The Finance Act, 2022

17.04 — Sugar confectionary

17.04 Sugar confectionary (including white chocolate), not containing cocoa. 1704.10.00 - chewing gum, whether or not sugar- coated Locally produced kg Nil Tshs 500.00 Imported kg Nil Tshs 700.00 1704.90.00 - Other locally produced kg Nil Tshs 500.00 Imported kg Nil Tshs 700.00 14  No. 5 The Finance Act 2022 _____________________________________________________________________

18.06 — Chocolate and other

18.06 Chocolate and other food preparations containing cocoa 1806.31.00 -- filled, Chocolate in divided bars etc filled with cocoa and sugar preparation locally produced kg Nil Tshs 500.00 Imported kg Nil Tshs 700.00 1806.32.00 - not filled locally produced kg Nil Tshs 500.00 Imported kg Nil Tshs 700.00 1806.90.00 -Other locally produced kg Nil Tshs 500.00 Imported kg Nil Tshs 700.00

19.05 — Bread, pastry, cakes,

19.05 Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products. 1905.31.00 --Sweet biscuits locally produced kg Nil Tshs 500.00 Imported kg Nil Tshs 700.00 ” (b) adding the words “except those solely used by exporters of horticultural products” immediately after the word “plastics” appearing at the end of the description of Heading 39.23; and (c) inserting immediately before Heading 85.23 the following: “ Heading H.S. Code Description Unit Old New No. Rate Rate

85.07 — Electric

85.07 Electric accumulators, 15  No. 5 The Finance Act 2022 _____________________________________________________________________ including separators thereof, whether or not rectangular (including) square) 8507.10.00 Locally produced u Nil 5% Imported u Nil 10% 8507.20.00 - other lead-acid accumulators Locally produced u Nil 5% Imported u Nil 10% ” PART X AMENDMENT OF THE ELECTRONIC AND POSTAL COMMUNICATIONS ACT, (CAP. 306) Construction 37. This Part shall be read as one with the Electronic Cap. 306 and Postal Communications Act, hereinafter referred to as the “principal Act”. Addition of 38. The principal Act is amended by adding section 164B immediately after section 164A the following: “Imposition 164B.-(1) There is imposed a fee to of fees on be charged on television decoder television decoder subscription paid at a rate ranging from 500 subscription to 2,000 shillings. (2) The Minister shall, upon consultation with the Minister responsible for finance, make regulations prescribing the manner and modality under which the fee shall be collected and accounted for.”. PART XI AMENDMENT OF THE ENERGY AND WATER UTILITIES REGULATORY AUTHORITY ACT, (CAP. 414) Construction 39. This Part shall be read as one with the Cap. 414 Energy and Water Utilities Regulatory Authority Act, hereinafter referred to as the “principal Act”. Amendment of 40. The principal Act is amended in section section 7 7(1)(b), by- (a) deleting the word “establish” appearing in subparagraph (ii) and substituting for it the word “enforce”; and (b) deleting the words “standards for the” appearing in subparagraph (iii). 16  No. 5 The Finance Act 2022 _____________________________________________________________________ PART XII AMENDMENT OF THE EXPORT TAX ACT, (CAP. 196) Construction 41. This Part shall be read as one with the Cap. 196 Export Tax Act, hereinafter referred to as the “principal Act”. Amendment of 42. The principal Act is amended in the Schedule Schedule by adding immediately after item 2 the following: “ No. Item Rate 3. Copper waste or Thirty percentum of scrap metals of the value of the Headings 72.04 and commodity (f.o.b) or 74.04 150 USD per tonne, whichever is greater. ” PART XIII AMENDMENT OF THE FERTILIZERS ACT, (CAP. 378) Construction 43. This Part shall be read as one with the Cap. 378 Fertilizers Act, hereinafter referred to as the “principal Act”. Amendment of 44. The principal Act is amended in section 28 section 28 by deleting the phrase “and conform to the standards prescribed in the regulations”. PART XIV AMENDMENT OF THE FOREIGN VEHICLES TRANSIT CHARGES ACT, (CAP. 84) Construction 45. This Part shall be read as one with the Cap. 84 Foreign Vehicles Transit Charges Act, hereinafter referred to as the “principal Act”. 17  No. 5 The Finance Act 2022 _____________________________________________________________________ Amendment of 46. The principal Act is amended in section 3 section 3 by adding a proviso to subsection (2) as follows: “Provided that, such charge shall be charged solely on a round trip to a destination within Mainland Tanzania.”. Amendment of 47. The principal Act is amended in the Schedule Schedule by deleting the words “USD 16” appearing in the third column of item 2 and substituting for them the words “USD 10”. PART XV AMENDMENT OF THE GAMING ACT, (CAP. 41) Construction 48. This Part shall be read as one with the Cap. 41 Gaming Act, hereinafter referred to as “the principal Act”. Amendment of 49. The principal Act is amended in section 3 section 3 by adding in their appropriate alphabetical order the following new definitions: ““winning” means the receipt of an amount of payment or other consideration including a prize, award or reward given by way of money, assets, goods or property in kind to a person after having participated in a gaming activity recognised under this Act; “withholding agent” means a person required to withhold gaming tax on winning from a payment under this Act and remit the amount withheld to the Commissioner;”. Amendment of 50. The principal Act is amended in section 31- section 31 (a) in subsection (2)(b) by inserting the word “monthly” between the words “the” and “gross”;. (b) adding immediately after subsection (5) the following: 18  No. 5 The Finance Act 2022 _____________________________________________________________________ “(6) The provisions of the Tax Cap. 438 Administration Act relating to the maintenance of documents, tax liability, collection and recovery of tax, imposition of interest, tax enforcement, objection and appeal shall apply with respect to gaming tax under this Act.”