The Finance Act, 2024

(a) — ninety percent of the abandoned properties

(a) ninety percent of the abandoned properties shall be submitted to the Consolidated Fund; and

(b) — ten percent of the remaining abandoned

(b) ten percent of the remaining abandoned properties shall be deposited in the General Reserve Fund maintained by the Bank. (4) The provisions of subsection (3) shall come into operation on the 1st January 2025.”. Amendment of 6. The principal Act is amended in section 47 by section 47 deleting the word “fifteen” appearing in subsection (2) and substituting for it the word “ten”.” PART III AMENDMENT OF THE BANK OF TANZANIA ACT, (CAP. 197) Construction 7. This Part shall be read as one with the Bank of Cap. 197 Tanzania Act, hereinafter referred to as the “principal Act”. Amendment of 8. The principal Act is amended in section 26 by- section 26 (a) designating the content of section 26 as subsection (1); and (b) adding immediately after subsection (1) as designated the following: (2) Save as otherwise prescribed by the Minister in the regulations, a person who transacts using any other currencies 4  No. 6 The Finance Act, 2024 other than the legal tender issued by the Bank, commits an offence.”. Amendment of 9. The principal Act is amended by deleting the sections 32 and 42 word “interest” appearing in sections 32(2)(b) and 42(2) and substituting for it the words “interest, return or profit”. Amendment of 10. The principal Act is amended in section 35(1) section 35 by adding the words “return or profit” after the word “rate”. Amendment of 11. The principal Act is amended in the opening section 41 phrase of section 41 by adding the words “return or profit” immediately after the words “interest rates”. PART IV AMENDMENT OF THE BUDGET ACT, (CAP. 439) Construction 12. This Part shall be read as one with the Budget Cap. 439 Act, hereinafter referred to as the “principal Act”. Amendment of 13. The principal Act is amended in section 35 by section 35 deleting subsection (1) and substituting for it the following: “(1) The sources of fund of the Contingency Fund shall consist of- (a) funds appropriated from the Consolidated Fund in any financial year; (b) windfall fuel toll charged Cap. 220 pursuant to the Road and Fuel Tolls Act; and

(c) — fifty percent of the railway

(c) fifty percent of the railway development levy charged Cap. 170 pursuant to the Railways Act. 5  No. 6 The Finance Act, 2024 PART V AMENDMENT OF THE CASHEWNUT INDUSTRY ACT, (CAP. 203) Construction 14. This Part shall be read as one with the Cap. 203 Cashewnut Industry Act, hereinafter referred to as the “principal Act”. Amendment of 15. The principal Act is amended in section 17A section 17A by adding at the end of subsection (2) the following proviso: “Provided that, from the 1st day of July, 2024, the whole amount of export levy collected under subsection (1) shall be remitted to the Cashewnut Board for a period of five years.”. PART VI AMENDMENT OF THE EXCISE (MANAGEMENT AND TARIFF) ACT, (CAP. 147) Construction 16. This Part shall be read as one with the Excise Cap. 147 (Management and Tariff) Act, hereinafter referred to as the “principal Act”. Amendment of 17. The principal Act is amended in section 124 section 124 (6A) by adding immediately after paragraph (c) the following: “(d) a service provider for commercial advertisement on betting, gaming or lotteries through print media, television or radio broadcasting: Provided that, the provisions of this paragraph shall not apply to non commercial advertisement of promotions, national lottery and licensed trial games.”. Amendment of 18. The principal Act is amended by adding at section 130 the end of section 130 the following proviso: 6  No. 6 The Finance Act, 2024 “Provided that, where excise duty has been paid in respect of excisable goods classified under HS Code 2207.10.00 imported into or locally manufactured in Tanzania by a licensed manufacturer which has been used as a raw material in manufacturing other excisable goods of heading 22.04 or 22.08, the excise duty paid on the raw material of HS Code 2207.10.00 shall be offset against the excise duty payable on the finished goods under heading 22.04 or 22.08.”. Amendment of 19. The principal Act is amended in section 137 section 137 by deleting subsection (4) and substituting for it the following: “(4) Every return required by subsection (3) shall be submitted not later than 25th day of the month following the month to which the return relates: Provided that, the Commissioner-General may, where he is satisfied that it is reasonable so to do, permit the manufacturer or provider to submit his return in respect of any month to which the return relates.”. Addition of 20. The principal Act is amended by adding section 146A immediately after section 146 the following: “Remission 146A. Notwithstanding section of duty on un- 124, the Commissioner may, upon denatured ethyl alcohol approval of the responsible Minister, grant to any person a remission of excise duty payable on un-denatured ethyl alcohol under HS Code 2207 used for- (a) production of industrial energy where the person produces the undenatured ethyl alcohol; or 7  No. 6 The Finance Act, 2024 (b) medical or laboratory use.”. Amendment of 21. The principal Act is amended in section section 148 148(2) by deleting the words “imported by the registered dealer” appearing in paragraph (a). Amendment of 22. The principal Act is amended in the Fourth

Fourth Schedule

Fourth Schedule Schedule by- (a) inserting immediately after Heading 20.09 the following: Heading HS Description Unit Old New Excise Code Excise Rate Rate 21.03 Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard. 2103. - Tomato ketchup and 20.00 other tomato sauces (other than tomato paste) Imported kg N/A Tshs. 300 per kg 2103. -Other 90.00 Imported kg N/A Tshs. 300 per kg (b) deleting the words “Tshs. 63.80 per litre” appearing in the sixth column under the description “locally produced, bottled” in HS Code 2201.10.00 and substituting for them the words “Tshs. 56.00 per litre”; (c) deleting the words “Tshs. 63.80 per litre” appearing in the sixth column under the description “locally produced, bottled” in HS Code 2201.90.00 and substituting for them the words “Tshs. 56.00 per litre”; (d) adding in the sixth column of HS Code 2206.00.20 under the description “imported” the rate “Tshs. 963.90 per litre”; (e) adding in the sixth column of HS Code 2206.00.90 under the description 8  No. 6 The Finance Act, 2024 “other/imported” the rate “Tshs. 2,959.74 per litre”; (f) inserting immediately after Heading 22.06 the following: Heading HS Description Unit Old New Code Excise Excise Rate Rate 22.07 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength. 