Tanzania Budget Speech 2021

THE UNITED REPUBLIC OF TANZANIA

SPEECH BY THE MINISTER FOR FINANCE AND PLANNING, HON. DR. MWIGULU LAMECK NCHEMBA MADELU (MP), PRESENTING TO THE NATIONAL ASSEMBLY, THE ESTIMATES OF GOVERNMENT REVENUE AND EXPENDITURE

10thJune2021 Dodoma

“I urge businessmen to pay taxes. It is neither right nor fair for them to evade taxes. Evading taxes will make our Government fail to provide essential services for the people. Our hospitals will run out of medicines that may lead to deaths, Government employees will not get salaries and other statutory benefits and students will be denied fee free education which is granted to them”

Her Excellency Samia Suluhu Hassan The President of the United Republic of Tanzania

14th May 2021

I. INTRODUCTION 1. Honourable Speaker, I beg to move that your esteemed House resolves to receive, debate and approve the Government’s Revenue and Expenditure Estimates for the financial year 2021/22. This speech presents the first national budget of the Sixth Phase Government under the leadership of Her Excellency Samia Suluhu Hassan, President of the United Republic of Tanzania. The Estimates of the Government Revenue and Expenditure are submitted to your esteemed House in accordance with Article 137 of the Constitution of the United Republic of Tanzania of 1977; Section 23 (3) of the Budget Act, CAP 439; and Article 124 (4) of the Standing Orders of Parliament, June 2020 Edition.

2. Honourable Speaker, together with this speech, I submit four volumes of budget books: Volume I provides Revenue Estimates; Volume II provides Recurrent Expenditure Estimates for Ministries, Independent Departments and Agencies; Volume III covers Recurrent Expenditure Estimates for Regional Secretariats and Local Government Authorities; and Volume IV is for Development Expenditure

Protected Areas as per distribution percentage shall be as Marine Parks and follows: Reserves Act. The distribution percentage shall be as follows:

(i) Marine Parks and (i)Marine Protected Areas- 70% Marine Reserves (MPRU) - 70%

(ii) District Authorities - (ii) District Authority(ies) - 5% 10%

(iii) Local Communities - (iii) Local Communities - 10% 20% (iv) Remittance to Government Consolidated Fund -15%

to on the the

peace, peace, victory victory

2021 are 2021 are health to health House with irst and first and Independent n that, the n that, the nt, Members

Bill integrity under , this is the first landslide , ies, to continue leading to with with

evelopment. great expectations expectations great as well as giving us giving well as as our country our country granting me

which CCM was given given CCM was which

Ministr and 3 in leaders ess citizens trust national d solidarity I would like to thank thank to I would like . In addition, the Finance Bill theIn addition, Finance . God for

and and strong Honourable Speaker Honourable Speaker Honourable CCM for our Parliamentary Budget Session following the following BudgetParliamentary Session of theGeneral Preside Election of Parliament and Councillors held in in held and Councillors of Parliament October 2020, consent by the and great The our country. people have Chama Cha Mapinduzi (CCM). show CCM has achieved by firm unity, stand before your esteemed your stand before presentGovernment the Budget for the for I thank God Further, year 2021/22. continuing to bl foremost, Almighty part of this budget. 1 and the2021 and Appropriation Estimates for Estimates for Regional Agencies, Departments, and Local Secretariats Government Authorities 4. 3.

5. Honourable Speaker, it will be recalled th

that, on 17 March 2021, our nation suffered a great loss of the Fifth Phase President of the United Republic of RECOMMENDED Tanzania, the late Dr. John Pombe Joseph (ii) Magufuli. I would like to express my sincere RECOMMENDED RECOMMENDED condolences to Her Excellency Samia Suluhu Hassan, the President of the United Republic of Tanzania, your esteemed House, family members especially Mama

Janeth Magufuli and all Tanzanians for this its . loss. The late Dr. John Pombe Joseph day as as day

Magufuli will be remembered for his strong .

metimes as as metimes mit of 15% and firm leadership with high level of The Unit has to Unit has The re to gross revenue Government Consolidated Fund Stakeholders Stakeholders to pay requested per so be film can day in a finalized to two due or technological advancements patriotism that brought positive economic

6 and social changes to our country. I would US$ - -

-- also like to take this opportunity to extend US$ 200.00 US$ 200.00 $ 50,000 S$ 100 per US

------

U my condolences to Tanzanians for the loss COMMERCIAL FILMING FEESCOMMERCIAL Reserves The Act. ---

fees fees of Honourable Maalim Seif Sharif Hamad, ------shall pay -----

----- . the former First Vice President of the

----

. . Revolutionary Government of Zanzibar and rtion of net from userrevenue

copter Eng. Ambassador John William Herbert REVENUE SHARING AMONG MPRS AND AND MPRS KEYREVENUE SHARING AMONG STAKEHOLDERS prime areas prime per year still of i.e. type, capture any Image picture motion photograph, stillphotograph, or conventional commercial video imaging, for or Marine Park in any purposes, Reserve Marine A po amongMPRU, the shared shall be fee Local Councils District and vicinity of in the Communities per as Protected Areas Marine Parks and Marine Item New to be guides shall Tour required (iv) tour guiding pay per day landing Landing fees seaplanes fees and for (iii) Landing heli year 50 per

Kijazi, the former Chief Secretary. May their - ies per t souls rest in eternal peace Amen! 0 ven (7)ven e night , still or , still or

arine Reserve Reserve arine 6. Honourable Speaker, I would like to f up to s

. services (e.g. services user user shall befee

or M take this opportunity to sincerely e vicinityMarine of e

. th congratulate Her Excellency Samia Suluhu

US$ 1,500 per ---- US$ 1,500 per month public tourist hotel & Marine in the camping) is concession fee a Park any of capture Image type, i.e. still photograph, motion picture y photograph video conventional commercial imaging, for Marine in any purposes, Park US$ 1,00 shall pay A portion of net revenue from the among shared Councils MPRU, District Communi Local and in period o period d ays

