. In addition, to increase fuel levy imposed on petrol and diesel from TZS313 per liter to TZS413 per liter.

• Amendment of the Tax Revenue Appeals Act, Cap. 408 to allow any party to an appeal to apply, at any stage of the proceedings before a judgment is delivered by the Tax Revenue Appeals Board (TRAB) or the Tax Revenue Appeals Tribunal (TRAT) as the case may be, for the appeal to be settled amicably through mediation. TRAB or TRAT shall require the parties to report the outcome of the mediation within a specified time upon which a final order shall be issued based on the written settlement agreement signed by both parties.

• Amendment of the Government Loans, Grants and Guarantees Act, Cap. 134 to empower the Minister for Finance and Planning to, upon approval by the Cabinet, issue a guarantee for and on behalf of the Government to an institution or company to borrow an amount of money not exceeding the value of shares of the Government in an institution or company operating a strategic project.

East African Community Customs Management Act (EACCMA), 2004¹

The Ministers for Finance from the East African Community (EAC) Partner States agreed to effect changes in the Common External Tariff (CET) for the financial year 2021/22 and to continue to implement some measures that were implemented in the financial year 2020/21 as follows:

• To grant a stay of application of the EAC CET rate of 25% and apply an import duty rate of 10% for buses for transportation of more than 25 persons (HS codes 8702.10.99 and 8702.20.99) imported for rapid transportation projects for one year. The aim is to decongest the cities and ease the transportation system within the respective countries.

• To grant a stay of application of the EAC CET rate of 10% and apply an import duty rate of 25% for one year on cotton yarns (Heading nos. 52.05; 52.06; and 52.07). The aim is to increase local production of cotton yarns by increasing value addition of cotton and enhancing the cotton to cloth strategy.

• To grant a stay of application of the EAC CET rate of 10% and apply an import duty rate of 25% for one year on new pneumatic tires of rubber, of a kind used on motorcycles (HS code 4011.40.00). This measure is intended to protect local manufacturers of pneumatic tires.

• To grant a stay of application of the EAC CET rate of 25% and apply an import duty rate of 35% for one year on peanut butter (HS code 2008.11.00). The aim is to promote the growth of small and medium peanut processing enterprises.

• To grant a stay of application of the EAC CET rate of 10% and apply an import duty rate of 0% for one year on wires of other alloy steel (HS codes 7229.20.00 and 7229.90.00). This measure is to reduce production costs for local manufacturers.

• To grant a stay of application of the EAC CET rate of 25% and apply an import duty rate of 0% for one year on milk cans (HS codes 7310.10.00 and 7310.29.90). The aim is to provide relief for the local dairy sector.

• To grant duty remission and apply an import duty rate of 0% instead of 10% for one year on organic surface-active agents (HS code 3402.11.00) used by manufacturers of detergents and liquid soaps. The aim is to reduce production costs for local detergents and liquid soaps manufacturers.

• To grant duty remission and apply an import duty rate of 0% instead of 25% or 10% for one year on raw material used in leather processing (HS codes 3208.20.00 and 3210.00.10). The aim is to promote growth of local leather industries.

• To grant duty remission and apply an import duty rate of 0% instead of 25% or 10% for one year on raw materials used to manufacture different types of fertilizers (HS codes 2710.99.00; 2528.00.00; and 3505.20.00). The aim is to promote growth of local manufacturers of fertilizers.

• To grant duty remission and apply an import duty rate of 0% instead of 25% for one year on packaging materials for processed tobacco (HS code 5310.10.00). The aim is to promote growth of local manufactures of tobacco.

• To grant duty remission and apply an import duty rate of 0% instead of 25% for one year on packaging materials for processed tea (HS codes 4819.20.90; 5407.44.00; and 3923.29.00). The aim is to promote growth of local tea manufacturers.

• To grant duty remission and apply an import duty rate of 10% instead of 25% for one year on aluminum alloy circles (HS code 7606.92.00) used to manufacture cooking pots. The objective is to reduce production costs for local manufacturers of aluminum cooking pots.

• To grant duty remission and apply an import rate of 10% instead of 25% for one year on completely knocked down three-wheel motorcycles excluding the chassis and its components (HS code 8704.21.90). The measure is to reduce production costs for local manufacturers of three-wheel motorcycles used for cargo transportation.

• To reduce the rate of import duty from 10% to 0% on flat-rolled products of other alloy steel, of a width of 600 millimeters (mm) or more (HS code 7225.30.00). The aim is to reduce production costs for local manufacturers.

• To continue to grant duty remission and apply an import duty rate of 0% instead of 25% or 10% on inputs for the manufacture of essential medical products and supplies for fighting COVID-19 including masks, sanitizers, coveralls, face shields and ventilators for one year. The objective is to promote domestic production of items for fighting COVID-19 health pandemic.

• To continue to grant a stay of application of EAC CET rate of 10% and apply an import duty rate of 0% for one year on cash registers and other Electronic Fiscal Devices and Machines and Point of Sale (HS codes 8470.50.00 and 8470.90.00). The objective is to encourage the use of electronic devices for accounting of government revenues.

• To continue to grant duty remission and apply an import duty rate of 0% instead of 25% for one year on other packing containers, including record sleeves as inputs used by domestic manufacturers of ultra-high temperature (UHT) milk (HS Code 4819.50.00). The aim is to promote domestic milk processing industries.

• To continue to grant duty remission and apply an import duty rate of 0% instead of 10% for one year on corks and stoppers (HS code 4503.10.00) used as inputs by domestic manufacturers of local wines. The aim is to promote local wine farming and growth of domestic wine industries.