2207.1 - Undenatured 0.00 ethyl alcohol of an alcoholic strength by volume of 80% vol or higher Locally produced l N/A Tshs. 5,000 per litre Imported l N/A Tshs. 7,000 per litre (g) deleting the whole of Heading 22.08 and substituting for it the following: Heading HS Code Description Unit Old Rate 22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; spirits, liqueurs and other spirituous beverages 2208.20.00 -locally produced l Tshs. 540 per spirits obtained by litre distilling grape wine or grape marc from local produced grapes 2208.60.00 -Vodka Locally Tshs. 2,466.45 manufactured ready per litre to drink of not more than 7% Alcohol by Volume (ABV) 9  No. 6 The Finance Act, 2024 other locally l Tshs. 3,978.00 produced products per litre under this heading Imported products under this heading : 2208.20.00 spirits obtained by l Tshs. 4,386.00 distilling grape wine per litre or grape marc 2208.30.00 -Whiskies l Tshs. 4,386.06 per litre 2208.40.00 -Rum and other l Tshs. 4,386.06 spirits obtained by per litre distilling fermented sugar-cane products 2208.50.00 - Gin and Geneva l Tshs. 4,386.06 per litre 2208.60.00 -Vodka l Tshs. 4,386.06 per litre 2208.70.00 -Liqueurs and l Tshs. 4,386.06 cordials per litre -Other 2208.90.10 ---Distilled Spirits l Tshs. 4,386.06 (e.g. Konyagi, per litre Uganda Waragi) (h) adding the words “Locally produced” at the beginning of each sentence in the second and third rows of HS Codes 2402.20.10 and 2402.20.90; and (i) inserting immediately before Heading 33.03 the following: Heading HS Code Description Unit Old New Excise Excise Rate Rate 32.08 Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous 10  No. 6 The Finance Act, 2024 medium; solutions as defined in Note 4 to this Chapter. - Based on polyesters: 3208.10.10 --- Lacquers kg 3208.10.20 --- Enamels kg 3208.10.90 --- Other kg - Based on acrylic or vinyl polymers: 3208.20.10 --- Lacquers kg 3208.20.20 --- Enamels kg 3208.20.90 --- Other kg - Other: 3208.90.10 --- Lacquers kg 3208.90.20 --- Enamels kg 3208.90.90 --- Other kg Imported N/A Tshs. 500 per kg PART VII AMENDMENT OF THE EXPORT TAX ACT, (CAP. 196) Construction 23. This Part shall be read as one with the Export Cap. 196 Tax Act, hereinafter referred to as the “principal Act”. Amendment of 24. The principal Act is amended in the Schedule Schedule by adding immediately after item 3 the following: No. Item Rate 4. Crude sunflower oil of HS Code 1512.11.00 Ten percentum on the FOB 5. Sunflower seeds of HS value of the commodity Code 1206.00.00 11  No. 6 The Finance Act, 2024 PART VIII AMENDMENT OF THE GAMING ACT, (CAP. 41) Construction 25. This Part shall be read as one with the Cap. 41 Gaming Act, hereinafter referred to as the “principal Act”. Amendment of 26. The principal Act is amended in section section 26 26(1), by- (a) adding the words “or token used in slot machines” at the end of paragraph (d); (b) adding immediately after paragraph (q) the following: “(r) dealer’s certificate on gaming activities;”; and (c) renaming paragraphs (r) and (s) as paragraphs (s) and (t) respectively. Amendment of 27. The principal Act is amended in section 73- section 73 (a) by deleting the words “or coins” appearing in the marginal note; (b) in subsection (2), by- (i) deleting the words “or by lawful coin of Tanzania” appearing in the opening phrase; and (ii) deleting paragraph (a) and substituting for it the following: “(a) knowingly to use anything other than chips or tokens approved by the Board intended to be used in the gaming activity; or”; and (c) in subsection (7) by deleting the word “coins,”. Commencement 28. Notwithstanding section 21, the provisions of of section 23 section 23 shall come into operation on the 1st April, 2025. 12  No. 6 The Finance Act, 2024 PART IX AMENDMENT OF THE IMPORTS CONTROL ACT, (CAP. 276) Construction 29. This Part shall be read as one with the Cap. 276 Imports Control Act, hereinafter referred to as the “principal Act”. Addition of 30. The principal Act is amended by adding section 18A immediately after section 18 the following: “Industrial 18A.-(1) There shall be charged Development a levy known as Industrial Levy Development Levy. (2) The levy referred to under subsection (1) shall be charged- (a) at the rates specified in the Schedule; and (b) on customs value of imported goods entered for home consumption in Act No. Mainland Tanzania in 1 of 2004 accordance with procedures applicable under the East African Community Customs Management Act. (3) The levy shall not apply to goods originating from East African Community Partner States that meet the East African Community Rules of Origin.”. Addition of 31. The principal Act is amended by adding Schedule immediately after section 22 the following: 13  No. 6 The Finance Act, 2024 “ SCHEDULE (Made under section 18A) GOODS SUBJECT TO INDUSTRIAL DEVELOPMENT LEVY HS Code Description Industrial Developme nt Levy Rate 1. 7213.91.10 Wire rod 10% 7213.91.90 2. 2203.00.10 Beer 5% 2203.00.90 3. 2204.10.00 wine 10% 2204.21.00 2204.22.00 2204.29.00 2204.30.00 2205.10.00 2205.90.00 4. 2202.99.00 Energy drink 5% 5. 2202.91.00 Non-alcoholic beer 5% 6. 3402.50.00 Other organic surface-active 10% 3402.90.00 agents, whether or not put up for retail sale 7. 2523.10.00 Cement Clinkers 10% 8. 2523.29.00 Portland Cement 10% ” PART X AMENDMENT OF THE INCOME TAX ACT, (CAP. 332) Construction 32. This Part shall be read as one with the Income Cap. 332 Tax Act, hereinafter referred as the “principal Act”. Amendment of 33. The principal Act is amended in section 3- section 3 (a) in the interpretation of the term “asset”, by inserting the words “digital asset” between the words “know-how” and “property”; and 14  No. 6 The Finance Act, 2024 (b) by inserting in the appropriate alphabetical order the following new definitions: ““artisanal miner” means a person who acquires mineral, and includes laborers in mining activities other than a holder of any licence Cap.1 under the Mining Act; 23 “digital content” means any electronic content that may be downloaded, streamed or accessed in any other manner, including e-books, magazines, news, journals, periodical, database, music, movie, software, mobile phone applications, images, text, sound effects, website, webinar, webcast, which is not simultaneously broadcasted over any conventional radio or television network in the United Republic; “digital content creator” means a person who produces digital content in formats that can be shared using a digital medium or platform over the internet”. Amendment of 34. The principal Act is amended in section 4(8), section 4 by- (a) adding the words “tea processing” immediately after the word “business”; and (b) deleting a full stop at the end and substituting for it a colon; and (c) adding the following proviso: “Provided that, in the case of a corporation conducting tea processing, the provisions of this subsection shall apply from 1st day of July, 2024 to 30th day of June, 2027.”