Hassan for being sworn in to be the Sixth

F. G. President of the United Republic of

Tanzania and the first female Commander- E.

in-Chief in the history of our country. (ii) 1, 200 per month. Rese camping) in the Marine restaurants & public services (e.g. (i)

Within the short period of Her leadership, Permission to operate to Permission P rves e she has demonstrated clearly that she is rmission - attentive, courageous, hardworking, ethical ------Night and a good listener with a solid vision that to operate U

will facilitate greater achievement in the SS development of our country. Further, I INVESTMENT OF TOURISM CATEGORIES 25,000 A B (ii) Marine(US$) Parks 40,000 A B categories. rates for prescribedminimum Note: The amount annually camping servic (i) (ii)

Permission to operate to Permission public Concession fee in for investment A s houses/ D =Guesthouses/Rest sports facilities water other dive centers and C = B hotels/lodges would also like to congratulate Her tay/Gift shops/Restaurants (i) Marine(US$) Reserves es e.g. restauranes e.g. = Three = rating above Four star and 1 0,000 3, 000 1,0 00 20,000 10,000 2,500

Excellency Samia Suluhu Hassan who was ; of different categories

Two

Hostels CATEGORY

unanimously elected by the CCM Special C - - C star star

rating rating

General Assembly to be the Chairperson of indicated are

rating hotels and rating hotels ts & night & night ts D the Chama cha Mapinduzi by all 1,862 a D nd Home

members. Given her 20 years vast

CONCESSION

experience in serving the Party, the CCM 5 members and Tanzanians in general, have great confidence in her, on leading the cond mod and business feasibility study per the island of the lucrative nature investment and the type of on Fees al al u cted differ

Party basing on the principles of the CCM .

constitution. Congratulations!! I plead with based all Tanzanians to pray for Her Excellency to as continue to grant her health and wisdom in the execution of her responsibilities in line with the slogan “KAZI IENDELEE”.

7. Honourable Speaker, this speech (i)

presents the first Budget of the Sixth Phase RECOMMENDED Government under the leadership of Her Excellency Samia Suluhu Hassan, President of the United Republic of

Tanzania. The Sixth Phase Government

D envisages to “Sustaining the foundations set forth by the previous Regimes, adopting the good practices and

COMMENDE developing the new ones”. Thus, the RECOMMENDED RECOMMENDED RE RECOMMENDED RECOMMENDED RECOMMENDED

Government budget estimates for 2021/22

(i) (v) (ii) (iii) RECOMMENDED (iv) (vi) (vii) have been guided by various documents

and guidelines including: The Third Five Year National Development Plan 2021/22 - 2025/26 which has been prepared in accordance with the National Development

. Vision 2025; CCM Election Manifesto 2020; East African Development Vision 2050; Africa Agenda 2063; Sustainable N MARINE RESERVES ONLY N MARINE Development Goals 2030; Development Operational and and Operational by requested as the Stakeholders

7 Cooperation Framework; and other regional nd

4 . oat oat 7 and international agreements that US$ - - - (21) a month. Tanzania has ratified. In addition, this

---- US$ 50 per US$ 50 per US$ 100 per US$ 100 per -

US$ 150 per US$ 150 per - tourist one US$ 100 per US$ 100 per - - with a carrying carrying with a Budget has considered the priority areas

Bottomed B - ame fishingame boats 00 per month00 per US$ 50 per US$ 50 per ----

$ 100 per highlighted by Her Excellency Samia US$ 1000 7 days per

. - twenty ----- U

- US$ 1

seven (7) to twenty (20) (7) (20) to twenty seven Suluhu Hassan, President of the United - - o f

. . Republic of Tanzania while addressing the ty i Fast ferrying boat ferrying Fast

Passenger boat boat Passenger ) Fishermen on g Fishermen a fishing permita of i nd

Passenger boat with a carrying boat with a Passenger carrying

Operating Glass Glass Operating Fast ferrying boat ferrying ) Fast

) i) Operating glass bottomed boat in glass bottomed) Operating boat April 2021. ew items ew Parliament on 22 ) Cruise ship ii ) Cruise ) iv vii passengers capac passengers above month Item New (i boat passenger the reserves for days (v each pay a fee (i capacity (ii ( month. (v days N ( 100 per month100 per in the marine park park marine in the month (x) LICENSED WITHI BOAT OPERATING

for for

US$ ----- game game .

8. ; may I refer to pay a Honourable Speaker -

month. some priority areas mentioned in the boats with a US$ 50

per

assengers assengers speech by Her Excellency the President of cense of cense p ermen on game ermen . -----

the United Republic of Tanzania that has Fish

Passenger

i) arks or visitingarks

ishing li been considered in this budget as follows: 50 for a periodfive50 for of days (5) (v ---- US$ 300 P shall fishing boats f a pay fishing each boats of fee period updays to 5 (i) of capacity carrying (7) seven

to maintain national values that is peace,

D. unity and solidarity which are the core

values of the development of our nation; C.

continue with the implementation plan to Business i Business boatowned by lodge (v of maximum 1000 per entry for p ( up ------( d of 5 entry maximum for chartered leisure (i of 5 maximum 100 per entry for (i age of 5 years (iii) Children below the Non i iii assenger boat ays v i ) ) ) improve business environment by reviewing )

)

privately owned and Free   Visitin Visiting commercial Visiting . Visitors staying at at staying Visitors -

s and commercial US$ Cruise ship/ 5days

policies, laws and various regulations in boat fishing ame Non Tanzanians

boat - g

200 per n the Marine n the

order to attract private sector investment . Tanzanians -

fishing in a fishing in leisure S$ 200 per per 200 S$ - 5

registered registered days days. and increase employment opportunities; to inclu

tourist -

entry entry F - . U ding US$

boat improve tax collection and administration ree S$ S$

BOAT AND SPORT FISHING LI AND FISHING BOAT SPORT s

systems so as to simplify tax payments and i visiting visiting (i owned (i following it the Deleting for and Replacing ( days d ays 100 per entry maxi for years (iv) 200 per (v - ( Business i Business fishi nclud iii ) US$ 1000 per i ) i v ) ) Visiting commercial) Visiting leisu Visitors Visitors Visiti Children below the age of 5 widening the tax base; and continue Cruiset ship Gam    ng in a boat owned by . .

