.

----
" i

. --~ ~-------
~~

"

1-_ I ISSN 0856 - 033IX

TilE UNITED REPUBLIC OF TANZANIA

~--" ~-~ -.
.ACTSllEELEMENT
No. '5

/0 the Special Gazelle of the United Republic afTanzania '\'0.5 Vol. 92 dated 3d" JUlie, 20/0

Printed' by the Government Hrinter. Dar es Salaam by Order of Government

THE FINANCE ACT, 20 II

ARR;\!\fGEMI'::'\T OF I',\RTS
Part Title
PART I PRELl MINAR Y PROVISIONS.
PART q AMENDMENT OF TI IE BUSINESS ACTIVITIES
REGISTRATION ACT, (CAP. 2(8).
PART III AMEJ:JDMENT OF THE EXCISE (MANAGEMENT AND
TARIFF) ACT, (CAP. 147).
PART IV AMENDMEf\T OF THE FOREIGN VEHICLES TRANSIT
CHARGES ACT, (CAP 84).
"

PART V AMEt\DMENT OF TIlE HIGHER EDUCATION

STUDENTS' LOANS BOARD ACT, (CAP. 178). .
PART VI AMENDMENT OF THE INCOME TAX ACT, (CAP. 332).
P
FINA~CE ACT. (CAP. 290).
~1
PART VIII AMEf\DMEi\T OF THE ROAD AND FUEL TOLLS ACT
(CAP. 220):
L
PART IX AMENDMENT OF TIlE ROAD TRAFFIC ACT, (CAP.
168).
PART X AMENDMEf\T OF THE STAMP DUty ACT, (CAP. 189).
I
PART Xl AMENDMENT OF 'IlIE VALUE ADDED TAX ACT, (CAP.
148).
! PART XII AMENDMENT 01: TilE VOCATI(j~1\t~ EDUCATION AND
TRAINING ACT, (CAP. 82).
1
1
j
l
 2011
Finance
No.5

TI-IE UNITED REPUBLIC OF TANZANIA

No.50F2011
I ASSENT,
JAKA YA MRISHO KIKWETE,
President
28(h June, 2011

An Act to impose and alter certain taxes, duties, levies, fees and to amend
certain written laws relating to the collection and management of
public revenues.
ENACTEDby Pari iament of the United Republic of Tanzania.
PART I
PRELIMINARY PROVISIONS

Short title 1. This Act may be cited as the Finance Act, 2011.

Commence- 2. The provisions of various Parts of this Act shall come into
15( day of July, 2011. Unless it is otherwise stated.
ment operationon the
PART 11
AMENDMENT OF THE BUSINESS AcnvrrlES REGISTRATION ACT, (CAP. 208)

Construction 3. This Part shall be read as one with the Business Activities
Cap. 208 Registration Act, hereinafter referred to as the "principal Act".

Repeal and 4. The principal Act is amended by repealing section 15 and

replacement of replacing for it the following new provisions:
section 15 15.-( 1) Subject to subsection (2), every business
"Validity
of registration shall be valid for the entire life of the
registra- business.
tion (2) There shall be required for every business
registered under this Act, a licence.
3 -
 No. 5 Finance 2011

(3) The licence shall be valid for a renewable period

of twelve months., '
(4) A local government authority, may upon
consulation with the Minister responsible for trade and
with the approval of the Minister responsible for finance,
make by-laws for imposition of charges or fees for
vari>oustypes or categories of licences issued in respect of
businesses registered under this Act; provided that village
council may, with the approval of the District Council
within whose juris9iction the village council is situate,
make by-laws for imposition of charges or fees for
various types of business licences in respect of businesses
operating within the area of jurisdiction of the village
council.
(5) It shall be a duty of a local government authority,
wherever required, to furnish the Minister with
information relating to licences issued within its area of
jurisdiction; provided that village council shall, wherever
required, furnish the District Council within whose
jurisdiction the village council is whose jurisdiction the
relating to licences issued within its area of jurisdiction.
(6) The licensing measures stipulated under this
sl
section shall commence on the 1 day of January, 2012."