. Amendment of 35. The principal Act is amended in section 11 by- section 11 (a) adding immediately after subsection (3) the following: “(4) Without prejudice to subsection (2), expenditure incurred by a person during the year of income on goods or services relating to the 15  No. 6 The Finance Act, 2024 production of income shall be supported by fiscal receipt except where the person providing the goods or services- (a) is a non-resident person with no permanent establishment in the United Republic; or (b) has been excluded from a requirement to issue fiscal receipt in accordance with Cap.4 section 36(2) of the Tax Administration 38 Act; and (b) renumbering subsection (4) as subsection (5).”. Amendment of 36. The principal Act is amended in section 19(2) section 19 by deleting the word “thirty” and substituting for it the word “forty”. Amendment of 37. The principal Act is amended in section 56(5) section 56 by deleting the words “of the entity” appearing in paragraph (a) and substituting for them the words “in the resident entity”. Amendment of 38. The principal Act is amended in section section 64 64(8)(a), by- (a) adding the words “or health” immediately after the word “education” appearing in subparagraph (ii); (b) adding immediately after subparagraph (i) the following: “(ii) environmental protection;”; and (c) renumbering subparagraphs (ii) and (iii) as subparagraphs (iii) and (iv) respectively. Amendment of 39. The principal Act is amended in section 82- section 82 (a) in subsection (2), by- (i) adding the words “construction equipment or machinery,” immediately after the word “than” appearing in paragraph (d); (ii) adding immediately after paragraph (d) the following: “(e) interest payable by a resident financial institution to a non- 16  No. 6 The Finance Act, 2024 resident financial institution or non-resident fund having an agreement with the Government of the United Republic which provides for lower interest loan rates to resident financial institution and such resident financial institution charged lower interest rates to resident beneficiaries of loans sourced from such non-resident financial institution or fund, excluding interest payable on any loan taken by a resident financial institution from a related non-resident person;”; and (iii) renaming paragraphs (e) and (f) as paragraphs (f) and (g) respectively; and (b) by adding immediately after subsection (2) the following: “(3) For purposes of this section, “construction equipment or machinery” means the equipment, machinery, structure, scaffolding, materials, tools, supplies or systems rented or leased by contractor or its subcontractors for use in accomplishing the construction works but not intended to form part of the structure to be built or for incorporation into the project.”. Amendment 40. The principal Act is amended in section 83(1), section 83 by- (a) adding immediately after paragraph (e) the following: “(f) is a buyer of- (i) industrial minerals other than salt; or 17  No. 6 The Finance Act, 2024 (ii) metallic minerals other than precious metals, Cap. 123 as defined in the Mining Act, supplied by holder of a primary mining licence or artisanal miner;”; and (b) renaming paragraph (f) as paragraph (g). Addition of sections 83B, 83C 41. The principal Act is amended by adding and 83D immediately after section 83A the following: “Withholding 83B. A resident or non-resident tax on person who makes payment to a resident payments to digital content digital content creator shall withhold creator income tax at the rate provided under paragraph 4(c)(viii) of the First Schedule. Withholding 83C.-(1) A resident person or tax on payments to non-resident person who owns a digital owner of asset exchange platform or facilitates the digital asset exchange or transfer of a digital asset and makes payment to a resident person in respect of exchange or transfer of the digital asset shall withhold income tax on the payment at the rate provided for under paragraph 4(c)(ix) of the First Schedule. (2) For purposes of this section- “digital asset” includes- (a) anything of value that is not tangible including crypto- currencies, token code, number held in digital form and generated through cryptographic means or any other means, by whatever name called, providing a digital representation of value exchanged with or without consideration that can be transferred, stored or exchanged electronically; or (b) a non-fungible token or any other 18  No. 6 The Finance Act, 2024 token of similar nature; and “payment” means the gross fair market value considered received or receivable at the point of exchange or transfer of a digital asset. Amendment of 42. The principal Act is amended in section 86(1) section 86 by deleting paragraphs (g) and (h) and substituting for them the following: “(g) payment for purchase of minerals made to an individual who is a holder of primary mining licence or artisanal miner under section 83(1)(e) and (f); (h) payment made to a local government authority, local community or any resident individual in respect of verified carbon emission reduction; Amendment of 43. The principal Act is amended in section 90, section 90 by- (a) deleting the word “person” appearing in subsection (1)(b) and substituting for it the word “individual”; and (b) deleting subsection (9) and substituting for it the following: “(9) For purposes of this section- “date of realisation of an interest” means- (a) the date of execution of contract for sale; (b) the date of parting with possession, use or control of a realised asset; or (c) the date of payment of part or whole of the consideration for the realised asset, whichever comes earlier; and “gross payment” means a total amount of payment received by a non-resident person, an instalment payer in 19  No. 6 The Finance Act, 2024 conducting a business of land, sea or air transport operator or charterer excluding any fees, charge or tax paid by a passenger and received by that person on behalf of the Government.”. Amendment of 44. The principal Act is amended in section 91, section 91 by- (a) adding immediately after subsection (1) the following: “(2) Notwithstanding subsection (1), a person whose financial statement is audited by the Controller and Auditor General shall file a return of income for the year of income with the Commissioner not later than nine months after the end of each year of income.”; and (b) renumbering subsection (2) as subsection (3). Amendment of 45. The principal Act is amended in section 92 by section 92 adding immediately after paragraph (b) the following: “(c) a non-resident individual whose income for the year of income consists exclusively of income from employment.”. Amendment of 46. The principal Act is amended in the First