. Amendment of 51. The principal Act is amended in section section 31A 31A by- (a) deleting subsection (2) and substituting for it the following: “(2) Notwithstanding subsection (1)- (a) land-based casino shall be taxed at a rate of twelve percent on the amount or value of winnings; and (b)sports betting shall be taxed at a rate of ten percent on the amount or value of winnings.”; (b) deleting subsection (4) and substituting for it the following: “(4) For purposes of collecting gaming tax under subsection (1), the licencee of a gaming activity in which the wining is made and paid for, shall be a withholding agent of a person entitled to the winning and responsible for- (a) issuing notifications necessary for collection of gaming tax on winning and withholding the gaming tax at the time of payment of winning; (b) remitting the withheld gaming tax to the Commissioner electronically on or before the seventh day of the following month from the month of payment of the winning; and (c) submitting return or certificate of payment of the withheld gaming tax to the Commissioner not later than fifteen days following the end of each calendar month. 19  No. 5 The Finance Act 2022 _____________________________________________________________________ (5) The Commissioner may, subject to subsection (4) and in consultation with the Board, issue guidelines on the mode of reporting and collection of gaming tax on winning under this Act. (6) A licencee or withholding agent who fails to withhold gaming tax under this Act shall be responsible to pay the amount of gaming tax on winning not withheld together with the interest and penalty as provided for Cap. 438 under the Tax Administration Act.”. PART XVI AMENDMENT OF THE GOVERNMENT LOANS, GUARANTEES AND GRANTS ACT, (CAP. 134) Construction 52. This Part shall be read as one with the Cap. 134 Government Loans, Guarantees and Grants Act, hereinafter referred to as the “principal Act”. Amendment of 53. The principal Act is amended in section 3 section 3 by deleting the proviso to subsection (1) and substituting for it the following: “Provided that, the authority conferred upon the Minister by this section shall be exercised in such a manner that the borrowing does not exceed the sustainability threshold indicators from debt sustainability analysis conducted on annual basis or at any other period as the Minister may deem appropriate.”. Amendment of 54. The principal Act is amended in section 19, section 19 by- (a) deleting the words “Commissioner for Policy Analysis” appearing in subsection (1) and substituting for them the words “Commissioner responsible for Debt Management”; (b) by deleting subsection (3) and substituting for it the following: “(3)Members of the technical committee shall be- 20  No. 5 The Finance Act 2022 _____________________________________________________________________ (a) heads of unit involved in debt management from the respective institutions as specified under section 18 of this Act; (b) head of the institution or division responsible for national planning in the Ministry responsible for finance; (c) Commissioner for policy analysis in the Ministry responsible for finance; (d) head of institution or division responsible for public and private partnership; and (e) Treasury Registrar.”. Repeal and 55. The principal Act is amended by repealing replacement of section 20 section 20 and replacing for it the following: “Secretariat 20. The department responsible for debt management within the Ministry shall, in such manner as may be provided for in the regulations, constitute the National Committee Secretariat.”. PART XVII AMENDMENT OF THE HIDES, SKINS AND LEATHER TRADE ACT, (CAP. 120) Construction 56. This Part shall be read as one with the Cap. 120 Hides, Skins and Leather Trade Act, hereinafter referred to as the “principal Act”. Amendment of 57. The principal Act is amended in section 3- section 3 (a) in the interpretation of the term “hide” by adding the words “but does not include trophy as defined in the Wildlife Cap. 283 Conservation Act” immediately after the word “camels”. (b) in the interpretation of the term “skin” by deleting the words “animal of the smaller kinds, including sheep, goat, pigs, reptiles, birds and fishes or the immature animals of larger species including calves” and substituting for them the words “domestic 21  No. 5 The Finance Act 2022 _____________________________________________________________________ animal of the smaller kind, including sheep, goat, pigs, birds and fishes or the immature animals of larger species including calves but does not include trophy as defined in the Wildlife Cap. 283 Conservation Act”. PART XVIII AMENDMENT OF THE INCOME TAX ACT, (CAP. 332) Construction 58. This Part shall be read as one with the Cap. 332 Income Tax Act, hereinafter referred to as the “principal Act.” Amendment of 59. The principal Act is amended in section 3- section 3 (a) in the definition of the term “business”, by- (i) adding immediately after paragraph (a) the following: “(b) a transaction or activity carried out through the internet or an electronic means including an electronic service or transaction conducted in the digital market place regardless of the manner in which such transaction is carried out;”; (ii) renumbering paragraph (b) as paragraph (c); (b) by adding in the appropriate alphabetical order the following definitions: ““digital market place” means a platform which enables direct interaction between buyers and sellers of electronic services; “electronic service” has the meaning ascribed to it under section 51 of the Value Cap. 148 Added Tax Act; “alternative financing arrangement” means any financial arrangement approved by the Bank of Tanzania other than 22  No. 5 The Finance Act 2022 _____________________________________________________________________ conventional financial arrangements;”. Amendment of 60. The principal Act is amended in section section 10 10(3)(b), by- (a) deleting the word “and” appearing at the end of subparagraph (i); (b) deleting a comma appearing at the end of subparagraph (ii) and substituting for it a semi- colon and the word “and”; and (c) adding immediately after subparagraph (ii) the following: “(iii) for a special strategic investment approved by the National Investment Steering Committee under the Cap. 38 Tanzania Investment Act,”. Amendment of 61. The principal Act is amended in section section 12 12(5) by deleting the definition of the term “equity” and substituting for it the following: “equity” means paid up share capital at the end of the year of income;”. Amendment of 62. The principal Act is amended in section 32, section 32 by- (a) adding immediately after subsection (6) the following: “(7) For the purpose of this section, where an alternative financing arrangement approved by the Bank of Tanzania is payable as cost plus margin, the margin shall be treated in the same manner as interest.”; and (b) renumbering subsection (7) as subsection (8). Addition of 63. The principal Act is amended by adding Division VI Division VI immediately after section 65S as follows: “DIVISION VI Transportation Persons 65T.