PART III
AMENDMENT OF THE EXCISE (MANAGEMENT AND TARIFF) ACT, (CAP. 147)

Construction 5. This Part shall be read as one with the Excise (Management and
Cap. 147 Tariff) Act, hereinafter referred to as the "principal Act".

Addition of 6. The principal Act is amended by adding after section 56 the

new section following new section:
56A
"Intereston 56A-(I) Where any amount of tax, including penalties
overduetax imposed under this Act, remains unpaid after the due
and payment
date prescribed under this Act or its regulation, interest
at the rate prescribed in subsection (2) shall be payable
to the Commissioner General on the amount for the time
being due and unpaid.
(2) The rate of interest chargeable under subsection
(1) shall be commercial bank lending rate of the Bank of
Tanzania discount rate at the' start of the year and a
further five per cent per annum.
(3) Tue interest payable under this section shall, while
-
4
No. 5 Finance 2011
.
remain unpaid, " attract interest as ir it is part of the
unpaid tax.
(4) Interest payable under this section shall be
compounded at the end of each prescribed period,
accounting period or part of such period of the taxable
person during which the tax and any interest due remain
.unpaid unless the Minister prescribed otherwise.
(5) The COJnmissioner may remit in whole or in part
any interest charged under subsection (2) if the person
liable for the interest shows good cause.

(G) Where any tax is due to be repaid to a taxable

person by the Commissioner-General under this Act
remains unrerunded aileI' the due date, the
Con'lmissioner-Gencral shall pay interest to the taxable
person at the commercial bank lending rate or the Bank
of Tanzania."

.5
 No. 5 Finance 2011

Amendment of 7. The principal Act is amended in section 58, by deleting the word
section 58
"twelve" appearing in the proviso to that section and substituting for it
the words "thirty six".

Amend- 8. The principal Act is amended in the Fourth Schedule by deleting

ment oj' the rates or excise duty specified in the Firth Column which are
the Fourth
Seheulilc
currently imposed on items specitie(! in the Third Column and
substituting for them the rates speciJied in the Sixth Column:

.. FOURTH SCHEDULE

lis Code --I)CSl'ri[)ii~-TI~ii ()l;J-- -r ~ew i~ejs~l{ates -

lIeadin~ '

Excise
Rate _-0_---.---
-.--.--_.- -- -"
22.01 \Vaters. including
natural or artilicial
mineral \vaters and
aerated waters. not
containing added
sugar or other
sweetening matter
or Ilavoured. ice
and snow.
~-~-
' ,--.._-- +
'---
220UO.()O - Mineral waters Tshs 69.00 per
and aerated waters Litre
~_.-
---"--- --- - -------------------
2201.'J0.()O - Other(bottled Tshs 69.00 per
.. a~1l1packe~-,yaterst Litre ~---~----
--.---------- ----- -
Water, including
22.02 mineral waters and
aerated waters,
containing added
sugar or other
sweetening muller
or Ilavoured, and
other non-
alcoholic bevera-
ges. not including
fruit or vegetable
juices oj' heading
4____
J ----_.---.--
2202.10.00
NO.20.09
- Waters, including
mineral waters and
Tshs 63.00
per litre
------
Tshs (,9.00 per
Litre
aerated waters.