First Schedule

First Schedule Schedule- (a) in paragraph 2(5) by deleting particulars of Class A and substituting for them the following: “Class A: Passenger Service Vehicles S/N Number of Passengers Tax Payable 1. Up to 15 250,000 2. 16 to 30 650,000 3. 31 to 45 1,100,000 4. 46 to 65 1,600,000 5. Above 65 2,200,000 ” (b) in paragraph 4(b) by- (i) adding immediately after subparagraph (ii) 20  No. 6 The Finance Act, 2024 the following; “(iii) in the case of royalty payment to resident sports entity or Tanzania Footbal Federation-five percent; or”; (ii) renaming paragraph (iii) as paragraph (iv); (c) in paragraph 4(c) by- (i) deleting reference to “section 83(1)(e)” appearing in subparagraph (vi) and substituting for it reference to “section 83(1)(e) and (f)”; (ii) deleting reference to “section 83(1)(f)” appearing in subparagraph (vii) and substituting for it reference to “section 83(1)(g); (iii) in the case of royalty payment to resident sports entity or Tanzania Football Federation - five percent; or”; and (iv) adding immediately after subparagraph (vii) the following: “(viii) in the case of payment referred to under section 83B, - five percent; (ix) in case of payment referred to under section 83C(1), - three percent.”. Amendment of 47. The principal Act is amended in the opening

Third Schedule

Third Schedule phrase to paragraph 2(3) of the Third Schedule by adding the word “equal” between the words “two” and “portions”. PART XI AMENDMENT OF THE LAND ACT, (CAP. 113) Construction 48. This Part shall be read as one with the Land Cap. 113 Act, hereinafter referred to as the “principal Act”. Amendment of 49. The principal Act is amended in section 33A section 33A relating to collection and distribution of land rent, by 21  No. 6 The Finance Act, 2024 deleting a full stop appearing at the end and substituting for it a colon and the following proviso: “Provided that, twenty percent of the moneys collected under this section shall be deposited at a local government authority’s own source account maintained at the Bank of Tanzania to facilitate rent collection and recovery.”. 22  No. 6 The Finance Act, 2024 PART XII AMENDMENT OF THE LOCAL GOVERNMENT AUTHORITIES (RATING) ACT, (CAP. 289) Construction 50. This Part shall be read as one with the Local Cap. 289 Government Authorities (Rating) Act, hereinafter referred to as the “principal Act”. Amendment of 51. The principal Act is amended in section 16 by section 16 deleting subsection (3) and substituting for it the following: “(3) Notwithstanding subsection (2), twenty percent of the moneys collected under subsection (1) shall be directly deposited at a local government authority’s own source account maintained at the Bank of Tanzania to facilitate rate collection and recovery.”. PART XIII AMENDMENT OF THE LOCAL GOVERNMENT FINANCE ACT, (CAP. 290) Construction 52. This Part shall be read as one with the Local Cap. 290 Government Finance Act hereinafter referred to as the “principal Act”. Amendment of 53. The principal Act is amended in section 37A by section 37A adding immediately after subsection (2) the following proviso: Provided that, where there are no application for loan among the groups specified under this section, a local government authority may issue loan to any specified group under this section from the percent set aside for the group from which the application have not been received.” 23  No. 6 The Finance Act, 2024 PART XIV AMENDMENT OF THE MICROFINANCE ACT, (CAP. 407) Construction 54. This Part shall be read as one with the Cap. 407 Microfinance Act, hereinafter referred to as the “principal Act”. Amendment of 55. The principal Act is amended in section 4(3)(a) section 4 by inserting the words “return or profits” between the words “interest” and “on”. PART XV AMENDMENT OF THE MINING ACT, (CAP. 123) Construction 56. This Part shall be read as one with the Mining Cap. 123 Act, hereinafter referred to as the “principal Act”. Amendment of 57. The principal Act is amended by repealing section 59 section 59 and replacing for it the following: “Gold to be 59. The mineral right holder or a set aside for licensed dealer, other than those having processing, smelting, agreement with the Government that refining and provides to the contrary, shall set aside trading the amount of gold for processing, smelting, refining and trading in Tanzania at the percentage as the Minister may, by regulations, determine: Provided that, the amount to be determined by the Minister shall not be less than twenty percent of the gold.”. Addition of section 58. The principal Act is amended by adding 72A immediately after the heading to Part V the following: “Application 72A. The provisions of Subparts of this Part to (i), (ii) and (iv) shall not apply to the Bank of Tanzania Bank of Tanzania in dealing with gold.”. Amendment of 59. The principal Act is amended in section 87- section 87 (a) in subsection (1) by- 24  No. 6 The Finance Act, 2024 (i) adding immediately after paragraph (d) the following: “(e) in the case of gold sold to the Bank of Tanzania, of four per centum;”; and (ii) renaming paragraphs (e) to (h) as paragraphs (f) to (i) respectively; (b) by adding immediately after subsection (1) the following: “(2) One-third of the royalty payable to the Government in respect of gold or gemstone shall be paid by depositing refined gold or gemstone equivalent to the ascertained royalty into the National Gold and Gemstone Reserve”; and (c) by renumbering subsections 2 to 6 as subsections 3 to 7 respectively. Amendment of 60. The principal Act is amended in section 89 by section 89 adding immediately after subsection (2) the following: “(3) Notwithstanding the provisions of subsections (1) and (2), the provisional royalty paid by the Bank of Tanzania shall be final, and the Bank shall not be required to pay balance or excess amount of royalty.”