-(1) The income of a resident person engaged in engaged in transportation of passengers or transport goods shall be determined in accordance with ation of Subdivision B of Part III. 23  No. 5 The Finance Act 2022 _____________________________________________________________________ passenge (2) Expenses of a resident person rs or goods engaged in transportation of passengers or goods shall be determined in accordance with Subdivision D of Part III. (3) Notwithstanding the provisions of sub-section (1), tax payable by a resident person under this Division shall be determined in accordance with the rates prescribed in paragraph 2(5) of the First Schedule. (4)The tax payable under subsection (3) shall be the person’s advance tax. (5) The persons referred to under this Division shall comply with electronic means of issuing receipts as may be prescribed by the Commissioner.”. Amendment of 64. The principal Act is amended in section section 66 66(4) by adding the words “whether physically or through any electronic means” immediately after the words “United Republic” appearing in paragraph (b). Amendment of 65. The principal Act is amended in section 69, section 69 by- (a) adding the words “including payment made for harnessing, generating or utilising land, air or water natural resources for generation of power or anything of value whether the respective natural resource is located alongside the border or within the country” immediately after the word “waters” appearing at the end of paragraph (c);and (b) adding immediately after paragraph (l) the following: “(m) payments made by an individual other than payments made in conducting a business in respect of a service rendered by a non- resident through a digital market place”. Amendment of 66. The principal Act is amended in section section 74 74(1)(b) by adding the words “and in the case of distributions by a resident financial institution and for purpose of section 75(6), amount of distributions which 24  No. 5 The Finance Act 2022 _____________________________________________________________________ are treated as not-distributable as determined by the Bank of Tanzania” immediately after the word “respectively”. Addition of section 67. The principal Act is amended by adding 77A immediately after section 77 the following: “Tax credit 77A. A resident person, other than a for business or partnership, who carries out business investment or investment in both Mainland operating in Tanzania and Tanzania Zanzibar, both Mainland may claim a tax credit for year of Tanzania income for any income tax paid by the and person in relation to the person’s Tanzania Zanzibar taxable income from business or investment carried out in Mainland Tanzania or Tanzania Zanzibar, as the case may be.” Amendment of 68. The principal Act is amended in section section 82 82(2), by- (a) deleting paragraph (a); (b) renaming paragraphs (b) to (e) as paragraphs (a) to (d) respectively; and (c) adding immediately after paragraph (d) as renamed the following: “(e) interest paid to a holder of corporate or municipal bonds issued and listed at the Dar es Salaam Stock Exchange with effect from 1st July, 2022.”. Amendment of 69. The principal Act is amended in section section 86 86(1), by- (a) deleting the semi-colon and the word “and” appearing at the end of paragraph (f); and (b) deleting paragraph (g). Addition of 70. The principal Act is amended by adding sections 90A immediately after section 90 the following: “Tax 90A.-(1) Where a non- payment on resident person receives a payment income realised that has a source in the United through Republic from an individual, other than a payment made in the course 25  No. 5 The Finance Act 2022 _____________________________________________________________________ digital of conducting business, in respect market place of services rendered through a digital market place, such person shall pay income tax for payments received in a calendar month by way of single instalment equal to two percent of the gross payment. (2) A person referred to under subsection (1) shall be liable to pay income tax by filing a return to the Commissioner on or before the seventh day of the month following the month to which the payment relates. (3) The Minister may, by regulations, prescribe procedures for assessing and collecting income tax or giving effect to the provisions of this section. (4) For the purpose of subsection (1), “gross payment” means the payment made but does not include value added tax.”. Amendment of 71. The principal Act is amended in section section 92 92(b) by adding the words “or 90A” immediately after figure “90(1)”. Amendment of 72. The principal Act is amended in the First

First Schedule