I _ _ _.c.oI1ta~11i~11!~t.dded_.._

6
-
._+ ~
-
 2011
No, 5

---- Old i'iew Excise Rates

Description Unit
lIeading lis Code
Excise
Rate
. -~- -------
sugar or other
sweetening mailer
or tlavoured. ~--- -
---'- ()<).()O pcr
.-- .1 Tshs.63.00 Tshs
2202.90.00 ---Other Litre
_'.__ _p<;.rLi!n: --- -- -------
---- ----
Beer IlIa,,!.: from
22.03
malt
.-~.~ ~-- Tshs 420.00 per
Tshs.
2203.00.10 ---Stout and porter
382.00 per Litre
Litre
+

Tshs. Tshs 420.00per

2203.00.90 ---Other
382.00 per Litre
Litre
l. <
,..--..----

22.04 Wine of fresh

grapes. including
fortified wines;
grape must other
than that of
__,. __heading No.20}.~.?~,_ _,_
0 4 -"
nSparkling wine __0-----------------
---.-- --. -----------.- Nil Tshs '120.0() per
2204.10.1 0 --- With the
litre
domest it: grapes
content exceeding
75% ----
-------..-.------- Tshs. Tshs 1.34500 per
2204.10.90 --Other
1,223.()0 Litre
x:r Litre
--------
--Other wine: Tshs 1.223 Tshs 1.3.1500 rer
grape must with Per Litre Litre
knnentation
prevented or
arrested by the
addition of
alcohol.
.. -<-
-- - --'
--In containers
holding.2_L~)[
less ---------------Tshs 420.00 per
'n___'
n_ With the 1
' 2204.21.1 0
litre
domestic grapes
content exceeding
75% .---... .----.- -------------
~ -' 2204.21.90 Tshs. Tshs 1.3,15.00 per
---Other
1,223.00 Litre
__ ~ _~ ..r£!J.itr~__ .- -
204.29.90 ---Other 1 Tshs. Tshs 1.345.00 per
1,223.00 Litre

n_._~
~ _"__"'__~_
u__

2204.30.10
~
nOther grape must
nWith the --.,

7
1 '.-
~it~c

-:

.-~ Nil ._-

----.--

---..------...-------------.-
Tshs 420.00 per
l -------...---------
 Finance 2011
No.5

---
IIcadin~
--~---
lis Cude
-
Description l;,ni~ Old New Excise Rates
Excise
Rate
--~-..---- -----
domestic grapcs
--- ---- --------
litre
contcnt execeding
0 ________ ~-_..__._-- --------.-...-----...--
220~.30.90 --OtheI Tshs. Tshs 1345.00 per
1.223.00 Litre
0..-_---. _~rLit~~..-- ___n....______
-.-" -- .- --- -
Verrnollth ,md
22.05
other wine of fresh
grapes tlavoured
with plants or
aromatic
_sll~stal!Ccs ._~ .________
------- --In containers

~.._-----
_~'lj!lli£!..{)E.~.s~_ -_________
Nil Tshs 420.00 per
2205.10.10 n' With the /
domestic grapes litre
content exceeding
E_"l'o ___________
----- 2205.10.90 n-Ot her Tshs. Tshs 1.345.00 per
1.223.00 Litre
~!J!.r~__
-~ -.,'" - _.---- -
--Other ~
,----- Nil Tshs 420.00 per
2'2iI5.90.1"" -:--wiihi!~'---
domestic grapes litre
content exceeding
75(~-o
-- -- ---~--_.--------
~
--- -.--.--.-- ---- j
,.--",--'-'--"'-
2205.90.90 n-Other Tshs. Tshs 1,345.00 per I

1.223.00 Litre I
.2e~~itrc__ ~-----_._-
---.--.-.---.-- -..--.-.-. ---
22.06 Othcr fermcntcd
beverages (j()r
examplc, cider.
perry. mead)
mixtures of
lermented
bcverages and
mixtures of
1ennentcd
beverages and non
alcoholic
beverages, nol
elsewhere
specified or
incl udcd ___h.
2206.00.IU.. ~~- Cide~h--- 7 ~- :j'sh5 1~345~OcJPcr
__, '._ Jd~____..___ -
2206.00.20 ---Beer madefrom / Tshs.. Tshs 249.00 per
______ IQQ~\Jo~I .2~6}2i).~r _!J!~~_~_______ ~
8
No.5 Finance 2011