ing chartered and R Non EAC Game fishing boats pay shall

strengthening parastatal operations to ng leisure boat privately 7 days esidents e fishing boats - n the marine pa

N s EAC Citizens Citizens taying at

operate profitably, pay dividends and on . 7 days - commercial ourist passe appropriate contribution to the - Free - US$ 200 per US$ - lodges and . Government. Free

m ------rks or um - Registered

Free - nger boat US$ US$ re of boat

9. ; other priority 7 Honourable Speaker CENSING ONLY MARINEWITHIN PARKS 3

areas include: Increasing productivity in 7

agricultural, livestock and fishery products the Stakeholders asrequested by Operational and through improving access to capital by small scale farmers and investors from the

financial institutions, including Tanzania .

Agricultural Development Bank and other of 7 days banks; improving irrigation, value addition and markets for agricultural produces;

promoting industrial investments of 7 days

(v) (iv) (iii) (ii) specifically those utilizing domestic raw (i)

(iv)

materials and labour intensive; continue

RECOMMENDED RECOMMENDED RECOMMENDED RECOMMENDED RECOMMENDED RECOMMENDED

curbing mineral trafficking and promoting construction of mining refining and processing industries in order to increase contribution of mining sector in the GDP;

improving transport, transportation and energy infrastructure, including roads, bridges, railways, marine, aviation, ports

expansion and electricity generation, RECOMMENDED RECOMMENDED RECOMMENDED

transmission and distribution; continue

(i) (iii) RECOMMENDED (iv) (ii) improving and enhancing provision of

social services especially health, education and water; and strengthening cooperation with other countries, regional and international organizations.

II. REVIEW OF 2020/21 BUDGET

. IMPLEMENTATION Different fees fees Different of on type based nationality Resident EAC, Non and in Tanzanians Marine Reserves

Revenue Performance

2 10. Honourable Speaker, in 2020/21, the

US$ 10 the

5,000

US$ 10 US$ 15 US$ 10 Government projected to collect 34.88 US$ 5

Free ------

- for it 10 trillion shillings from both internal and Free Tshs. 2,000 e of 16 years ofe 16 years

Tshs. 10,000 Tshs. - - - - tizens ing US$ US$ 5 Free

Ci external sources. As of April 2021, the - - US$ 5 Students - zens -

Citizens amount collected was 24.53 trillion person ag Citi Citizens Citizens EAC students EAC EAC Citizens EAC EAC EAC Citizens EAC EAC Citizens EAC

- -

dren below the age of 5 years of 5 the age below dren shillings, equivalent to 86.1 percent of the Non

Residents EAC EAC Non nts Reside Non EAC EAC Non nts Reside Residents Non Resident Students

              For each Chil target for the period under review. The Between the age of 5 years and and of 5 the years age Between

(iv) (i) (i) above and following and Replac Deleting (ii) - 15 years Additional item of new (iii)

breakdown is as follows:

- ee

ENTRANCE FEETHEENTRANCE IN FOR EACH PERSON MARINE PER DAY RESERVES

- (i) Revenue collected by Tanzania Tshs. Tshs. Tshs. Tshs. Fr

Revenue Authority (TRA) amounted to son -

Tanzanians - Tanzanians 14.54 trillion shillings equivalent to - anzanians

ren below the below ren Tanzanians T 10 een of 5 the age - -

Non Tanzanians Tanzanians 86.9 percent of the target; 5 years

- Tanzanian 2,000 .00 Non US$ Tanzanian 1,000 .00 Non US$ 5 Free   For each per Betw (ii) Non-tax revenue amounted to 1.80     ii) age of (iii) Child (i) of 15 the age above years ( 15 years and years

trillion shillings equivalent to 78.5

B. percent of the target;

(iii) Revenue from Local Government 1. A S/N

Authorities (LGAs) own sources was

years and 15 years (ii) the age o f (i)    

607.4 billion shillings equivalent to CURRENT (FEES) For each per each For Between th REGULATIONS US$ 10 Non Tshs. 1,00 US$ 20 Non Tshs. 2,00 Tanzanian 88.5 percent of the target; Tanzanian - - Tanzanians) Tanzanians) 15 years

(iv) Grants and concessional loans 0.00 0.00 e agee of 5 son above -

received was 1.89 trillion shillings - -

being 70.4 percent of the target; MARINE RESERVE AND PARKS

- - - ENTRANCE FEE FOR EACH PERSON PER DAY FOR EACH PERSON ENTRANCE IN FEE T

(v) Borrowings from domestic market (iii) Students Additional of a new item Additional years (ii) PROPOSED AMENDMENTPROPOSED (S)

including rollover for matured t Between   Non EA 2,000.00    10,000.00  5,000.00 (i) -

EAC EAC Reside nts EAC Reside nts Non EAC Government Securities, amounted to For each age of 16 person yearsabove and C Citizens C - Citizens Citizens

- students 3.99 trillion shillings equivalent to 95.7 EAC Citizens he age o age he

PROPOSE - -

percent of the target and; US$ 10 US$ 5 - - - f Tshs. - TShs. TShs. Tshs. (vi) External non-concessional loans 5 ye US$ 10

(3) - -

amounted to 1.68 trillion shillings ars

US$ 20 D AMMENDMENTS D

an S (USER FEES)S REGULATIONS, 2009.

equivalent to 88.1 percent of the target. d 15 1

Marine Parks Tanzanians and Non EAC, Reside nationality ie based on type of Different fees 11. Honourable Speaker, the target for AMENDMENT REASONS domestic revenue collection was not met in FOR S

in some sectors particularly in tourism, air n t travel and imports due to the effects of HE MARINE PARKS MARINE HE

TASK FORCE TASK COVID-19. In particular, revenue from COMMENTS Tanzania National Parks (TANAPA), Ngorongoro Conservation Area Authority