First Schedule Schedule- (a) in paragraph 2, by- (i) adding the words “not including income derived by independent professionals and providers of, technical, management, construction and training services” immediately after the word “business” appearing in subparagraph (1)(a); (ii) deleting the table appearing in subparagraph (3) and substituting for it the following: “ TURNOVER TAX PAYABLE TAX PAYABLE WHERE WHERE SECTION 35 OF SECTION 35 OF TAX TAX 26  No. 5 The Finance Act 2022 _____________________________________________________________________ ADMINISTRATI ADMINISTRATI ON ACT IS NOT ON ACT IS COMPLIED COMPLIED WITH WITH Where turnover does NIL NIL not exceed Tshs. 4,000,000/= Where turnover exceeds Tshs. 100,000/= 3% of turnover in Tshs. 4,000,000/= but excess of Tshs. does not exceed Tshs. 4,000,000/= 7,000,000/= Where turnover exceeds Tshs. 250,000/= Tshs. 90,000/= Tshs. 7,000,000/= but plus 3% of turnover does not exceed Tshs. in excess of Tshs. 11,000,000/= 7,000,000/= Turnover of Tshs. 3.5% of turnover 11,000,001/= but does not exceed Tshs. 100,000,000/= (iii) adding immediately after subparagraph (3) the following: “(4) The Minister may, in consultation with the Minister responsible for finance of the Revolutionary Government of Zanzibar, determine the presumptive rate applicable in Tanzania Zanzibar. (5) The rates of income tax referred to in section 65T shall be as follows: Category of Vehicles Tax Payable Category A : Goods Vehicle Load Vehicle between 0 - 1 Tonne 180,000 Load Vehicle between 1 - 5 Tonnes 450,000 Load Vehicle between 6 - 10 Tonnes 720,000 Load Vehicle between 11 - 15 Tonnes 1,710,000 Load Vehicle between 16 - 20 Tonnes 2,430,000 Load Vehicle between 21 - 25 Tonnes 2,610,000 Load Vehicle above 25 Tonnes 2,790,000 Category B : Passenger Vehicle Bus and other similar vehicle with seating capacity below 10 passengers 180,000 Bus with seating capacity above 10 but below 16 passengers 450,000 Bus with seating capacity from 16 up to 30 passengers 720,000 27  No. 5 The Finance Act 2022 _____________________________________________________________________ Bus with seating capacity up to 32 passengers 1,710,000 Ordinary bus 2,430,000 Semi-luxury bus 2,610,000 Luxury bus 2,790,000 (b) in paragraph 4(b), by- (i) adding immediately after subparagraph (ii) the following: “(iii) in the case of royalty referred to in paragraph (c) of the definition of the term “royalty” - ten percent;”; and (ii) renumbering subparagraph (iii) as subparagraph (iv). Amendment of 73. The principal Act is amended in paragraph Second Schedule 1 of the Second Schedule by adding immediately after subparagraph (x) the following: “(y) amount derived from gain on realisation or transfer of mineral rights and mineral information to a partnership entity formed between the Government and an investor; (z) amount derived from gain on realisation or transfer of free carried interest shares from a partnership entity to the Government; (aa) amount derived from gain on realisation or transfer of shares to the Government through the Treasury Registrar.”. 28  No. 5 The Finance Act 2022 _____________________________________________________________________ PART XIX AMENDMENT OF THE INSURANCE ACT, (CAP. 394) Construction 74. This Part shall be read as one with the Cap. 394 Insurance Act, hereinafter referred to as “the principal Act”. Addition of 75. The principal Act is amended by adding section 133A immediately after section 133 the following: “Mandatory 133A.-(1) Subject to the insurance provisions of this Act and any other written law, a person shall not import goods or operate a public market, commercial building, marine vessel, ferry or pantoon without obtaining an insurance cover. (2) The Minister shall, by regulations, prescribe commercial buildings, public markets and imported goods requiring mandatory insurance.”. PART XX AMENDMENT OF THE LAND ACT, (CAP. 113) Construction 76. This Part shall be read as one with the Land Cap. 113 Act, hereinafter referred to as “the principal Act”. Amendment of 77. The principal Act is amended in section section 33 33, by- (a) deleting the words “one per centum per month shall be payable on the unpaid amount until payment of the amount is made, and such interest shall be collected and recoverable in the same manner as rent.” appearing in subsection (11) and substituting for them the words “zero point five per centum per month shall be payable on the unpaid amount until payment of the amount is made and interest at the rate of one per centum per month after twelve months, and such interest shall be collected and recoverable in the same manner as rent”; and 29  No. 5 The Finance Act 2022 _____________________________________________________________________ (b) adding immediately after subsection (12) the following: “(13) Without prejudice to the provision of subsection (10), the Minister responsible for finance may, upon recommendation from the Minister, exempt the whole or part of interest accrued from land rent arrears. (14) The Minister may, in consultation with the Minister responsible for finance, make regulations prescribing the criteria, manner and procedure for grant of exemption under this section.”. PART XXI AMENDMENT OF THE LAND TRANSPORT REGULATORY AUTHORITY ACT, (CAP. 413) Construction 78. This Part shall be read as one with the Land Cap. 413 Transport Regulatory Authority Act, hereinafter referred to as the “principal Act”. Amendment of 79. The principal Act is amended in section section 5 5(1)(c), by- (a) deleting the word “establish” appearing in subparagraph (i) and substituting for it the word “enforce”; and (b) deleting the words “standards for the” appearing in subparagraph (ii). PART XXII AMENDMENT OF THE LOCAL GOVERNMENT FINANCE ACT, (CAP. 290) Construction 80. This Part shall be read as one with the Local Cap. 290 Government Finance Act, hereinafter referred to as the “principal Act”. Amendment of 81. The principal Act is amended in paragraph Schedule 1 of Schedule- (a) by deleting the figure “5%” appearing in subparagraph (c) and substituting for it the figure “3%”; and 30  No. 5 The Finance Act 2022 _____________________________________________________________________ (b) in the third column, by adding immediately after the last item the following: “  a cess on seeds”. PART XXIII AMENDMENT OF THE LOCAL GOVERNMENT (DISTRICT AUTHORITIES) ACT, (CAP. 287) Construction 82. This Part shall be read as one with the Local Cap. 287 Government (District Authorities) Act, hereinafter referred to as the “principal Act”. Amendment of 83. The principal Act is amended in section 113 section 113 by adding immediately after subsection (2) the following: “(3) Each district authority shall establish a one-stop centre for co- coordinating, encouraging, promoting and facilitating business within its area of jurisdiction. (4) The Minister may make regulations for better implementation of the provisions of subsection (3)”. PART XXIV AMENDMENT OF THE LOCAL GOVERNMENT (URBAN AUTHORITIES) ACT, (CAP. 288) Construction 84. This Part shall be read as one with the Local Cap. 288 Government (Urban Authorities) Act, hereinafter referred to as the “principal Act”. Amendment of 85.The principal Act is amended in section 60 section 60 by adding immediately after subsection (5) the following: “(6) Each urban authority shall establish a one-stop centre for co-coordinating, encouraging, promoting and facilitating business within its area of jurisdiction. 