. Amendment of 61. The principal Act is amended in section 90A section 90A by adding the words “and a person selling gold to the Bank of Tanzania” at the end of subsection (5). PART XVI AMENDMENT OF THE MOTOR VEHICLE (TAX ON REGISTRATION AND TRANSFER) ACT, (CAP. 124) Construction 62. This Part shall be read as one with the Motor Cap. 124 Vehicle (Tax on Registration and Transfer) Act, hereinafter referred to as the “principal Act”. Amendment of 63. The principal Act is amended in the First 25  No. 6 The Finance Act, 2024 First Schedule Schedule- (a) in paragraph 3, by deleting the phrase “the registration tax payable in respect of that motor vehicle, notwithstanding the cylinder capacity of the motor vehicle shall be two hundred and fifty thousand shillings (250,000/=):” and substituting for it the following: “the registration tax payable in respect of that motor vehicle shall be- (a) in the case of a motor vehicle of any cylinder capacity, two hundred and fifty thousand shillings (250,000/=); and”; (b) in the case of electric motor vehicle or electric hybrid motor vehicle of - (i) micro hybrid with capacity 5< Kw, ninety- five thousand shillings (95,000/=); (ii) mild or semi-hybrid with capacity 6-30 Kw, two hundred and fifty thousand shillings (250,000/=); (iii) full hybrid with capacity 31-40 Kw, two hundred and fifty thousand shillings (250,000/=); and (iv) plug-in hybrid with capacity 41-90 Kw, two hundred and fifty thousand shillings (250,000/=):”; (c) in case of other motor vehicles, two hundred and fifty thousand shillings (250,000/=).”. (b) in paragraph 4, by adding the words “whether 26  No. 6 The Finance Act, 2024 electric or otherwise,” immediately after the word “motor cycle”. PART XVII AMENDMENT OF THE NATIONAL INDUSTRIES (LICENSING AND REGISTRATION) ACT, (CAP. 46) Construction 64. This Part shall be read as one with the National Cap. 46 Industries (Licensing and Registration) Act, hereinafter referred to as the “principal Act”. Addition of section 65. The principal Act is amended by adding 17A immediately after section 17 the following: “Conditions 17A.-(1) A person whose for industry is registered or licensed under registered and licensed this Act or granted certificate under the industries Tanzania Investment Act and granted Cap. 38 with- Cap. 148 (a) exemption or zero rate under the Value Added Tax Act; (b) duty remission under the East Act No. 1 of 2004 African Community Customs Management Act; or (c) a stay of application of East African Community Common External Tarriff, shall enter into performance agreement with the Minister responsible for finance. (2) The Minister responsible for finance may make regulations for the proper implementation of this section.”. PART XVIII AMENDMENT OF THE NATIONAL PARKS ACT, (CAP. 282) Construction 66. This Part shall be read as one with the National Cap. 282 Parks Act hereinafter referred to as the “principal Act”. Amendment of 67. The principal Act is amended in section 9 by deleting subsection (2) and substituting for it the 27  No. 6 The Finance Act, 2024 section 9 following: “(2) Any sum, fees, monies, charges payable to the Board of Trustees shall be collected by the Tanzania Revenue Authority and distributed as follows: (a) nine percent shall be deposited in the special account opened at the Bank of Tanzania, whereas- (i) three percent shall be for the purposes of Tanzania Wildlife Protection Fund; and (ii) six percent shall be for the purposes of the Tourism Development Levy, (b) ninety one percent shall be deposited in the Consolidated Fund.”. PART XIX AMENDMENT OF THE NGORONGORO CONSERVATION AREA ACT, (CAP. 284) Construction 68. This Part shall be read as one with the Cap. 284 Ngorongoro Conservation Area Act hereinafter referred to as the “principal Act”. Amendment of 69. The principal Act is amended in section 12 by section 12 deleting subsection (2) and substituting for it the following: (2) Any sum, fees, monies, charges payable to the Authority shall be collected by the Tanzania Revenue Authority and distributed as follows: (a) nine percent shall be deposited in the special account opened at the Bank of Tanzania, whereas- (i) three percent shall be for the purposes of Tanzania Wildlife Protection Fund; and (ii) six percent shall be for the purposes of the Tourism Development Levy, 28  No. 6 The Finance Act, 2024 Provided that, the expenditure under this paragraph shall be disbursed upon approval by the Paymaster General; (b) ninety one percent shall be deposited in the Consolidated Fund.” PART XX AMENDMENT OF THE PLANT HEALTH ACT, (CAP. 133) Construction Cap. 70. This part shall be read as one with the Plant 133 Health Act, hereinafter referred to as the “principal Act”. Addition of section 71. The principal Act is amended by adding 35A immediately after section 35 the following: “Collection 35A.-(1) The Authority shall of fees and collect fees and charges in respect of charges on importation inspection services on imported or or exported plant, plant product or regulated exportation article as prescribed in the regulations. of plant products (2) The amount collected under subsection (1) shall be distributed as follows: (a) seventy percent shall be remitted to the Agricultural Development Fund; and (b) the remaining thirty percent shall be deposited into the Consolidated Fund.”. PART XXI AMENDMENT OF THE PORTS ACT, (CAP. 166) Construction 72. This Part shall be read as one with the Ports Cap. 166 Act, hereinafter referred to as the “principal Act”. Amendment of 73. The principal Act is amended in section 67 by section 67 deleting subsection (3) and substituting for it the following: “(3) The Authority shall collect and deposit wharfage revenue under subsection 29  No. 6 The Finance Act, 2024 (1) in the Authority’s bank account opened at the Bank of Tanzania, and the expenditure of the wharfage revenue shall be disbursed upon approval by the Paymaster General.”. PART XXII AMENDMENT OF THE RAILWAYS ACT, (CAP. 170) Construction 74. This Part shall be read as one with the Railways Cap. 170 Act, hereinafter referred to as the “principal Act”. Amendment of 75. The principal Act is amended in section 68 by section 68 deleting- (a) figure “1.5” appearing in paragraph (a) of subsection (5) and substituting for it figure “2”; and (b) subsection (7) and substituting for it the following: “(7) The levy shall be collected by the Commissioner General of the Tanzania Revenue Authority. (8) Distribution of levy collected under subsection (7) shall be as follows: (a) fifty percent shall be deposited to the Railway Infrastructure Fund to be used solely for railway infrastructure development; and (b) fifty percent shall be deposited to the Contingency Fund established under the Budget Cap. 439 Act to be used solely for road infrastructure maintanance”. PART XXIII AMENDMENT OF THE ROAD AND FUEL TOLLS ACT, (CAP. 220) Construction 76. This Part shall be read as one with the Road Cap. 220 and Fuel Tolls Act, hereinafter referred to as the “principal Act”. 30  No. 6 The Finance Act, 2024 Amendment of 77. The principal Act is amended in section 4A by section 4A adding immediately after paragraph (c) the following: “(d) the amount derived from the collection of windfall fuel toll shall be remitted to the account of the Contingency Fund established under the Budget Act to be used solely for road infrastructure maintenance.”