---
lIeadin~ lis Code Uescriptio.n , Cnit Old.~-- ---
I'\ew t:xcise I{ates
Excise
_4 _______.__ Rate
unmalled cereals _6_- Litre
-.---.- -------_..
n_ Others --
2206.011.90 Tshs 420.00 per
(including energy litre
drinks and and non
alcoholic
~ ~' -- b~~.enlge~1 u. ._---- ~
------
Undenatured ethyl
alcohol of an
alcohol ie strength
by volume of less
than SO% vol;
spirits. liqueurs
and other
spirituous
.~e\~r.:lg~: _..__.
22I1H.20.00 -Spirits obtained I Tshs. Tshs 1.993.00 per
by distilling grape IS12.00 per Litre
_ \~n_e.<!r.gr.ap~.!!!:~~c... ~___ _ _ Litre
__ _ ~_~. 4______.__
220H.30.00 -Whiskies Tshs. hhs 1,1J1J3.()O
per
IS12.00 per I.itre
_. ~. Litre -_. ~-_.._---_.-
2208.40.00 .Rum and other Tshs. Tshs 1.993.00 per
spirits obtained by IS12.00 per Litre
distilling Litre
Icrmented sugar-
_.,~_._- c.~P!oduet~ _._
--.--..------ --....----
22I1H.50.IIO -Gin and Geneva Tshs. Tshs 1,993.00 per
IS12.00 per Litre
~-_. ..---....---.. Litre
~__4 ,.____
--- - -....--.-
220H.60.00 -Vodka Tshs. Tshs 1.993.00 per
IS12.00 per Litre
0_" ___..__
..-.----
Litre
-.-.--....----- , -:rSI;;-'--- -Tshs--j-:993.00
-;;er
220H.70.00 -Liqueurs and
cordials 1H12.00 per Litre
._~ ~_._--- Litre
- " -Orher
-.-....-. ".._~ --"---- -. ----
200H.90.1IJ mDistilled Spirits Tshs. hhs 1.993.00 j1er
(e.g. Kon)'agi. 1II12.00 per I.itre
.....-...---.... -.-..- Ugand".V:!aragiL.. Litre
-~-" -------..-
220H.90.90 -..Other Tshs. Tshs 1.993.00 per
I X12.00 per Litre
l.itre
24.02 - -- --.- Cigars:-dlerOl)'iS:-
.---..- -.----..-

cigarillos and
cigarettes, of
tooaeeo or of

..
tobacco
suhstitutes. 0--_- ~ ~.
---~-"."-"
-
""

9
 Finance 2011
No.5
-----. DescriPtio;- . . Old- New E~~ise Rates
r-;--------
lIeading lis Code ;t~Unit,
-' Excise

C
,

,.--
Rate ---
.-
~ u
~_._+__
+

- Cigarettes
containin tobacco ----.-----
___ Tshs. Tshs 6.830.00 per
2402.20.10 Without tiltcr tip mil
6,209.00 mil
and contah1ing
domestic tobacco per mil
contents exceeding
75%. --'-- ---..-- -----
-<
mil Tshs. Tshs 16,11'\.00 per
2402.20.90 ---With tilter tip mil
14,649.00
and containing
domestic tobacco per mil
-----------
~xce~ding 75%__
------------ mil Tshs. Tshs 29,264.00 per
---Other
26,()04.00 mi I
££r:.11!~_ ~
~_.-

-.--.---.--- -------------
24.03 Other
manufactured
tobacco and
manul~\ctured
tobacco
substitutes:
'-homogenizcd" or
"reconstituted"
tobacco: tobacco
extracts and essences.
_________._
~_._ 0
--Smoking
tobacco, \\hether
or not containing
tobacco substitutes
J~~1J1~~rt~~___
kg-- ~f~--- --T;;h;,J4-.780.00-~-
2403.\ 0.\ 0 ---Cut rag/tiller
13,436.00 kg
_~r~__
-~-------. .-------
27.\0 Petroleum oils and
oils obtained from
bituminous minerals,
other than crude:
preparations not
elsewhere sped lied
or included, containing
by weight 70% or
more of petroleum
oils or of oils
obtained from
bituminous minerals.
these oils being the
basic constituents
()f the preparations:

0-_- ~
waste oils 0 ______
-------------------
~-- -----------.-----
]0
 Finance 2011
No.5

~ -~--- New Excise Ratcs

------.---
lIeading lis Code Description Unit Old
Excisc
Ratc
~---- Tshs. 52 Tshs. .100.30
2710.19.31 Illuminating
Kerosebe (IK)
------ Gas oil Tshs. 314 Tshs.215
2710.19.31
(automotive, light.
amber for high
"---------
speed cnginesL . __~ __~------ per
--" 2710.19.41 Residual fuels Tshs. go.00 Tshs. .10.00
oils (marine. per Litre Litre
furnaces and
similar fuel oils) of
i 2710.19.42
ISO centistokes.
---
Residual fuels
Tshs. 80.00
~
----------
Tshs. 40.00 per
oils (marine, per Litre Litre
furnaces and
similar fuel oils) of
ISO centistokes.
- - Tshs s6.00' ;rshs. .IOOO---P;;:'
'--'2"710.19.43 R-~sidua"lfuels
oils (marine, per Litre Litre
furnaces and
similar fuel oils) of
2S0 centistokes. .
-------
2710.19.49 _ m-Other residual Tshs. SO.OO Tshs. tlO.OO per
__ .J:u\:-'--~s___~__~ . per IJ.~_ Litre
39.23 Article for the
conveyance or
packaging of
goods, of plastics:
stoppers, Iids, caps
and closures. of
_._ __.n._~~!Cs .____. ~-~_.
-Sacks and bags
.<i.nclu~~~:!!SL
----------------
3923.21.00 -Of polymers of kg I2o'Yo 50%
_nU ..!:~h~lene _
"- ~_..
-Of other plastics Kg 120% 50%"
~ ~
-....---.-----.

PART IV
Ai\1ENDivIENT OF TilE FORUGN VEHICl.ES TRi\!\'SIT CI \AR(,I':S ACT, (CAP. 84)

Construction 9. This Part shall be read as one with the Foreign Vchicles Transit
Cap.84 Charges Act, hereinafter referred to as the "principal Act".
Amendment of 10. The principal Act is amended in the Schedule by inserting
-
the Schedule immediately after the words "convertible currency" appearing in
itcm I, the words "or Tanzanian shillings".
11
 ,
No.5 Finance 2011

PART V
AMENDMENT OF TJ IE IIIGIIER EDUCATION STUDENTS' I,OANS BOARD ACT, (CAP.
178)

Construction of 11. This Part shall be read as one with the Higher Education
Cap. 178
Student's Loans Board Act, hereinafter referred to as the "principal
Act. "

Amendment of 12. The principal Act, is amended in scction 25, by-

section 25
(a) inserting immediately after paragraph (c) the
following paragraph:
"(d) skills and development levy as
providcd for under the Vocational
Cap. 82
Education and Training Act."
(b) designating paragraphs (d) and (e) as paragraphs (e)
and (I) respectively.

PART VI
AI\1END~1ENT
OFTilE INCOMETAX ACT, (CA/'. 332)

COlistruetion 13. This Part shall be read as one with the Income Tax Act,
Cap. 332
hereinaftcr referred to as the "principal Act".

Amendment 14. The principal Act is amended in section 7(3), by-

of section 7
(a) deleting the word "and" appearing at the end of
paragraph "(h)";
(b) deleting a "full stop" appearing at thc end of
paragraph "(i)";
(c) adding immcdiately alicr paragraph (i) the following
new paragraphs:
"0) allowance payable to an employee who
offers intramural private services to
patients in a public hospital;and
(k) housing allowance, transport allowance,
responsibility allowance, extra duty
allowance, overtimc allowance, hardship
allowance and honoraria payable to an
cmployee or the Government or its
institution whose budget is fully or -
substantially paid out of Government
budget subvention."