• To continue to grant a stay of application of the EAC CET rate of 25% and apply an import duty rate of 35% for one year on ceramic tiles (HS codes 6907.21.00, 6907.22.00 and 6907.23.00). This measure is intended to protect local manufacturers of ceramic tiles.

• To continue to grant a stay application of the EAC CET rate of 25% and apply an import duty rate of 35% for one year on tea, whether or not flavored (Heading no. 09.02). This measure is intended to protect local tea processors.

• To continue to grant a stay of application of the EAC CET rate of 25% and apply an import duty rate of 35% for one year on sacks and bags, jute or other textile based fibers (Heading no. 53.03). The aim is to promote the growth of domestic sisal (fiber) production industries.

• To continue to grant a stay application of EAC CET rate of 0% and apply an import duty rate of 10% for one year on cocoa powder, not containing added sugar or other sweetening matter Hs code 1805.00.00. The measure is intended to promote domestic cocoa seeds production and enhance value addition in the country.

• To continue to grant duty remission and apply an import duty rate of 0% instead of 25% for one year on packaging materials for processed coffee (HS codes 7310.21.00; 6305.10.00; 3923.50.10; 3923.50.90 and 3920.30.90). The aim is to promote domestic coffee processors.

• To continue to grant duty remission and apply an import duty rate of 0% instead of 25% for one year on sacks and bags of polymers of ethylene as inputs used by domestic processors of cashew nuts (HS code 3923.21.00). The objective is to promote growth of domestic cashew nuts processing industries.

• To continue to grant duty remission at a duty rate of 0% instead of 25% for one year on inputs used by domestic processors of cotton lint (HS codes 3920.30.90, 6305.39.00, and 7217.90.00). This measure is intended to promote local cotton processing.

• To continue to grant duty remission and apply an import duty rate of 0% instead of 25% on packaging materials for seeds used by local producers of agricultural seeds (HS codes 3923.29.00, 6305.10.00, 4819.40.00, 7310.29.90, 6305.33.00, 6305.20.00, 6304.91.90 and 7607.19.90). This measure is to reduce production costs for domestic producers of packaging materials agricultural seeds.
• To continue to grant a stay application of the EAC CET rate of 25% and apply an import duty rate of 35% for one year on coffee whether roasted or decaffeinated, coffee husks and skins coffee substitutes containing coffee in any proportion (Heading no. 09.01). This measure is intended to protect coffee processors in the country.
• To continue to grant a stay application of the EAC CET rate of 10% on paper and paper products and apply a duty rate of 25% (HS codes 4804.11.00, 4804.21.00; 4804.29.00, 4804.31.00 and 4804.41.00). This measure is intended to protect domestic producers of papers and paper products and enhance competitiveness of domestically produced paper and paper products.
• To continue to grant duty remission and apply an import duty rate of 10% instead of 35% on imported wheat grain (HS codes 1001.99.10 and 1001.99.90). This measure is intended to reduce the cost of production for manufacturers of wheat flour in the country.
• To continue to grant a stay application of the EAC CET rate of 25% and instead apply an import duty rate of 25% or US$350 per metric ton whichever is higher on nails, tacks, drawing pins, corrugated nails staples (HS code 7317.00.00 other than those of Heading no. 83.05) and similar articles of iron or steel, whether or not with heads of other materials. The objective is to protect local producers of these products against imported cheap products.
• To continue to grant a stay of application of the EAC CET rate of 25% and apply an import duty rate of 60% for one year on mineral water (HS code 2201.10.00). The objective is to protect domestic producers of mineral water.
• To continue to grant a stay of application of the EAC CET rate of 25% and apply an import duty rate of 35% for one year on meat and edible meat offal. The aim is to promote domestic processing and value addition of meat.
• To continue to grant a stay of application of the EAC CET rate of 10% and apply an import duty rate of 25% for one year on crude vegetable oils of HS codes 1507.10.00, 1580.10.00, 1511.10.00, 1512.11.00, 1513.11.00, 1514.11.00, 1514.91.00, 1515.11.00, 1515.21.00 and 1515.30.00. This measure is intended to promote domestic production of vegetable oils.
• To continue to grant stay of application of the EAC CET rate of 0% and apply an import duty rate of 10% for one year on gypsum powder (HS code 2520.20.00). The aim is to protect domestic gypsum powder producers.
• To continue to grant a stay of application of the EAC CET on cane sugar (gap sugar) (HS code 1701.14.90) imported under a permit issued by the Tanzania Sugar Board and apply an import duty rate of 35% instead of 100% or US$460 per metric ton. whichever is higher for one year. This measure is intended to cover the domestic deficit during scarcity of local sugar production.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Tanzania), Dar es Salaam

• Silke Mattern | silke.mattern@tz.ey.com

• Laurian Justinian | laurian.justinian@tz.ey.com

• Beatrice Melkiory | beatrice.melkiory@tz.ey.com

• Eliya Nkerebuka | eliya.nkerebuka@tz.ey.com

• Judith Tibanywana | judith.tibanywana@tz.ey.com

Ernst & Young Société d’Avocats, Pan African Tax – Transfer Pricing Desk, Paris

• Bruno Messerschmitt | bruno.messerschmitt@ey-avocats.com

• Alexis Popov | alexis.popov@ey-avocats.com

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

• Kwasi Owiredu | kwasi.owiredu@uk.ey.com

• Byron Thomas | bthomas4@uk.ey.com

Ernst & Young LLP (United States), Pan African Tax Desk, New York

• Brigitte Keirby-Smith | brigitte.f.keirby-smith1@ey.com

• Dele Olagun-Samuel | dele.olaogun@ey.com

_________________________________________

ENDNOTE

1. Changes to the EACCMA are not in the Finance Bill, 2021 but are proposed by the Council of Ministers for the EAC Partner States.