. Amendment of 78. The principal Act is amended in section 7- section 7 (a) in subsection (2), by adding immediately after paragraph (c) the following: “(d) the owner or a person in possession of windfall fuel, on the date of which fuel price under his custody attracts windfall profit.”; (b) by adding immediately after subsection (6) the following: “(7) For purposes of paragraph (d) of subsection (2)- (a) the owner or possessor of fuel storage facility shall keep records of quantities of fuel kept and sold at his place and declare such records to the Commissioner on a monthly basis and effect payment of fuel toll arising out of windfall fuel on or before 20th day of the following month; (b) the Minister responsible for energy, in consultation with the Minister, shall establish a special committee which shall be responsible for advising on fuel market price differentials and other related matters; (c) the Minister, in consultation with the Minister responsible for 31  No. 6 The Finance Act, 2024 energy, may make regulations to provide for applicable rates and specific procedure of assessing, monitoring and collecting the windfall fuel tolls; (d) the words: (i) “windfall fuel” means fuel whose market price has dropped without reduction of the market price; and (ii) “windfall profit” means the surplus profit earned or to be earned by the owner or possessor of windfall fuel.”; and (c) by renumbering subsection (7) as subsection (8). PART XXIV MAREKEBISHO YA SHERIA YA BIMA YA AFYA KWA WOTE, (SURA YA 161) Ufafanuzi 79. Sehemu hii itasomwa pamoja na Sheria ya Sura ya 161 Bima ya Afya kwa wote ambayo itajulikana kama “Sheria kuu”. Marekebisho ya 80. Sheria kuu inarekebishwa katika kifungu cha kifungu cha 25 25- (a) katika kifungu kidogo cha (2) kwa kuongeza mara baada ya aya (b), aya ifuatayo: “(c) matibabu ya wanawake wajawazito na watoto chini ya umri wa miaka mitano.”; na (b) katika kifungu kidogo cha (3) kwa kufuta aya (b) na badala yake kuweka aya ifuatayo: “(b) mapato yatokanayo na ushuru wa bidhaa kama ifuatavyo: (i) asilimia mbili ya mapato yatokanayo na makusanyo ya ushuru wa bidhaa kwenye 32  No. 6 The Finance Act, 2024 bidhaa za vinywaji vyenye kaboni, vinywaji vyenye vileo na bidhaa za vipodozi; na (ii) asilimia mia moja ya mapato yatokanayo na ushuru wa bidhaa kwenye kileo cha ethyl asili kinachotambulika kwa HS Code 2207.10.00;”. (c) ada ya bima ya vyombo vya moto kwa kiwango kitakachopendekezwa na Waziri mwenye dhamana ya fedha;”. PART XXV AMENDMENT OF THE SUGAR INDUSTRY ACT, (CAP. 251) Construction 81. This Part shall be read as one with the Sugar Cap. 251 Industry Act, hereinafter referred to as the “principal Act”. Amendment of 82. The principal Act is amended in section 4(2), section 4 by- (a) deleting the words “and sugar distributors” appearing in paragraph (b) and substituting for them the words “sugar distributors and users of sugar by-products”; (b) adding immediately after paragraph (d) the following: “(e) to impose and collect levies as provided under this Act; (f) to establish such committees as it consider necessary for better carrying out of the functions of the Board under this Act;”; and (c) renaming paragraphs (e) and (f) as paragraphs (g) and (h) respectively. Addition of 83. The principal Act is amended by adding sections 11C and 11D immediately after section 11B the following: “Declaration of 11C. The Board shall conduct costs of production an assessment to establish average production costs of sugar per metric 33  No. 6 The Finance Act, 2024 tonne at the beginning of every production season. Declaration of 11D. A sugar manufacturer distributors shall, at the beginning of every production season, declare and publish in a newspaper of wide circulation names of their sugar distributors for each region.”. Amendment of 84. The principal Act is amended by repealing section 13 section 13 and replacing for it the following: “Provisional 13. The Board may, before registration and licence registration or granting a licence under section 12, issue provisional licence or registration to sugar manufacturers, small scale sugar plants operators and industrial users of sugar for the purpose of- (a) monitoring progress of the implementation of provisional licenced or registered entity; (b) facilitating new applicants to acquire permit from relevant authorities during initial stages; and (c) ascertaining viability and sustainability of provisional registered or licenced entity.”. Amendment of 85. The principal Act is amended in section 14 by section 14 deleting subsections (3) and (4) and substituting for them the following: “(3) Save for the mandate of the National Food Reserve Agency to maintain buffer stock, the Board shall not issue sugar import licence under subsection (1) unless it is satisfied that the local sugar production is below the level of sugar requirement at a 34  No. 6 The Finance Act, 2024 particular time. (4) The low level of sugar production shall be- (a) as determined by a technical advisory committee established by the Minister under the regulations; and (b) done by technical advisory committee in consultation with the Board by considering among other things, sugar gap between local productions and consumption including sugar that is needed to maintain a buffer stock in the country. (5) For the purposes of this section, “buffer stock” means sugar reserve maintained by the National Food Reserve Agency for consumption in the country for the period of two months.”. Addition of section 86. The principal Act is amended in by adding 14A immediately after section 14 the following new section: “Mandate to 14A.-(1) Notwithstanding any import, store other provision to the contrary, the and distribute National Food Reserve Agency shall sugar have exclusive mandate to import, store and distribute sugar for domestic consumption to cover sugar gap or to maintain buffer stock. (2) Where the National Food Reserve Agency fails to import sugar pursuant to subsection (1), the Minister shall, in consultation with the Board and in the manner provided in the regulations determine the mode of importing sugar to cover sugar gap.”. 35  No. 6 The Finance Act, 2024 PART XXVI AMENDMENT OF THE TAX ADMINISTRATION ACT, (CAP. 438) Construction 87. This Part shall be read as one with the Tax Cap. 438 Administration Act, hereinafter referred to as the “principal Act”. Amendment of 88. The principal Act is amended in section 3 by section 3 adding in the appropriate alphabetical order the following new definition: “cargo consolidator” means a person licensed by a competent authority to operate cargo consolidation and deconsolidation business; “tax audit” means examination of taxpayer’s tax affairs to check compliance with tax laws, and includes desk audit, issue oriented audit or comprehensive audit;”. Addition of section 89. The principal Act is amended by adding new 24A section 24A as follows: “Obligation of 24A. A cargo consolidator shall cargo consolidators comply with customs and other laws and for domestic tax purposes procedures governing deconsolidation of cargo to its owners at the time of importation of goods in the country.”