31  No. 5 The Finance Act 2022 _____________________________________________________________________ (7) The Minister may make regulations for better implementation of the provisions of subsection (6).”. PART XXV AMENDMENT OF THE MINING ACT, (CAP. 123) Construction 86. This Part shall be read as one with the Cap. 123 Mining Act, hereinafter referred to as the “principal Act”. Amendment of 87. The principal Act is amended in section section 87 87(1), by- (a) adding immediately after paragraph (c) the following: (d) “in the case of gold sold at refinery centers, of four per centum; (e) in the case of coal used as industrial raw material, of one per centum;”; (b) renaming paragraphs (d) and (e) as paragraphs (f) and (g), respectively. PART XXVI AMENDMENT OF THE NATIONAL PAYMENT SYSTEMS ACT, (CAP. 437) Construction 88. This Part shall be read as one with the Cap. 437 National Payment Systems Act, hereinafter referred to as the “principal Act”. Amendment of 89. The principal Act is amended in section section 46A 46A, by- (a) deleting the marginal note and substituting for it the following: “Electronic money transactions levy” (b) deleting the words “mobile money transfer” wherever they appear and substituting for them the words “electronic money”; (c) deleting figure “10,000” appearing in subsection (1) and substituting for it figure “4,000; (d) adding immediately after subsection (2) the following: 32  No. 5 The Finance Act 2022 _____________________________________________________________________ “(3) The provisions of this section shall not apply to transactions involving payment of salaries by employers.”. PART XXVII AMENDMENT OF THE OCCUPATIONAL SAFETY AND HEALTH ACT, (CAP. 297) Construction 90. This Part shall be read as one with the Cap. 297 Occupational Safety and Health Act, hereinafter referred to as the “principal Act”. Amendment of 91. The principal Act is amended in section section 17 17(3) by inserting the words “within seven days” immediately before the words “upon fulfilling”. PART XXVIII AMENDMENT OF THE PORTS ACT, (CAP. 166) Construction 92. This Part shall be read as one with the Ports Cap. 166 Act, hereinafter referred to as the “principal Act”. Amendment of 93. The principal Act is amended in section 67 section 67 by deleting subsection (3) and substituting for it the following: “(3) The Tanzania Revenue Authority shall collect wharfage revenue and deposit the same in a bank account opened at the Bank of Tanzania and the revenue shall be disbursed to the Authority by the Paymaster General.”. PART XXIX AMENDMENT OF THE TANZANIA INVESTMENT ACT, (CAP. 38) Construction 94. This Part shall be read as one with the Cap. 38 Tanzania Investment Act, hereinafter referred to as the “principal Act”. Amendment of 95. The principal Act is amended in section section 20 20(8) by deleting the words “the Minister for finance shall confer such additional fiscal incentives as approved by the National Investment Steering 33  No. 5 The Finance Act 2022 _____________________________________________________________________ Committee under an order published in the Gazette” and substituting for them the words “such fiscal incentives shall be granted in accordance with the relevant tax law”. PART XXX AMENDMENT OF THE TANZANIA REVENUE AUTHORITY ACT, (CAP. 399) Construction 96. This Part shall be read as one with the Cap. 399 Tanzania Revenue Authority Act, hereinafter referred to as the “principal Act”. Amendment of 97. The principal Act is amended in section section 10 10(1), by- (a) deleting the words “national policy” appearing in paragraph (b) and substituting for them the words “fiscal policy”; and (b) deleting the words “Zanzibar Government” appearing in paragraph (c) and substituting for them the words “Revolutionary Government of Zanzibar”. Amendment of 98. The principal Act is amended in section section 23A 23A(2), by- (a) adding the words “self-financing operational services” immediately after the words “consultancy services; and (b) adding a proviso as follows: “Provided that, the amount collected as custom processing fees arising from fees on self-financing operational services shall be retained by the Authority for a period of one year from 1st July, 2022 up to 30th June, 2023.”. Amendment of 99. The principal Act is amended in paragraph

Second Schedule

Second Schedule 1 of the Second Schedule by adding immediately after subparagraph (4) the following: “(5) A member of the Board under section 10(1)(a) to (e) may attend meetings of the Board in person or through a duly appointed proxy: 34  No. 5 The Finance Act 2022 _____________________________________________________________________ Provided that, the appointed proxy shall be of a rank of Director or above.”. PART XXXI AMENDMENT OF THE TANZANIA SHIPPING AGENCIES ACT, (CAP.415) Construction 100. This Part shall be read as one with the Cap. 415 Tanzania Shipping Agencies Act, hereinafter referred to as the “principal Act”. Amendment of 101. The principal Act is amended in section 5, section 5 by- (a) deleting a semicolon and the word “and” appearing at the end of paragraph (g) and substituting for it a fullstop; and (b) deleting paragraph (h). Amendment of 102. The principal Act is amended in section 7 section 7 by deleting subsection (1) and substituting for it the following: “(1) The Corporation shall have exclusive mandate as to the carrying out of clearing and forwarding functions relating to import and export of arms and ammunition, mineral concentrates, chemical used by mining companies, Government trophies and Cap. 283 live animals under the Wildlife Conservation Act.”. Amendment of 103. The principal Act is amended in section section 12 12(1), by- (a) deleting the word “establish” appearing in paragraph (b) and substituting for it the word “enforce”; and (b) deleting the words “standards for the” appearing in paragraph (c). 