(NCAA) and Tanzania Wildlife Management

Authority (TAWA) have declined following RECOMMENDATIONS

(iii) RECOMMENDED (ii) (i) TASK FORCE TASK

slowdown of tourism activities as a result of R RECOMMENDED ECOMMENDED ANNEX COVID-19 effects to tourist source

countries. The COVID-19 pandemic ANNEX 6 adversely affected the contributions and II

dividend from some corporations and

the institutions.

in FEE item 12. Honourable Speaker, in improving PROPOSED 6 Tsh/Kg

each domestic revenue collection, the to Government has continued to: manage and monitor implementation of tax laws, regulations and procedures and improve apportioned ICT systems including Electronic Fiscal

amount Device Management System (EFDMS);

the improve the business and investment CURRENT FEE CURRENT environment as outlined in the Blueprint

indicating Action Plan; and closely monitor the performance of Government institutions without

0.2% of Cost and Freight (C&F) as per Tanzania 0.2% ofFreightper Tanzania as and Cost (C&F) value (TRA) assessed Authority Revenue and promote local tourism.

consignment 13. Honourable Speaker, grants and concessional loans received up to April whole REVIEWED INSPECTION FEE the

TANZANIA BUREAU OF STANDARDS OFSTANDARDS BUREAU TANZANIA 2021 were 1.89 trillion shillings which was

for higher by 3.84 percent compared to 1.82 FEE DESCRIPTION trillion shillings in 2019/20. The Batch Batch certification fee charges performance was satisfactory despite the effects of COVID -19 throughout the period freight under review. The Government will

included continue to strengthen partnership with

fee Development Partners to facilitate access to

old grants and concessional loans. SERVICE DESCRIPTION Inspection ofInspection products except motorused vehicles JUSTIFICATION Batch certification fee tocosts cover intended is for inspections. market surveillance The packing toseparatethe regulated list items from the un-regulatedones. of the weight on chargedthe consignmentfee be ratherThe based the proposed than value. shall 1 2 3 1 S/N

14. Honourable Speaker, regarding 3 2 1 external non-concessional loans, the These materials, operations, maintanancepuchasing testing coversand calibration equipment for costs fees These of These standards and technologicalstandards advancement safety and quality of food and cosmetic products and cosmetic food and quality of safety Justifications Government has finalized negotiations with are some international financial institutions in testing order to ensure that the planned borrowing the fees fees is attained. Further, the Government will for are

continue to create public awareness to new requested

increase their participation in the domestic parameters financial market. in

order in

Expenditure Performance which to

15. Honourable Speaker, in 2020/21, the strengthern the

Government planned to spend 34.88 trillion Bureau shillings, of which 22.10 trillion shillings service was recurrent expenditure and 12.78 has trillion shillings was development developed delivery expenditure. From July 2020 to April 2021, test

total release amounted to 24.74 trillion in line shillings, equivalent to 86.8 percent of capability estimates for the period. Out of that, 17.42 with the trillion shillings was recurrent expenditure, due new which included wages and salaries 6.09 to development trillion shillings, other charges 4.49 trillion mandated shillings and debt service 6.84 trillion functions

shillings. of

new products,

16. Honourable Speaker, as of April 2021, in total development expenditure was 7.32 regulating trillion shillings, equivalent to 74.1 percent new of estimates. Out of the amount, 6.24

trillion shillings equivalent to 79.7 percent of the estimates was from domestic sources and 1.08 trillion shillings equivalent to 52.8 percent of the estimates was from external sources.

PROPOSED FEE

(TANZANIA SHILLINGS) (TANZANIA 17. Honourable Speaker, in executing the 30,000/= 250,000/= 20,000/= 50,000/= 50,000/= 45,000/= 165,000/= 50,000/= 50,000/= 30,000/= 50,000/= 40,000/= 20,000/= 30,000/= 20,000/= 40,000/= 40,000/= 50,000/= budget from July 2020 to April 2021, the Government released funds to finance priority areas as follows: (i) Servicing of the Government debt 6.84 trillion shillings;

) in leather products and leather products and ) in (ii) Payment of wages and salaries to 3 O 2 public servants 6.09 trillion shillings; (iii) Power generation, transmission and distribution projects including the Julius Nyerere Hydro Power Project and Rural Electrification Projects 1.02 trillion shillings;

TANZANIA BUREAU OF STANDARDS OFSTANDARDS BUREAU TANZANIA (iv) Construction and rehabilitation of railways, including the Standard Gauge LABORATORY NEW PROPOSED FEES TESTING LABORATORY Railway 1.49 trillion shillings; PARAMETER PER SAMPLE PER PARAMETER Testing of Density and moisture Testing content of and per point of pavement Density Testing ofair Filter differential and restriction and oil pressure in air Filter and Testingtemperatureoil in of Elevated air Filter Testing and ofoil Efficiency in Full-Life Incremental fractional and Testing Efficiency of Capacity Dust-holding air and Filter oil in Testing ofthinner in Spot Testing of Water rate Transmission (WVTR) Vapour food on packaging material Testing (OTR) Rate ofTransmission food on packaging Oxygen material Testing ofhardness sole Testing (Cr ofchromicoxide chromium as Testing of seaming strengthfabric stitched in Testing of button attachment strength coated (PVC) Chloride Vinyl Testing of Poly in resistance puncture fabric Testing ofpressure ball product Testingleather and oftextile moisture content in Testing ofof flag specifications colour per Pantone National as (PMS) System Matching producing bacteria Testing of sulphide Hydrogen Testing ofmesenteroides Leuconostoc materials (v) Construction of roads, bridges and airport projects 1.15 trillion shillings; (vi) Payment of verified arrears for public servants, suppliers, contractors and consultants 965.1 billion shillings; (vii) Higher education students’ loans, fee NAME OF LABORATORY NAME MECHANICAL PACKAGING FOOD BUILDING AND BUILDING AND CONSTRUCTION CHEMISTRY TEXTILE LEATHER AND free basic education, strengthening of 2 4 1 3 5 6