. Amendment of 90. The principal Act is amended in section 34- section 34 (a) by adding immediately after subsection 4 the following: “(5) Notwithstanding subsections (2) and (4), a document is considered to be served on the Commissioner General or a person when that document is duly sent by email, fax or any other electronic means in accordance with written laws governing electronic transactions.”; (b) by renumbering subsections (5) and (6) as subsections (6) and (7) respectively; and (c) in the renumbered subsection (7) by deleting 36  No. 6 The Finance Act, 2024 the reference to subsection (5) as reference to subsection (6). Amendment of 91. The principal Act is amended in section 37(2), section 37 by- (a) adding immediately after paragraph (a) the following: “(b) in the case of the income tax payable by a parastatal or an entity which is wholly or substantially owned by the Government, manager and head of finance or certified public accountant appointed or employed in the public service by the parastatal or such entity for that purpose, who shall both declare that the tax return is complete and accurate; and”; and (b) renaming paragraph (b) as paragraph (c). Amendment of 92. The principal Act is amended in section 51, by- section 51 (a) adding immediately after subsection (7) the following: “(8) An objection shall be deemed to have been admitted on the date the conditions of subsection (7) were complied with.”; and (b) renumbering subsections (8) to (12) as subsections (9) to (13) respectively. Amendment of 93. The principal Act is amended in section 73 by section 73 adding the words “Subject to sections 71 and 72” at the beginning of subsection (1). Amendment of 94. The principal Act is amended in section 76(2) section 76 by deleting the reference to “section 51(7)” and substituting for it the reference to “section 51(10)”. Addition of 95. The principal Act is amended by adding section 84A immediately after section 84 the following: Offence on failure to 84A. A person who contravenes deconsolidate cargo during importation the requirement of section 24A commits 37  No. 6 The Finance Act, 2024 an offence and shall be liable on conviction to a fine equal to thirty percent of the customs value of imported cargo.”. Amendment of 96. The principal Act is amended in section 86(1) section 86 by deleting the closing phrase and substituting for it the following: “commits an offence and shall, on conviction, be liable to- (i) a fine of twenty percent of the value of goods sold or service rendered or 100 currency points, whichever is greater: Provided that, the fine shall not be more than 200 currency points; or (ii) imprisonment for a term not exceeding three years, or to both.”. Amendment of 97. The principal Act is amended in the Second

Second Schedule

Second Schedule Schedule by deleting figure “15,000” and substituting for it figure “20,000”. PART XXVII AMENDMENT OF THE TAX REVENUE APPEALS ACT, (CAP. 408) Construction 98. This Part shall be read as one with the Tax Cap. 408 Revenue Appeals Act, hereinafter referred to as the “principal Act”. Amendment of 99. The principal Act is amended in section 4- section 4 (a) in subsection (3) by deleting paragraph (a) and substituting for it the following: “(a) a Chairman or Vice Chairman, if that person is a judicial officer or law officer with at least seven years working experience and having adequate knowledge in taxation;” and”. (b) by adding immediately after subsection (4) the 38  No. 6 The Finance Act, 2024 following: “(5) The Minister may issue an extended jurisdiction certificate to a member appointed under subsection (2)(c) to sit in the Board for purposes of hearing and determining an appeal originating from a region in which he was not appointed.”. Amendment of 100. The principal Act is amended in section 22 by section 22 adding immediately after subsection (7) the following: “(8) The appeal shall be settled amicably within sixty days from the date the Board or Tribunal issued an order under subsection (7) allowing the appeal to be settled amicably. (9) Where, upon expiry of sixty days, the parties have not finalised their settlement, the Board or Tribunal may, upon application by a party and on good reasons, grant extension of time not exceeding ten days. (10) Where the appeal is not amicably settled within the time prescribed under this section, the settlement of the appeal shall be treated as failed and the Board or Tribunal shall proceed to determine the appeal in accordance with section 18.”. 39  No. 6 The Finance Act, 2024 PART XXVIII AMENDMENT OF THE VALUE ADDED TAX ACT, (CAP. 148) Construction 101. This Part shall be read as one with the Value Cap. 148 Added Tax Act, hereinafter referred to as the “principal Act”. Amendment of 102. The principal Act is amended in section 2 by section 2 adding in the appropriate alphabetical order the following new definitions: ““gaming supply” means a supply of gaming Cap. 41 activities as defined under the Gaming Act; “online data services” means any form of monetization of user data including the sale or licensing of, or access to user data or information collected through user engagement with an online platform, whether sold or licensed directly or indirectly, aggregated or disaggregated, anonymised or used in any other form; “serviced apartment” means a furnished apartment or similar establishment, available for short or long-term stay, providing amenities for daily use, housekeeping and a range of other services all included within the rental price;”. Amendment of 103. The principal Act is amended in section 6(2) by section 6 adding immediately after paragraph (g) the following: “(h) importation or supply of water sanitation and treatment chemicals namely chlorine of HS Code 2801.10.00, aluminum sulphate of HS Code 2833.22.00, calcium hypochlorite of HS Code 2828.10.00, powdered activated carbon of HS Code 3802.10.00, potassium permanganate of HS Code 2841.61.00, carbon dioxide of 40  No. 6 The Finance Act, 2024 HS Code 2811.21.00, polly aluminium chloride (PAC) of HS Code 2827.32.00, hydraulic lime of HS Code 2522.30.00, sodium metalbisulphite of HS Code 2832.20.00, sodium hydroxide of HS Code 2815.12.00, algae floc 19s of HS Code 2827.32.00 and water meters of HS Code 9028.20.00 by a water supply and sanitation authority upon approval of the Minister responsible for water; and (i) importation or supply of equipment and machinery for processing and storing bee products namely honey settling tank of HS Code 8436.80.00; honey homogenizer tank of HS Code 8479.80.00; honey/wax press machine of HS Code 8436.80.00; wax sterilizer of HS Code 8419.89.00; wax melter of HS Code 8419. 