35  No. 5 The Finance Act 2022 _____________________________________________________________________ PART XXXII AMENDMENT OF THE TAX ADMINISTRATION ACT, (CAP. 438) Construction 104. This Part shall be read as one with the Tax Cap. 348 Administration Act, hereinafter referred to as the “principal Act”. Amendment of 105. The principal Act is amended in section section 3 3(3) by adding the words “or any other electronic system” immediately after the word “machine” appearing in paragraph (a) of the definition of the term “fiscal device”. Amendment of 106. The principal Act is amended in section section 22 22, by- (a) deleting subsection (2) and substituting for it the following: “(2) Notwithstanding the provision of subsection (1), the Commissioner General shall- (a) register and issue Taxpayer Identification Number to every Tanzanian citizen who has been registered and issued with a National Identification Number under the Registration and Cap. 36 Identification of Persons Act; and (b) ensure each Taxpayer Identification Number issued is connected with a National Identification Number.”; (b) adding a proviso to subsection (3) as follows: “Provided that, for purposes of this Act, a registered person with a branch in Tanzania Zanzibar shall use Zanzibar Registration Number issued by Zanzibar Revenue Board.”; (c) adding immediately after subsection (4) the following: “(5) The provisions of subsection (2) shall come into operation on 1st January, 2023.”; 36  No. 5 The Finance Act 2022 _____________________________________________________________________ (d) renumbering subsections (5) to (8) as subsections (6) to (9) respectively; and (e) deleting the reference to subsection (5) appearing in subsection (7) and (8) as renumbered and substituting for it the reference to subsection (6)”. Repeal and 107. The principal Act is amended by repealing replacement of section 28 section 28 and replacing for it the following: “Licensing 28.-(1) Subject to of tax subsection (2), the Commissioner consultants General may licence an individual to act as a tax consultant on behalf of any person under a tax law for purposes of discharging the person’s obligation in a tax law. (2) The Commissioner General shall not licence an individual to act as a tax consultant under a tax law unless he is satisfied that the individual has fulfilled the conditions prescribed in the regulations or licence issued by the Commissioner. (3) A duly licensed tax consultant may act as an agent of a taxpayer under any tax law subject to conditions prescribed in the regulations or licence. (4) Except as otherwise provided for under this Act, an individual other than an employee or manager of a person, who is not licensed under this section, shall not act on behalf of such person or communicate with the Commissioner General on pretext of representing a person on any matter under any tax law.”. Amendment of 108. The principal Act is amended in section section 35 35(10) by deleting the date “1st July, 2021” and substituting for it the date “1st July, 2022.”. 37  No. 5 The Finance Act 2022 _____________________________________________________________________ Addition of 109. The principal Act is amended by adding section 37A immediately after section 37 the following: “Electro- 37A.-(1) Every taxpayer nic filing required to file return shall file the of tax returns return electronically on or before the due date as prescribed in the specific tax law. (2) The Minister may prescribe the form and manner in which the tax return shall be filed electronically. (3) Notwithstanding sub- section (1), the Commissioner General may, by notice in writing and under special circumstances, permit a person to file a tax return manually or by any other means.”. Addition of 110. The principal Act is amended by adding section 45A immediately after section 45 the following: “Registra- 45A.-(1) Any person who tion and establishes a storage facility with the monitoring of storage aim of keeping goods for business facility purposes shall register the facility with the Commissioner General. (2) The owner of the storage facility registered under subsection (1) shall keep records of all stored goods and report to the Commissioner General on monthly basis in the manner prescribed by the Commissioner General. (3)Where the Commissioner General satisfies himself that a storage facility has not been registered as required or goods have been kept without being reported as required under subsection (2), the facility owner shall be liable to a penalty of 300 currency points and be responsible to pay any detected loss of revenue with respect to undisclosed goods, whether the goods are owned by the storage facility owner or not.”. 38  No. 5 The Finance Act 2022 _____________________________________________________________________ Amendment of 111. The principal Act is amended in section section 65 65, by- (a) inserting the words “Subject to subsection (2)” immediately before the word “Where” appearing at the beginning of subsection (1); and (b) deleting subsection (2) and substituting for it the following: “(2) The provisions of subsection (1) shall apply where the default which occurred was due to fraud as it shall be proved in a court of law.”. Amendment of 112. The principal Act is amended in section section 82 82 by deleting the opening phrase and substituting for it the following: “Notwithstanding the provi- sions of a tax law relating to offence, a person who fails to comply with a provision of a tax law commits an offence and shall, on conviction be liable-”; Amendment of 113. The principal Act is amended in section section 86 86- (a) by deleting paragraph (b) appearing in subsection (1) and substituting for it the following: “(b) fails to issue fiscal receipt or fiscal invoice at the time of supply of goods, rendering service or receiving payment for goods or service;”; (b) in subsection (4) by deleting the word “for” appearing between the words “payment” and “goods” and substituting for it the words “or receipt of”. Amendment of 114. The principal Act is amended in section section 87 87 by adding immediately after subsection (4) the following: “(5) A person who is required to be registered or licensed under a tax law to perform any function and fails to apply for such registration or licensing within the 39  No. 5 The Finance Act 2022 _____________________________________________________________________ period prescribed by law or as may be notified by the Commissioner General commits an offence and shall, on conviction, be liable to a fine not exceeding 500 currency points or to imprisonment for a term not exceeding one year or to both.”