S/N Vocational Education and Training

Authority (VETA) operations; youth 5 4 3 2 1

skills development and construction of SADCAS. as proposedwill fees The cover the cost for membership ininternationalfees organization BIPM such and for accreditation bodies such measurement for all testing laboratories inthe country. proposedwill fees The cover the costAccreditation of metrology of laboratory which is vital for accuracy and efficiency of Africa, Sweden and Germany. standards. For that purpose the proposedwill fees to help coverTBS costacquiring of traceability fromother countries South as such MetrologyTBS laboratory traceability seeks fromother countries to meet reliability and accreditation requirements per as international of-art equipement and building capacity (training personnel). of traceability (point reference) of all of calibration services inthe country, the proposedwill fees cover the costpurchasing of the state- a National as TBS Metrology Institute (NMI), is the custodian National of measurement standards which plays role providingof maintenance, transport and capacity building for Metrologists. TanzaniaBureau Standards of (TBS) is proposing new on calibration fees services inorder to cover operational, equipment AC/DC ELECTRICAL schools’ infrastructure 406.6 billion shillings; (viii) Construction and rehabilitation of

health facilities, procurement of drugs, Energy meter Measurements DMM Current medical equipment and reagents 265.8 billion shillings; and (ix) Rural and urban water projects 207.5 billion shillings.

Debt Sustainability Analysis Range 4 1/2 Digit Range 5 1/2 Digit Range 6 1/2 Digit Single phase Single 18. Honourable Speaker, Debt phase Three Sustainability Analysis (DSA) was Justifications conducted in November 2020 in accordance with the Government Loans, Guarantees 250,000.00 150,000.00 150,000.00 150,000.00 150,000.00 and Grants Act, CAP 134. The analysis revealed that, all debt burden indicators are within sustainability thresholds during short, medium and long term. According to

the analysis, the present value of public 323 194 194 194 194 debt to GDP is 27.9 percent compared to the threshold of 70 percent, the present

value of external debt to GDP is 17.3 388 259 259 259 259 percent compared to the threshold of 55 percent and the present value of external debt to export is 113.2 percent compared to 300,000.00 200,000.00 200,000.00 200,000.00 200,000.00 the threshold of 240 percent.

19. Honourable Speaker, on liquidity indicators, the analysis shows that the ratio of the external debt service to 72,000.00 90,000.00 250,000.00 100,000.00 120,000.00 100,000.00 100,000.00 100,000.00 100,000.00 117,000.00 117,000.00 135,000.00 135,000.00 200,000.00 200,000.00 250,000.00 220,000.00 170,000.00 150,000.00 200,000.00 150,000.00 150,000.00 150,000.00 230,000.00 180,000.00 100,000.00 250,000.00 300,000.00 200,000.00 150,000.00 domestic revenue is 13.7 percent compared

40,000.00 40,000.00 45,000.00 to a threshold of 23 percent; and the debt service to exports was 14.0 percent 52 58 323 129 155 129 129 129 129 103 129 168 168 194 194 259 259 323 285 220 194 259 194 194 194 298 233 129 323 388 259 194 compared to a threshold of 21 percent. Based on the above debt indicators, Tanzania has the capacity to continue 52 58 91 259 123 129 110 110 110 110 103 129 149 162 175 149 213 278 233 194 129 194 129 129 129 233 194 103 259 323 194 129 borrowing both domestically and externally to finance its development projects and timely service maturing debt obligation.

Financial Sector Development 95,000.00 95,000.00 85,000.00 85,000.00 40,000.00 45,000.00 85,000.00 85,000.00 70,000.00 80,000.00 80,000.00 100,000.00 100,000.00 100,000.00 115,000.00 125,000.00 135,000.00 200,000.00 115,000.00 165,000.00 215,000.00 180,000.00 150,000.00 100,000.00 150,000.00 100,000.00 100,000.00 100,000.00 180,000.00 150,000.00 200,000.00 250,000.00 150,000.00 100,000.00 20. Honourable Speaker, for the year ending April 2021, the overall lending rate decreased to 16.58 percent from an average (0-4) bar (0-4) (0-40)bar (0-20)bar of 16.91 percent in April 2020. The lending (0-10) mm (0-150) mm (0-150) mm (0-500) (21-100)bar (41-100)bar (101-400)bar Above 10 mm Above (401-1000)bar (1001-4000) bar (1001-4000) 61/2Digit Range Range 5 1/2 Digit 5 1/2 Range Digit 4 1/2 Range Digit 3 1/2 Range rate for loans with the one-year maturity (Above 100)bar (Above decreased to an average of 16.05 percent from 16.37 percent in April 2020. However, average deposit rate increased to 6.95 percent from 6.69 percent in April 2020. Likewise, rates for one-year deposit Vernier Calipers Vernier Indicators/gauges Dial gauges Height of Gauge Blocks Set Penetrometer gauge GO-NO-GO Gauge Pressure Sphygmomanometer pressure Differential Pressure transmitter & switch WeightDead balance Tester/Pressure Valves Safety Pressure Potentiometer Ohmmeter Resistor Ammeter meter Resistance Voltmeter cell Standard Box Decade resistance Megger staff Levelling and Voltage DMM Resistance Measurements (PSV) increased to 8.77 percent compared to 8.01 percent for the similar period in 2020. The developments have translated into a decrease in the annual interest rate spread

DIMENSIONAL to 7.28 percent from 8.36 percent in April PRESSURE ELECTRICAL AC/DC 9 8

10 2020. The Government will continue to

strengthen the banking sector with the view 8 7 6

to facilitate access to credit at reasonable SMALL VOLUME DIMENSIONAL FREQUENCY rates. TIME AND

