The Export Tax Act, Chapter 196 [Principal Legislation], Revised Edition 2023

1. Short title. er tp

2. Interpretation. ou ith

3. Imposition of export tax. w ed

4. Tax may be recovered by suit. ut rib

5. Penalty for non-payment of tax. st di

6. Summary recovery of tax and penalty. or

7. Provisions relating to crop authorities. ed uc

8. Power to amend Schedule. od

9. Exemptions and refunds. pr re

10. Collection by person other than Commissioner. be ay

11. Regulations. m ok

12. Offences. bo

13. Where offence is committed by body of persons. is th

14. Powers of proper officers. of rt

15. Commissioner may compound offence. pa o

16. Repeal. d .N ver se SCHEDULE re s ht rig ll .A a ni za an fT to en n m er ov G 25 20 © 753 <!-- page break --> CHAPTER 196 THE EXPORT TAX ACT An Act to provide for the export tax and related matters. . AG O [13th June, 1974] of Acts Nos. 15 of 1984 16 of 2007 GN.Nos. n io 17 of 1974 15 of 1985 8 of 2012 94 of 1976 s is 15 of 1975 13 of 1996 2 of 2014 102 of 1981 m er 7 of 1976 8 of 1998 15 of 2015 tp 12 of 1979 11 of 2000 5 of 2022 ou ith 12 of 1981 15 of 2003 7 of 2023 w ed ut rib st di or Short title 1. This Act may be cited as the Export Tax Act. ed uc od Interpretation 2. In this Act unless the context otherwise requires- pr re “Commissioner” means the Permanent Secretary to the be ay Treasury; m ok “crop authority” means any parastatal organisation dealing bo in agricultural produce or any by-product of any is th of agricultural produce; rt pa “due date” means the date on which export tax on any o .N commodity is payable; d ve “export” means export out of Tanzania; r se re “Minister” means the Minister responsible for finance; s ht rig “parastatal organisation” means- ll .A Cap. 212 (a) a body corporate established by or under any Act other a ni than the Companies Act; za an (b) any company registered under the Companies Act not fT Cap. 212 to less than fifty per centum of the issued share capital en m of which is owned by the Government or a parastatal n er ov organisation or, where the company is limited by G 25 guarantee, a company in respect of which the amount 20 © that the Government or the parastatal organisation which is a member of such company has undertaken to contribute in the event of the company being wound 754 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] up is not less than fifty per centum of the aggregate amount which all the members have undertaken to contribute; and references in this paragraph to a parastatal organisation include references to any such company; . AG O “proper officer” means- of n (a) the Commissioner; or sio is (b) any public officer appointed by the Commissioner to m er tp be a proper officer for the purposes of this Act; ou “tax” means the export tax imposed by this Act; and ith w “taxable commodity” means any commodity in respect of ed ut rib which export tax is payable under this Act. st di or

3.–(1) Subject to the provisions of this Act there shall be ed Imposition of uc export tax charged, levied and collected by the Commissioner a tax od Acts Nos. pr known as export tax, on the export from Tanzania of any of re 13 of 1996 s. 22 be 8 of 1998 s. 3 the commodities specified in the first column of the Schedule ay 7 of 2023 s. 12 m to this Act. ok bo (2) The tax on any commodity specified in the Schedule to is th this Act shall be at such rate as is specified in relation thereto of rt in the second column of the said Schedule. pa o (3) The tax on any taxable commodity shall be due and d .N become payable by the exporter prior to the removal of the ver se commodity from Tanzania: re s ht Provided that, where in the case of any agricultural produce, rig provision is made in this Act for payment of the tax by a crop ll .A a authority on the sale for export of any taxable commodity by ni za an such authority to a buyer in Tanzania, the tax shall become due fT and payable on such sale and shall be payable on or before the to en tenth day of the month immediately following the month in n m er which the sale takes place. ov G (4) Where in relation to any consignment of taxable 25 20 commodity the Commissioner is satisfied that tax has been © paid by a crop authority in accordance with the proviso to subsection (3) further export tax shall not be chargeable on the export of the same consignment. 755 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] (5) A provision in this Act regulating the construction of any expression used therein shall have the same effect as if such provisions were set out in section 2. (6) The provisions of this section shall not apply to export of raw hides and skin by an investor whose commercial . AG O undertaking in an Export Processing Zone is export of meat. of n sio