. Addition of 115. The principal Act is amended by adding section 91A immediately after section 91 the following: “Excise duty 91A.-(1) A person who, offences contrary to the provisions of the Excise (Management and Tariff) Cap. 147 Act- (a) manufactures any excisable goods without being licenced by the licensing authority; (b) does not abide with any of the condition in a licence imposed on him or breaches any of the licence conditions given to him; (c) does not obey a suspension or revocation of his licence by the Commissioner together with any condition thereof; (d) fails to keep records with respect to manufacture, storage and delivery of excisable goods at his factory or place of work in the prescribed manner; (e) denatures spirits for sale without being licenced by the licensing authority and adopting the prescribed formula; 40  No. 5 The Finance Act 2022 _____________________________________________________________________ (f) fails to make entry or declaration, before commencing manufacture of excisable goods, of each building, room, place, machinery or equipment, item of plant for the manufacture, preparation for sale or storage of excisable goods; (g) makes use of any building, room, place, machinery or equipment or item of plant for manufacture, preparation for sale or storage of excisable goods without a valid entry; (h) makes use of a building, room, place, machinery or equipment or item of manufacture, preparation for sale or storage of excisable goods for purpose other than that declared in the approved entry; or (i) effects alteration in shape, position, or capacity of a building, room, place of manufacture or preparation for sale or storage of excisable goods without prior permission of the Commissioner, commits an offence and shall, on conviction, be liable to a fine not exceeding 330 currency points or 41  No. 5 The Finance Act 2022 _____________________________________________________________________ to imprisonment for a term not exceeding three years or to both. (2) Where a person who commits an offence under subsection (1) is a subsequent offender, such person shall, on conviction, be liable to a fine of not less than 330 currency points but not exceeding 3500 currency points or to imprisonment for a term of not less than five years but not exceeding twenty years or to both. (3) In addition to the penalty provided for under subsection (1) or (2), the court may issue an order for forfeiture of any plant, excisable goods or materials connected to the commission of the offence.”. PART XXXIII AMENDMENT OF THE TAX REVENUE APPEALS ACT, (CAP. 408) Construction 116. This Part shall be read as one with the Tax Cap. 408 Revenues Appeals Act, hereinafter referred to as the “principal Act” Amendment of 117. The principal Act is amended in section section 22 22, by- (a) deleting the words “through mediation” appearing in subsection (7); and (b) deleting the word “mediation” wherever it appears in subsection (8) and substituting for it the words “amicable settlement”. 42  No. 5 The Finance Act 2022 _____________________________________________________________________ PART XXXIV AMENDMENT OF THE TRUSTEES INCORPORATION ACT, (CAP. 318) Construction 118. This Part shall be read as one with the Cap. 318 Trustee Incorporation Act, hereinafter referred to as the “principal Act”. Amendment of 119. The principal Act is amended in section section 1A 1A by deleting the definition of the term “beneficial owner” and substituting for it the following: ““beneficial owner” has the meaning ascribed to it under the Anti- Cap. 423 Money Laundering Act;”. Amendment of 120. The principal Act is amended in section section 16 16, by- (a) deleting subsection (2) and substituting for it the following: “(2) Where- (a) a person ceases to be a trustee or a beneficial owner and a new trustee is appointed; (b) a person who becomes a beneficial owner or a trustee changes his name, residence or postal address; or (c) a beneficial owner changes his particulars pursuant to section 2(3), the trustees for the time being shall, within one month of the change, notify the Administrator General in the prescribed manner.”; (b) adding immediately after subsection (2) the following: “(3) Any trustee who fails to comply with the requirements of subsection 2 or section 2(2) commits an offence and shall, on conviction, be liable to a fine of not less than two hundred thousand shillings but not exceeding one million shillings.”; and 43  No. 5 The Finance Act 2022 _____________________________________________________________________ (c) renumbering subsection (3) as subsection (4). PART XXXV AMENDMENT OF THE VALUE ADDED TAX ACT, (CAP. 148) Construction 121. This Part shall be read as one with the Cap. 148 Value Added Tax Act, hereinafter referred to as the “principal Act.” Amendment of 122. The principal Act is amended in section 2 section 2 by adding in the appropriate alphabetical order the following: “alternative financing product” means any financial product approved by the Bank of Tanzania other than conventional financial products;”. Amendment of 123. The principal Act is amended in section 6- section 6 (a) by adding immediately after subsection (1) the following: “(1A) Notwithstanding the provisions of subsection (1), the Minister shall, upon approval by the Cabinet and by order published in the Gazette, grant value added tax exemption on goods or services for implementation of special strategic investments approved by the National Investment Steering Committee under the Cap. 38 Tanzania Investment Act.”; and (b) in subsection (2) by adding the words “as duly approved by the Minister” immediately after the word “services” appearing in the proviso to paragraph (e).” Amendment of 124. The principal Act is amended in section section 11 11(10) by adding the words “and Heading 87.16 and HS Code 8701.20.90 locally manufactured or assembled in a customs bonded warehouse” immediately after the word “Union”.” 