89.00; honey barrel of HS Code 7310.10.00; and sack for honey barrel HS Code 3923.29.00 by bee keepers upon approval of the Minister responsible for natural resources.”. Amendment of 104. The principal Act is amended in section 11(10) section 11 by deleting HS Code “8701.20.90” and substituting for it HS Code “8701.21.90”. Amendment of 105. The principal Act is amended in section 29 by section 29 adding immediately after subsection (3) the following: “(4) A person who does not comply with conditions under subsection (3) shall notify the Commissioner General within a period of 90 days after the end of the period required under sub-section 3(c), by giving reasons for failure to comply with the conditions. (5) A person who contravenes subsection (4) shall be deemed to be 41  No. 6 The Finance Act, 2024 deregistered for Value Added Tax.”. Amendment of 106. The principal Act is amended in section 51(2) section 51 by- (a) adding the words “internet or” after the words “through a” appearing in the opening phrase; and (b) adding immediately after paragraph (i) the following: “(j) online data service.”. Amendment of 107. The principal Act is amended in section 55A section 55A by deleting the words “from 7th October, 2022 up to 30th June, 2024” and substituting for them the words “from 1 st July, 2024 up to 30th June, 2025”. Amendment of 108. The principal Act is amended in section 55B section 55B by deleting the words “from 1 st July, 2023 up to 30th June, 2024” and substituting for them the words “from 1 st July, 2024 up to 30th June, 2025”. Addition of 109. The principal Act is amended by adding sections 55C and 55D immediately after section 55B the following: “Zero rating on 55C. A supply of gold to the supply of gold to Bank of Tanzania shall be zero rated. Bank of Tanzania Zero rating on 55D. A supply of gold to a supply of gold to licensed refinery licensed refinery in Mainland Tanzania shall be zero rated.”. Amendment of 110. The principal Act is amended in Part I of the Schedule Schedule- (a) in item 1, by- (i) adding HS Code “8701.10.00” immediately before HS Code “8701.30.00” appearing in sub-item 1; and (ii) deleting sub-items 6, 7, 8 and 9; (b) in Item 3 by adding immediately after sub item 45 the following: 46. Blended tea or 0902.30.00 42  No. 6 The Finance Act, 2024 fermented tea from 0902.40.00 locally grown tea leaves (c) by deleting item 18 and substituting for it the following: “18. All goods, including material, supplies, equipment, machinery and motor vehicle for official use of armed forces as certified by the Minister responsible for defence.”; (d) in item 25 by deleting the word “refineries,”; (e) in item 27, by deleting the words “1st July, 2022 to 30th June, 2024” and substituting for them the words “1st July, 2024 to 30th June, 2025; (f) deleting item 31 and substituting for it the following: 31. Supply of- (a) aircraft and aircraft maintenance to a local operator of air transportation; or (b) aircraft engine and aircraft parts to a local manufacturer or assembler of aircraft or to a local operator of air transportation. (g) by adding immediately after item 32 the following: “33. Supply of video assistant referee (VAR) technology equipment and accessories upon approval by the Minister responsible for sports. 34. Supply of sewerage services by a water supply and sanitation authority.”. PART XXIX AMENDMENT OF THE VOCATIONAL EDUCATION AND TRAINING ACT, (CAP. 82) Construction 111. This Part shall be read as one with the Cap. 82 Vocational Education and Training Act, hereinafter referred to as the “principal Act”. 43  No. 6 The Finance Act, 2024 Amendment of 112. The principal Act is amended in section 19(1) section 19 by adding immediately after paragraph (j) the following: “(k) water supply and sanitation authority on payment to casual labourers engaged in implementation of water and sanitation project.”. PART XXX AMENDMENT OF THE WILDLIFE CONSERVATION ACT, (CAP. 283) Construction 113. This Part shall be read as one with the Wildlife Cap. 283 Conservation Act, hereinafter referred to as the “principal Act”. Amendment of 114. The principal Act is amended in section 8, by- section 8 (a) designating the contents of section 8 as subsection (1); (b) adding immediately after subsection (1) as designated the following: (2) Any sum, fees, monies, charges payable to the Tanzania Wildlife Management Authority shall be collected by the Tanzania Revenue Authority. (3) The amount collected under subsection (2) shall be distributed as follows: (a) three percent shall be deposited in the special account opened at the Bank of Tanzania for the purposes of Tanzania Wildlife Protection Fund, Provided that, the expenditure under this paragraph shall be disbursed upon approval by the Paymaster General; (b) ninety seven percent shall be deposited in the Consolidated Fund. (4) Notwithstanding the provisions of subregulation (3) the income obtained from tourist 44  No. 6 The Finance Act, 2024 hunting activities in respect of hunting blocks located in wildlife management areas shall be distributed as follows: (a) in the case of block fee- (i) seventy five percent shall be deposited in the account of the Tanzania Wildlife Management Authority; and (ii) twenty five percent shall be deposited in the Consolidated Fund; (b) in the case of game fee- (i) sixty five percent shall be deposited in the account of the Tanzania Wildlife Management Authority; and (ii) thirty five percent shall be deposited in the Consolidated Fund; (c) in the case of conservation fee- (i) fifty percent shall be deposited in the account of the Tanzania Wildlife Management Authority; and (ii) fifty percent shall be deposited in the Consolidated Fund; (d) in the case of observer fee- (i) sixty five percent shall be deposited in the account of the Tanzania Wildlife Management Authority; and (ii) thirty five percent shall be deposited in the Consolidated Fund; and (e) in the case of permit fee- (i) thirty five percent of permit fee shall be deposited in the account of the Tanzania Wildlife Management Authority; and (ii) sixty five percent shall be 45  No. 6 The Finance Act, 2024 deposited in the Consolidated Fund. (5) Monies deposited in the account of the Tanzania Wildlife Management Authority pursuant to subsection (4) shall be disbursed in accordance with the relevant regulations made under this Act.” Passed by the National Assembly on the 28th June, 2024 NENELWA JOYCE MWIHAMBI Clerk of the National Assembly 46