4. A tax, penalty or other sum payable under this Act shall is Tax may be m er recovered by suit be a debt due to the Government and may be recovered as a tp ou civil debt by a suit at the instance of the Commissioner or any ith w proper officer authorised by the Commissioner in that behalf. ed ut rib st Penalty for non- 5.–(1) Subject to the provisions of subsection (3) where any di or payment of tax amount of tax remains unpaid on the due date- ed Act No. uc 12 of 1981 s. 8 (a) additional tax equal to five per centum of that unpaid od pr amount shall thereupon become and be payable by way re be of penalty; and ay (b) where such amount remains unpaid for more than thirty m ok days after the due date the additional tax prescribed bo is by paragraph (a) shall be increased by five per centum th of for the second and every succeeding period of thirty rt pa days after the due date, or any part of such second or o d .N succeeding period, during which such amount remains ver se unpaid, and the increased additional tax by way of re s penalty shall become and be payable accordingly. ht rig (2) A sum payable by way of penalty under this section ll .A shall, for the purposes of this Act, be deemed to be tax and a ni za shall be collected and recoverable accordingly. an fT (3) The Commissioner or any proper officer authorised to en by him in that behalf may, in his discretion, remit the whole n m er or part of any penalty payable under this section; but the ov G Commissioner or a proper officer authorised by him in that 25 20 behalf shall not remit the penalty in excess of the maximum © amount of penalty remittable under this section which may be specified by the Minister by order published in the Gazette. 756 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] (4) The Commissioner, or proper officer authorised by him in that behalf, shall, as soon as may be after he has remitted any penalty, prepare and submit to the Minister a full report on the matter, setting out the circumstances and the reasons leading to or justifying the remission. . AG O (5) Upon receipt of a report submitted to him pursuant to of n subsection (4), the Minister may give such directions to the sio is Commissioner, in relation to the subject matter of the report m er tp as he sees fit and may, in addition, take any other action which ou he deems necessary. ith w (6) An action taken or thing done by the Commissioner in ed ut rib pursuance of any of the provisions of this section shall not be st di subject to review or question by or in any court. or ed uc

6.–(1) Without prejudice to any other method for recovery of od Summary recovery of tax pr the tax or penalties due under this Act, where any amount of re and penalty be tax or penalty is due from any person, the Commissioner or ay m any proper officer authorised by him in that behalf may file in a ok bo court of a resident magistrate having jurisdiction over the area is th in which the person from whom such amount is due resides or of rt carries on business, a certificate stating- pa o (a) the name and address of the person from whom such d .N amount is due; and ver se (b) the amount due, re s ht rig and upon such certificate being lodged in such court such ll .A certificate shall be deemed to be a plaint duly lodged under a ni za Order XXXV of the Civil Procedure Code and the court shall an Cap. 33 fT proceed with the matter in accordance with provisions of that to en Order, and in the event of a judgment being given in favour n m er of the plaintiff the court shall pass a decree for payment by ov G the defendant to the Government of the amount found due 25 20 together with interest thereon at five per centum per month on © the date on which the certificate was filed until payment. 757 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] (2) The provisions of subsection (1) shall apply notwithstanding that the amount involved exceeds the pecuniary jurisdiction of a court of a resident magistrate. (3) Every certificate filed in a court of a resident magistrate pursuant to the provisions of subsection (1) shall be prima . AG O facie evidence of the truth of the statements contained in such of n certificate. sio is m er

7. Every sale of any taxable commodity by a crop authority tp Provisions ou relating to crop shall be deemed for the purposes of this Act to be a sale for ith authorities w export unless such authority satisfies the Commissioner that ed ut the taxable commodity is not intended for export. rib st di or Power to amend 8.–(1) The Minister may, by order published in the Gazette, ed uc Schedule add to, amend, repeal or replace the Schedule to this Act. od pr (2) Every order made under subsection (1) shall be re be submitted for the approval, to be signified by resolution, of ay the National Assembly within fifteen days of the order being m ok made or, where the National Assembly is not meeting, during bo is its next meeting. th of (3) Where any such order is not approved by the National rt pa Assembly within the time specified in subsection (2) or o d .N is disapproved by the National Assembly the order shall ver se thereupon either expire forthwith or cease to have effect, as re s the case may be, but without prejudice to anything previously ht rig done or suffered to be done under the order. ll .A (4) Notwithstanding subsection (3), where in compliance a ni za with an order under subsection (1) which is subsequently an fT not approved or is disapproved by the National Assembly any to en person who has paid export tax or has paid export tax at an n m er increased rate as a result of such order, there shall be paid to ov G such person an appropriate refund having regard to the law in 25 20 force immediately prior to the coming into force of the order; © and where in compliance with an order as aforesaid any person has paid export tax at a reduced rate or has not been obliged to pay export tax as a result of such order, such person shall be liable to make good the deficiency by paying the difference 758 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] between the amount of export tax already paid by him and the amount which he would have been liable to pay had the order not been made. Exemptions and 9. Where in the opinion of the Minister it is in the public . AG refunds interest so to do, he may, by order published in the Gazette- O of (a) authorise the refund of any export tax on any n sio is commodity where similar tax has been paid on such m er commodity in any country or countries specified in the tp ou order;or ith w (b) exempt from export tax any commodity exported to ed ut any country. rib st di or Collection by 10. Notwithstanding the other provisions of this Act the ed uc person other than Minister may make an arrangement for the collection of the od Commissioner pr export tax on any taxable commodity by some person other re be than the Commissioner and may approve arrangements for ay the payment of the tax to such person before or after the export m ok of the commodity, but nothing in any such arrangement shall bo is exempt the exporter from any liability to pay the tax on such th of commodity unless the tax is paid in accordance with such rt pa arrangement. o d .N ver