44  No. 5 The Finance Act 2022 _____________________________________________________________________ Amendment of 125. The principal Act is amended in section section 64 64 by adding immediately after subsection (4) the following: “(5) Notwithstanding sub- section (1), where it is not practicable to appoint a tax representative due to his business circumstances, a non-resident person shall apply to the Commissioner to be registered in accordance with procedures prescribed in the regulations.”. Amendment of 126. The principal Act is amended in section section 69 69(1) by deleting the words “section 70” and substituting for them the words “section 68”. Amendment of 127. The principal Act is amended in section section 94 94(2) by adding immediately after paragraph (g) the following: “(h) prescribing the manner and procedure of dealing in loans, including alternative financing products approved by the Bank of Tanzania.”. Amendment of 128. The principal Act is amended in the Schedule Schedule- (a) in Part I- (i) by adding immediately after subitem 23 appearing in item 1 the following: “ S/N IMPLEMENT HS CODES 24. Ear tag 3926.90.90 25. Ear tag applicators 8456.90.00 26. Automatic turning table 8207.30.00 27. Stunning box 8438.50.00 28. Lessor beam machines 9402.90.90 ” (ii) by adding immediately after subitem 8 appearing in item 2 the following: 45  No. 5 The Finance Act 2022 _____________________________________________________________________ “ 9. Agro net 56.08 ” (iii) in item 3, by- (a) deleting the phrase “except with additives and long life milk” appearing in sub items 8 and 9; (b) adding immediately after figure “08.10” appearing in the third column of sub item 12 the words “and 0905.10.00”; (c) adding immediately after item 42 the following: S/N IMPLEMENT HS CODES 43. Standing tree 06.02 (iv) in item 4, by- (a) adding a “comma” and the figure “3926.90.10” immediately after the figure 5608.11.00 appearing in the third column of subitem 2; and (b) adding immediately after subitem 5 the following: “ S/N IMPLEMENT HS CODES 6. fishing hooks, reels and lines 9507.20.00 9507.90.00 9507.30.00 ” (v) in item 6 by adding immediately after subitem 10 the following: “ S/N IMPLEMENT HS CODES 11. Dairy packaging materials 3923.30.00 4819.10.00 4819.20.00 4819.20.90 ” (vi) by deleting item 18 and substituting for it the following: “18. Importation of arms and ammunition, parts and accessories thereof, equipment and machineries for the official 46  No. 5 The Finance Act 2022 _____________________________________________________________________ use of the armed forces as certified by the Ministry responsible for security and defence.”; (vii) by adding the words “up to 30th December, 2022” immediately after the word “services” appearing in item 22; (viii) by deleting item 27 and substituting for it the following: S/N DESCRIPTION 27. A supply of double refined edible oil from locally grown seeds by a local manufacturer for a period of one year from 1st July, 2022 to 30th June, 2023. 28. A supply of raw materials of HS Code 2836.20.00, 2836.30.00, 2836.50.00 and packaging materials to be solely and directly used by a local manufacturer of double refine dedible oil from locally grown seeds for a period of one year from 1st July, 2022 to 30th June, 2023. 29. A supply of sisal ropes of HS Code 5607.21.00 and 5607.29.00 (b) in Part II, by- (i) deleting item 20 and substituting for it the following: “ S/N DESCRIPTION 20. An import of machinery of HS Code 8438.50.00 and 8453.10.00 by a local manufacturer of hides and skins; and a registered abattoir for exclusive use of skinning, dehiding and leather processing in Mainland Tanzania duly certified by the Ministry responsible for livestock or fishery. ” (ii) deleting item 27 and substituting for it the following: “ S/N DESCRIPTION 27. An import of cold rooms of HS Code 9406.10.20, 9406.20.20, 9406.90.20 and refrigerated truck of HS Codes 8704.21.90; 8704.22.90, 8704.23.90, 8704.31.90, 8704.32.90, 8704.90.90 by a person engaged in livestock, fishery or agriculture duly certified by the Ministry responsible for livestock, fishery or agriculture. ” (iii) adding immediately after item 28 the following: “ 47  No. 5 The Finance Act 2022 _____________________________________________________________________ S/ DESCRIPTION N 29. An import of raw materials of HS Code 2528.00.00, 2710.99.00, 3505.20.00 and equipment and machineries of Chapters 84 and 85 to be solely and directly used in manufacturing of fertilizers duly certified by the Ministry responsible for industries. 30. An import of soil testing equipment of HS Code 9031.80.00, 9027.81.00 and 9027.89.00 as certified by the Ministry responsible for agriculture. 31. An import of moisture meter of HS Code 9031.80.00, rain gauge for weather stations of HS Code 9015.80.00, PH meters of HS Code 9031.80.00 tissue culture equipment of HS Code 8419.89.00 and tension meters of HS Code 9031.80.00 as certified by the Ministry responsible for agriculture. 32. An import of meteorological equipment and machinery by the Tanzania Meteorological Authority. 33. An import of raw materials of HS Code7208.39.00, 3810.90.00, 3401.19.00, 7904.00.00, 4016.93.00, 8481.10.00 and 8309.90.90 by a manufacturer of gas cylinders upon signing a performance agreement with the Government of the United Republic. ” PART XXXVI AMENDMENT OF THE VOCATIONAL EDUCATION AND TRAINING ACT, (CAP. 82) Construction 129. This Part shall be read as one with the Cap. 82 Vocational Education Training Act, hereinafter referred to as “the principal Act”. Amendment of 130. The principal Act is amended in section section 19 19(1), by- (a) adding immediately after paragraph (h) the following: “(i) intern students from higher learning institutions or technical and vocational education and training institutions who are under the Tanzania Employment Service Agency program;”; and (b) renaming paragraph (i) as paragraph (j). Passed by the National Assembly on the 28th June, 2022 NENELWA J. MWIHAMBI Clerk of the National Assembly 48