12
 No.5 Fi/wn(e. 2011
. I,

Amt.:ndmt.:IIt 15. The principal Act is amended in section 69, by insel1ing the
of st.:cti01169 words "or outside" between the words "in" and "the" appearing in
paragraph (h).'"

Amt.:ndmt.:nt 16. The principal Act is amended in section 90, by-

of st.:ction 90
(a) adding immedi'atcly alter subsection (3) a new
subsection (4) as follows:
f
I "( 4) Subsection (3) shall not apply to
payment received in respect of carriage of fish by a
foreign aircraft."
f (b) renumbering suo-sections (4), (5) and (6) as sub-
sections (5), (6) and (7) respectively.

Amcndmcnt 17. The principal Act is amended in paragraph I of the Second

ofthc Second Schedule, by-
Scht.:dule
(a) deleting item "(0)" and substituting for it the
f()lIowing:
"( 0) income derived from investment or business
conducted within the Export Processing
Zone, and Special Economic Zone during
initial period often years;";
(b) adding immediately (~ner item "(u)" the following new
items:
"(v) payment of withholdil1,' tax on dividend
arising from invesll::~'lll in the Export
Processing Zonc and Special Economic
Zone during initial period often years; and
(w) payments of withholding tax on rent
payable oy an investor licensed under the
Export Processing Zone and Special
Economic Zone during initial period of ten
years, provided that the rent is payable to an
investor licensed under the Economic
Processing Zones or the Special Economic
Zones."

PART VII
AMENDMENTOF TIlE LOCAL GOVERNMENTFlNAMT ACT, (CM. 290)
-
Construction 18.-( I) This Part shall be read as one with the Local Government
Cap. 290
Finance Act hereinalter referred to as the "principal Act".

13
 ...

No. 5 Finance 2011

Amendment 19. The principal Act is amended in section 8( 1), by adding

of section 8 immediately after paragraph (m) the following new paragraph:
"(n) all moneys derived from fees for licences issued under
'the Business Activities Registration Act, in respect of
business premises situated within the area of the
township authority."

Amendment 20. The principal Act is amended in section 9( 1), by adding

of section 9
immediately after paragraph (i) the jc)llowing new paragraph:
"U) all moneys derived from fees fc)r licences issued under
the Business Activities Registration Act, in respect of
Cap. 208 business premises situated within the area of the village
authority."

Addition new 21. The principal Act is amended by adding immediately after
section 67 A
section 67 the t()llowing new section:
"Exemption 67 A. There shall be exempted all taxes
and levies imposed by local government
authorities for products produced in the Export
Processing Zone and Special Economic lone
during initial period of ten years."

PART VIII'
AMENDMENTOF TIlE ROADAND FUELTOLLS ACT, (CAP. 220)

Construct ion 22. This Part shall be read as one with the Road and Fuel Tolls Act
Cap. 220
hereinafter referred to as the "principal Act".

Amendment 23. The principal Act is amended in section 7(4) by inserting

lJf section 7
immediately after the word "currency", the phrase "Tanzania shillings
or equivalent in convertible currency".
PARTIX
AMENDMENT OF TIlE ROAD TRAFFIC ACT, (CA!'. 168)

Construction 24. This Part shall be read as one with the Roads Traffic Act
Cap. 168
hereinafter referred to as the "principal Act".