21. Honourable Speaker, banking sector Gauge Screw Micrometer Marking Stick Dip Ruler Depth /thickness gauge Height gauge tape Dip Tachometer Shaker AngelesLos Rotator Mixer Vortex/ Centrifuge Stomacher 5 points measurements 5 points measurements 5 points measurements 5 points measurements 5 points measurements TANKERS ROAD SIMTANK SYRUP TANKS continued to remain stable with the ratio of MarkingTank Measuring Tape TANKS STORAGE BULK liquid assets to demand liabilities of 29.63 percent in March 2021 which is above the minimum regulatory requirement of 20 percent. The ratio of Non-Performing Loans (NPLs) to gross loans decreased to 9.36

percent in March 2021 from 10.50 percent (Each @ at a cost) (180min-24Hrs) (6000-45000)L (0-6000) mm (0-2000) mm Above 1 day (0-4000)mm (61-180)min Above 30 m (1 to 60)min Time / RPM Time / RPM Time / RPM Time Time /RPM Time /RPM Time /RPM Time RPM Time/ (0-5000)M (0-50) mm (0-50) (0-2000)1 (0-1000)1 (0-20)M3 (0-15)M3 (0-10)M3 (0-30)m (0-5)M in March 2020. Further, credit to private (1-60)s sector grew by 4.8 percent in April 2021. The growth of credit to private sector is 3 consistent with the monetary policy stance 12,000,000.00 2,000,000.00 1,000,000.00 300,000.00 230,000.00 150,000.00 180,000.00 100,000.00 100,000.00 100,000.00 110,000.00 160,000.00 110,000.00 120,000.00 110,000.00 110,000.00 110,000.00 110,000.00 110,000.00 110,000.00 190,000.00 130,000.00 120,000.00 100,000.00 450,000.00 250,000.00 160,000.00 800,000.00 750,000.00 500,000.00 90,000.00 which aims at increasing liquidity in the

economy and implementing the 85,000.00 Government plan to improve the business environment. 15524 2587 1294 1035 110 388 298 194 233 129 129 129 142 207 142 155 142 142 142 142 142 142 246 168 155 129 116 582 323 207 970 647 0 Effects of COVID-19 15,524 2,587 1,294 1,035 129 388 298 194 233 129 129 129 259 259 142 140 128 142 142 142 142 142 246 168 155 129 116 582 323 207 970 22. Honourable Speaker, in an effort to 647 mitigate the effects of COVID - 19, the 0 President of the United Republic of 200,000.00 200,000.00 110,000.00 12,000,000.00

Tanzania, Her Excellency Samia Suluhu 2,000,000.00 1,000,000.00 300,000.00 230,000.00 150,000.00 180,000.00 100,000.00 100,000.00 100,000.00 108,000.00 110,000.00 171,000.00 117,000.00 108,000.00 450,000.00 250,000.00 160,000.00 800,000.00 750,000.00 500,000.00 100,000.00 Hassan formed a Special Committee of 99,000.00 99,000.00 99,000.00 99,000.00 99,000.00 90,000.00 81,000.00 Experts to analyse impacts of the pandemic and recommend measures. The Committee

submitted the report on 17th May 2021 whereby, among other things, the report revealed that, Tanzania like other 45,000.00 54,000.00 27,000.00 27,000.00 27,000.00 90,000.00 117,000.00 180,000.00 540,000.00 720,000.00 900,000.00 720,000.00 900,000.00 108,000.00 108,000.00 108,000.00 108,000.00 108,000.00

1,080,000.00 countries, has been economically and 45,000.00 45,000.00 54,000.00 36,000.00 27,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00

36,000.00 36,000.00 socially affected by COVID – 19, whereas health, tourism, trade, transportation, arts 0 52 65 78 52 39 52 52 52 52 52 65 78 39 39 39

259 129 776 155 155 155 155 155 168 and entertainment were the most affected 1,035 1,294 1,035 1,294 1,552 sectors. The pandemic has adversely affected service receipts, foreign reserves 0 0 0 0 0 0 0 52 65 78 52 39 52 52 52 52 52 52 78 39 39 39 213 110 116 116 116 116 129 155 and economic growth. The Government will continue to take appropriate measures to revive economic activities.

120,000.00 23. Honourable Speaker, on 3rd May 2021, ------85,000.00 85,000.00 90,000.00 90,000.00 90,000.00 90,000.00 40,000.00 50,000.00 60,000.00 40,000.00 30,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 60,000.00 30,000.00 30,000.00 30,000.00 165,000.00 165,000.00 100,000.00 the President of the United Republic of Tanzania, Her Excellency Samia Suluhu Hassan held a virtual meeting with Ms. (0-50)ml (1-10)ml (0-1000) Kristalina Georgieva - Managing Director, (0-1000)ml (50-100)ml (11-100)ml (0-2000)ml (0-1000)ml (0-1000)ml (0-1000) µl (0-1000) (51-1000) mI (51-1000) (1001-2000)ml Above 2000 ml Above Above 1000 µl Above

(1001 to 2000) ml 2000) to (1001 International Monetary Fund (IMF) to discuss economic and social cooperation including support in addressing the effects of COVID – 19. As a follow up, the Ministry of Finance and Planning has initiated Single point calibration Three points 3 points than More Single point calibration Three points 3 points than More negotiations with the IMF to secure a

TEMP. CONTROLERSTEMP. Thermographs Refregirators) bath, Liquid WITH Oven, CALIBRATION (Incubators, MAPPING CALIBARTION WITH (Autoclave) MAPPING Refractometer Meter pH Analyzers Moisture Hydrometer meter Density Measure Capacity Pycnometer TOT Volumetric Flask Burettes Cylinder Measuring Pipettes - Multichannel micropipette Conical/Flask Beaker Syringes concessional loan worth USD 571 million under Rapid Credit Facility (RCF). The purpose of the loan is to mitigate the

VOLUME economic and social effects of the TEMPERATURE SMALL VOLUME SMALL

CHEMICAL AND CHEMICAL OTHERS pandemic. The Government intends to 4 5 3 6 direct the funds towards bolstering official

foreign reserves, improve expenditure in 3

health and water sectors as well as TEMPERATURE boosting tourism services in both Mainland Tanzania and Zanzibar.