11.–(1) The Minister may make regulations for the better se Regulations re carrying out of the purposes and provisions of this Act and, s ht rig without prejudice to the generality of the foregoing, may make ll .A regulations- a ni za (a) requiring persons engaged in the business of exporting an fT or selling for export any taxable commodity to submit to en such particulars and returns as may be prescribed; n m (b) providing for anything or matter which may be er ov prescribed or provided for by regulations. G 25 (2) The Minister may annex to the breach of any regulation 20 © made under subsection (1) a penalty of a fine not exceeding fifteen thousand shillings or of imprisonment for a term not exceeding two years or to both. 759 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] Offences 12. A person who- (a) fails to pay the tax due under this Act within fifteen days from the date on or before which the same is required to be paid; or (b) with intent to evade payment of any tax or penalty due . AG O under this Act- of n (i) makes any false statement to a proper officer; sio is (ii) fails or omits to give any information or submit m er tp any return required to be given or submitted by ou this Act or by regulations made hereunder, or ith w gives any such information or submits any such ed ut rib return which is false in any material particular; or st di (iii) does or fails to do any act or thing, or ed commits an offence and on conviction shall be liable to a fine uc od not exceeding twenty thousand shillings or to imprisonment re pr for a term not exceeding three years or to both. be ay m Where offence 13. Where any offence under this Act or under any regulations ok bo is committed by made under this Act is committed by a body of persons then, is body of persons th as well as such body of persons, any person who, at the time of of rt the commission of the offence was concerned, as a director, a pa o partner or an officer, with the management of the affairs of such d .N body of persons, commits an offence and on conviction shall ver se be liable to be proceeded against and punished accordingly, re s ht unless he proves to the satisfaction of the court that he had no rig knowledge and could not by the exercise of reasonable diligence ll a.A have had knowledge of the commission of the offence. ni za an fT Powers of proper 14. A proper officer may, for the purposes of the prevention to en officers of the evasion of tax, the recovery and collection of tax and n m er the investigation and prosecution of offences under this Act, ov G exercise the powers conferred on a proper officer appointed 25 20 Cap. 148 under the Value Added Tax Act, for the like purposes in respect © of value added tax and offences under that Act, and shall have the like protection against legal proceedings in the exercise of those powers. 760 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] Commissioner 15.–(1) The Commissioner may, where he is satisfied that may compound offence any person has committed an offence under this Act, or any regulations made under this Act, by order, compound such offence by requiring such person to make payment of a sum of money: . AG O Provided that- of n (a) such sum of money shall not be less than one hundred sio is shillings or more than the aggregate of five thousand m er tp shillings and the whole of the amount of any tax or ou penalty due from such person; ith w (b) the power conferred by this section shall only be ed ut rib exercised where the person admits in writing that he st di has committed the offence; and or ed (c) the Commissioner shall give to the person from whom uc od he receives such sum of money, a receipt. re pr (2) Where an offence is compounded in accordance with be the provisions of subsection (1) and any proceedings are ay m brought against the offender for the same offence, it shall be a ok bo good defence for such offender if he proves to the satisfaction is th of the court that the offence with which he is charged has been of rt compounded under subsection (1). pa o .N (3) Where a person is aggrieved by an order made under d ve subsection (1), he may, within thirty days of such order being r se re Cap. 20 made appeal to the High Court and the provisions of Part X s ht of the Criminal Procedure Act shall apply mutatis mutandis to rig ll every such appeal as if it were an appeal against sentence passed .A a ni by a district court in the exercise of its original jurisdiction. za an fT 16. [Repeals the Export Tax Ordinance] to Repeal en R.L. Cap. 196 m Act No. n er 31 of 1946 ov G 25 20 © 761 <!-- page break --> THE EXPORT TAX ACT [CAP. 196 R.E. 2023] SCHEDULE (Made under section 3) Acts Nos. 11 of 2000 GN. No. 15 of 1975 15 of 2003 94 of 1976 . AG 9 of 1976 16 of 2007 102 of 1981 O 12 of 1979 8 of 2012 of 15 of 1985 2 of 2014 n io 13 of 1996 15 of 2015 s is 8 of 1998 5 of 2022 m er tp ou Item Rate ith Eight percentum of the value of the w ed

1. Raw hides and skin commodity (f.o.b) or 0.52 USD per ut kilograme, whichever is greater. rib st Ten percentum of the value of the di

2. Wet Blue leather or commodity (f.o.b). ed uc Thirty percentum of the value of the 3. Copper Waste or scrap metals of od commodity (f.o.b) or 150 USD per Headings 72. 04 and 74.04 pr tonne, whichever is greater re be ay m ok bo is th of rt pa o d .N ver se re s ht rig ll .A a ni za an fT to en n m er ov G 25 20 © 762 <!-- page break -->