Amendment 25. Section 95 (9) of the principal Act is amended by-

-
lJf section 95
(a) deleting the words "forty shillings" and substituting fc)r
them the words "three hundred thousand shillings";
14
 No.5 Fj,l,ance 2011

(b) deleting the proviso appearing at the end of subsection

(9) and substituting for it the following:
"Provided that, the Minister may, in
an order made under subsection (I) specifying
an offence to which this section applies or by
any subsequent order, prescribe in relation to
any offence so specified a penalty of not less
than twenty thousand shillings but not
f
I exceeding thil1y thousand shillings.'"
PART X
AMENDMENT OF TIlE STAMP DUTY ACT, (CAP. 189)

Construction 26. This Pm1 shall be read as one with the Stamp Duty Act
Cap. 189
hereinafter referred to as the "principal Act".

Amendment 27. The principal Act is amended in the Schedule by-

of the (a) deleting the "exemptions" appearing after item (c) of
Schedule
paragraph 22 and substituting for them the following:
"Exemptions:
(a) conveyance of any property
under the Admin istrator
General (Powers and
Cap. 27 Functions) Act to a trustee,
heir or beneficiary if falling
under Article 60(c);
(b) conveyance of any property
under the Export Processing
Cap. 373 Zones and the Special
Economic Zones;
(c) conveyance on the transfer
of the assets to the Special
Purposes Vehicles (SPV) for
the purpose of issuing asset-
backed securities. This
exemption shall be limited
to construction of transport

(b)
infrastructures
projects. "
and utilities

deleting figures "( 1) and (2)" appearing in paragraph

-
23 and substituting for them "(a) and (b)" respectively;
(c) deleting the "exemptions" appearing under paragraph

15
No.5 Finance\
2011
"

34 and substituting for them the 1()llowing:

"Exemptions:
(a) claims issued under the
Mining Act and regulations
made thereunder;
(b) hypothetication or lease of (Uly
movable or immovable property as
provided lmder the ExpOl1
. ,,73
cap. "
Proc~singZones Act;"
(d) inserting under item (b) of paragraph 39 the following:
;.
Exemptions:
A mortgage bond as provided undcr the
Export Processing Zones Act."
Cap 373

PART XI
AMENDMENT OF TilE V AWE ADDED TAX ACT, (CAP 148)
Construction 28. This Part shall be read as one with the Value Added Tax Act,
Cap.14~
hereinatler referred to as the "principal Act".

Amendment of 29. The principal Act is amended in section 16(5) by deleting the
section 16
words "one year" and substituting Jor them the words "six months".

Amendment of 30.-(]) The principal Act is amended in section 17, by-

sect ion 17
(a) inserting immediately atier sub-section (5) the
f()lIowing:
"(6) An auditor shall be dercgistered as a
tax consultant i I' he is proved to have
conspired with a taxpayer to fraudulently
issue a cel1ificate of genuineness,"
(b) renumbering subsections (6), (7) and (8) as
subsections (7), (8) and (9) respectively.

Addition of 3 I. The principal Act is amended by adding a new section 17A as ,.

section 17A
lollows:
"Foreign "17A.-(I) A passenger who is not a citizen of
passenger -
Tanzania who purchases goods on retail in
tax refund
Mainland Tanzania may claim to the Authority
lor tax refund.
(2) A claims t()f' tax refund shall be made by

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 No.5 Finance 2011
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the passenger-
(a) when exiting through Julius
Kambarage International Airport
or the Kilimanjaro International
Airport points only; and
(b) by submitting the original fiscal
receipt of goods and declaring the
goods purchased.
(3) Any amount of tax refundable in respect
of any goods purchased shall not be refunded to
. the passenger if:
(a) the claim for the refund is
received six months after the date
shown on the fiscal receipt;
(b) the purchase made is detennined
to be not less than Tanzania
Shillings 400,000/=; and
(c) the goods have been used or the
package seal of the goods has
been broken.
(4) This sectionshall come into force on the
1st January, 2012."