Cold /Chill rooms Cold freezers Blast freezersPlate ROOMSCOLD Humidity Chambers 3 points calibration) PLATES(MoreHOT than calibration) maximum points 3 points PLATES(Multiple HOT calibration) point PLATES(Single HOT calibration) points Incubators(More than 3 calibration) maximum points 3 Incubators(Multiple points calibration) point (Single Incubators MUFFLE FURNANCES calibration) points Ovens (More than 3 maximum) calibration, 3 points (Multiple-points Ovens calibration) point (Single Ovens Fridges/Freezers calibration) points Autoclave (More than 3 calibration) maximum points 3 (Multiple Autoclave points III. FISCAL POLICY FOR 2021/22

Macroeconomic Policy Targets 24. Honourable Speaker, Government revenue and expenditure estimates for 2021/22 have been prepared based on macroeconomic assumptions and targets as follows: (i) Real GDP growth of 5.6 percent in 2021 and 6.2 percent by 2023; (ii) Containing inflation at a single digit 165,000.00 165,000.00 165,000.00 165,000.00 165,000.00 100,000.00 100,000.00 100,000.00 130,000.00 130,000.00 130,000.00 150,000.00 120,000.00 120,000.00 120,000.00 110,000.00 215,000.00 215,000.00 between 3.0 to 5.0 percent in 2021/22; (iii) Domestic revenue (including LGAs revenue) is projected at 15.9 percent of GDP in 2021/22; 213 213 213 213 213 194 142 129 129 129 168 168 168 155 155 155 278 278 (iv) Tax revenue is estimated at 13.5 percent of GDP in 2021/22 from the 259 259 259 259 259 259 168 likely outturn of 12.9 percent in 259 259 194 323 259 194 323 259 194 388 323 2020/21; (v) Ensuring budget deficit (including grants) does not exceed 3.0 percent of 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00 117,000.00 the GDP in line with the agreed East 180,000.00 180,000.00 135,000.00 225,000.00 145,800.00 162,000.00 225,000.00 180,000.00 135,000.00 270,000.00 225,000.00 African Community macroeconomic convergence criteria;

(vi) Maintaining foreign reserves sufficient to cover at least four months of imports of goods and services; and 30,000.00 90,000.00 20,000.00 90,000.00 99,000.00 90,000.00 99,000.00 90,000.00 90,000.00 108,000.00 180,000.00 225,000.00 180,000.00 600,000.00 160,000.00 250,000.00 350,000.00 600,000.00 180,000.00 100,000.00 117,000.00 108,000.00 108,000.00 315,000.00 135,000.00 135,000.00

1,200,000.00 (vii) Ensure that social wellbeing indicators

1,200,000.00 1,200,000.00 are strengthened.

39 26 155 259 129 323 259 776 207 323 453 776 233 129 129 142 129 142 168 129 129 155 155 453 194 194 Policy and Strategies to Increase 1,552 1,552 Revenue 25. Honourable Speaker, in 2021/22, the 26 39 142 207 110 906 517 142 259 336 517 194 116 110 123 110 123 142 110 110 142 142 336 155 123 226 226

1009 Government will continue to prioritize domestic revenue collection. Key areas for consideration include strengthening and administering domestic revenue through 175,000.00 implementation of the following measures: 20,000.00 20,000.00 30,000.00 90,000.00 85,000.00 95,000.00 85,000.00 95,000.00 85,000.00 85,000.00 95,000.00 85,000.00 85,000.00 700,000.00 700,000.00 400,000.00 110,000.00 780,000.00 200,000.00 260,000.00 400,000.00 150,000.00 110,000.00 110,000.00 110,000.00 110,000.00 260,000.00 120,000.00 160,000.00 (i) Continuing to improve the business environment for tax payers with a view to attracting investment including points above

(0-200)'C nurturing small and medium (201-600)t (-30-200)'C (-30-200)'C (-30-200)'C (-30-600)'C (-30-200)'C (200-600)'C (200-600)'C (-30-1200)'C (2000-5000)g From kg 10 and From More than three three than More businesses in order to widen tax base; (ii) Continuing to implement the plan to improve the business and investment environment by harmonizing, abolishing or reducing tax rates, levies and nuisance fees; Tensile Machine machineMarshall Torque meter Tension meter Thermometers i).Liquid-in-Glass Thermometer Digital Thermometersii). and of probe System a). readout probes/RTDs) Pt.100 ( Thermocouple probes b) thermometer digital Pen-type c) Temp.iii).Dial Gauges Thermographs iv). block Dry Water bath Single-pointi). calibration calibrationMultiple-point ( 3 point maximum) 3 points than More calibration Autoclave (Single point) Temperature Set of WeightsSet (Mass Pieces) Compression Machine CBR (proving) ring Torque Wrench Load Cell Hammer Rebound (iii) Strengthening domestic revenue collection and administration including from Local Government Authorities by

FORCE emphasizing the proper use of ICT TEMPERATURE

MASS systems; 2 3 1

(iv) Continuing to improve the S/N

Government's electronic Payment 1 MASS Gateway (GePG) and ensure that all MEASUREMENT FIELD OF Government institutions use the system; (v) Strengthening monitoring systems in Air Craft Weighing Scale Weighing Air Craft Bridge Weigh Balance Weighing institutions and Public Entities to Pieces) (Mass Set Weights of Crane Mobile Weighing balance Spring Plant Batch Mechanical balance Balance Electronic Analytical Balance Analytical Balance balance Micro Balance or dual INSTRUMENTS OR EQUIPMENT,

ensure that dividends and MACHINES TYPE OF contributions are timely submitted;