Amendment of 32. The principal Act is amended in the Second Schedule, by-
the Second (a) deleting in paragraph 8(2) the phrase "the National
Schedule
Housing Corporation or";
(b) adding in paragraph 9 immediately after
subparagraph (8) a new paragraph (9) as follows:
"(9) The payment of contributions by
employees and employers to a social
security fund or scheme."
(c) deleting the words "and hay" and substituting for
them the phrase "hay and Nascor Pellet feed
appearing in paragraph 13;
(d) adding in paragraph 17 'the phrase "Nylon fishing
twine," at the beginning of item (a)."

Amendment of 33. The principal Act is amended in the Third Schedule by-
theThird (a) deleting the whole of paragraph 8 and substituting for
Schedule
it the following:
"8.-( 1) The importation by or supply to a
registered and licensed explorer or
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No. 5 Finance 2011

prospector of goods or services to be used

exclusively for exploration or prospecting
activities.
(2) The importation by or
supply to a registered and
licensed mining company
which has a mining
development agreement
with the Government
executed before 1st July,
2009."
(b) deleting the whole of paragraph 10 and substituting it
for the following:

"10.-(1) The importation or local purchase

of goods or services, by or on behalf of a
registered religious organizations or
institutions, which are intended to be used
solely by the organisation or institution for-
(a) the advancement of religion;
(b) relieving persons from the
effects of natural calamities,
hazards or disaster; and
(c) the development,
maintenance or renovation
of projects relating to health,
education, training, water
supply, infrastructure or any
other projects relating to
advancement of the
community.
(2) The importation or local purchase by
charitable community based or other non
profit driven organisation of household
consumables for subsequent supply to'
orphanage, day care centres and schools.
(3) The organization or institution shall,
before obtaining the relief granted under
subparagraphs (1) and (2), submit to the
Authority a letter confirming the existence
of the project or projects in question from -
the District Commissioner in its area and
from the umbrelIa organization, ifany.
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 No. 5 Finance 2011

(4) The relief under this paragraph shall

be granted upon submission of proof that
the goods or services relieved are to be used
exclusively for the purpose of the project.
(5) The registered rc!i.gious, charitable
communitybased cr other non-profitdrivcn
organization or institution shall be required
to submit to th~ Authority their annual plans
detailing each of the projects intcnded for
implementation before the commencement
of the Government fiscal year.
(6) Thc registered religious, charitable
.
/ community bascd or othcr non-profit drivcn
organization or institution shall bc obligcd
to account for the utilizcd rclicf on goods or
scrviccs.
(7) For purposes of this Part, household
consumables shall include food, clothing
and toilctries."
(c) inserting the words "non utility" between the words
"include" and "motor" appearing in paragraph 19;
adding immediately after paragraph 19A a ncw
paragraph 1913as follows:
"19B. The importation or supply to
an investor liccnsed under thc Spccial
Cap..120 Economic ZOIles Act, of raw matcrials
and goods of capital nature dircctly
relatcd to manufacturing in the Special
Economic Zoncs including ambulances,
fire lighting vehicles, and firc fighting
equipment."
(e) in paragraph 32, by-
(i) adding immediately aftcr
subparagraph (I) the following new
subparagraph:
"(2) The Supply' of
spare parts for eombincd
harvesters, threshers, rice
dryers, mills, planters,
trailers, power tillers, -
tractor grain conveyors,

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 No. 5 Finance 2011
,
\

sprayers and harrows to a

farmer."
(ii) re-numbering subparagraph "(2)" as
subparagraph (3).

PART XII
AMENDMENT OF TilE VOCATIONAL EDUCATION AND TRAINING ACT,
(CAP 82)

Construction of 34. This Pm1 shall be read as one with the Vocational Education
Cap 82
and Training Act hereinafter referred to as the "principal Act."

Amcndmcnt of 35. The principal Act is amended in section 15, by deleting the
section 15 word "Treasury" and substituting for it the phrase "Higher
Education Students' Loans Board".

Passed in the National Assembly on the 22no June, 2011.

DR. THOMAS D. KASIIlLILAII,

Clerk of the National Assembly

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