(vi) Strengthening the administration of tax METROLOGY LABORATORY laws to address the challenges of tax TANZANIA BUREAU STANDARDS OF Tone toAbove 40 5 Tone (500-5000)kg

evasion and minimize revenue (3781kg Red pad) CAPACITY OR Above 50 Tone 1 mg to 1000 g ( Yellow pad) ( Green pad) MEASURING (2100-6000)g (500-2000)kg (201-2000)g (251-500)kg (151-250)kg Up to 200 g (0-20)Tone (51-150)kg (10-50)kg (0-20) kg (0-20) (0-200)g

leakages; RANGE 2039kg 4143kg

(vii) Transferring the role of marking petrol - from a private contractor to the

Tanzania Bureau of Standards (TBS) to CALIBRATION FEES 1,500,000.00 1,700,000.00 1,200,000.00 1,000,000.00 200,000.00 950,000.00 250,000.00 150,000.00 110,000.00 25,000.00 90,000.00 80,000.00 70,000.00 70,000.00 75,000.00 PRICE(TZS) verify the quality of imported fuel and CURRENT 200,000.00 200,000.00

control tax evasion due to fuel 120,000 80,000 adulteration; and PRICE(USD (viii) Prioritize implementation of strategies CURRENT 1552 1940 1229 2199 1294 259 259 259 116 323 194 142 103 103 155 32 91 91 97 0 0 and projects to increase revenue ) generation. PROPOSED PROPOSED CALIBRATI CHARGES (USD) 2,846 1,682 2,846 1,811 2,070 453 453 453 129 453 285 194 129 129 129 129 129 195 ON ON 32 26. Honourable Speaker, notwithstanding 0 0

the measures taken to strengthen domestic CHARGES (TZS) CALIBRATION PROPOSED PROPOSED 1,600,000.00 revenue collection, the Government will 2,200,000.00 1,300,000.00 2,200,000.00 1,400,000.00 350,000.00 135,000.00 350,000.00 350,000.00 100,000.00 350,000.00 220,000.00 135,000.00 step up public awareness campaigns to 25,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 promote participation in domestic financial market and trade Government Securities in the Dar es Salaam Stock Exchange.

Moreover, the Government will continue to implement the Development Cooperation Framework (DCF) to facilitate access to 440,000 grants and concessional loans and borrowing from Export Credit Agencies (ECAs) which offer relatively reasonable

PROPOSED FEE IN terms. TANZANIA SHILLINGS TANZANIA

Expenditure Policies 27. Honourable Speaker, expenditure policies in 2021/22 will include the following: 100 (i) To allocate funds to priority areas that stimulate economic growth and accord priority to ongoing projects prior to CURRENT FEE IN US DOLLAR FEE INCURRENT US DOLLAR committing new ones; (ii) To ensure that budget deficit does not exceed 3.0 percent of the GDP in line with the East African Community

TANZANIA BUREAU OF STANDARDS OFSTANDARDS BUREAU TANZANIA macroeconomic convergence criteria;

COSMETIC FEES PRODUCTS REGISTRATION (iii) To control creation and accumulation of arrears; (iv) To maintain discipline in public expenditure; and TYPE OFTYPE PRODUCT (v) To enhance use of ICT in Government business in order to increase efficiency as well as building capacity to local experts on systems security; Justification toaccommodate The testingto feeincreased be costs proposed is Registration of Cosmetics 1 S/N

28. Honourable Speaker, in strengthening management of public funds in public 2 Business Environment are proposed be reduced to comply fees to Most testing the withof Government Blueprint Improve To For Regulatory Reform Food institutions which collect fees, the Government has introduced new modalities to administer revenue and expenditure for Tanzania Ports Authority (TPA), Tanzania Justifications spp Streptococcus Sulfite reducinganaerobes Clostridium spp Enterobacteriaceae Shigella Pseudomonas aeruginosa Bacillus spp Listeria spp Staphylococcus aureus Coliforms Escherichia coli Salmonella spp andYeast Moulds Communication Regulatory Authority plateTotal count Food colours Preservatives (each) Sweeteners residuesDrug Pesticide residues Heavy metals (each) Vitamins (each) Purity Cocoa butter cocoa solidsFat free cocoa solids Total (TCRA) and Tanzania Shipping Agency Corporation (TASAC). In that regard, (each) starting from 2021/22, the respective (each) (each) (each)

institutions will continue to collect revenue (each) through GePG and deposit in the holding account maintained at the Bank of Tanzania. Expenditure of the respective institutions will base on the approved budget and funds will be released from the holding account after Paymaster General’s approval. Further, the Government will monitor expenditure of the respective institutions on quarterly basis.

29. Honourable Speaker, the Government intends to improve funding arrangement for 125 TANAPA, NCAA and TAWA to increase 125 165 130 155 125 165 150 150 125 130 155 160 130 135 120 65 65 65 55 65 50 35 15 15

efficiency in the discharge of their 40,000/= 40,000/= 40,000/= 30,000/= 40,000/= 40,000/= 40,000/= 40,000/= 40,000/= 30,000/= 40,000/= 40,000/= 30,000/= 30,000/= 50,000/= 50,000/= 50,000/= 150,000/= 300,000 35,000/= 50,000/= 30,000/= 35,000/= 20,000/= 20,000/= responsibilities. In pursuit of this goal, the

Government will release funds for other /= charges in advance for two months at the beginning of the financial year and thereafter, continue to provide monthly

advances. This will provide buffer for these institutions to meet the needs of the subsequent month throughout the year.

Priority Areas for the Year 2021/22 50,000/= 50,000/= 30,000/= 15,000/= 20,000/= 30,000/= 30,000/= 30,000/= 30,000/= 20,000/= 20,000/= 20,000/= 45,000/= 30,000/= 30,000/= 30,000/= 30,000/= 50,000/= 30,000/= 20,000/= 20,000/= 20,000/= 30,000/= 50,000/= 20,000/= 30,000/= 30,000/= 50,000/= 30,000/= 20,000/= 30,000/= 30. Honourable Speaker, the budget for 50 45 25 10 20 25 25 50 25 15 10 30 60 65 50 25 50 65 40 10 55 30 25 25 25 35 25 50 30 55 50 2021/22 is the first in the implementation of the Third Five Year National Development Plan (2021/22 - 2025/26) with the theme of “Realising Competitiveness and Industrialisation for Human Development”. The budget has taken into account five (5) priority areas articulated in the Annual Development Plan for 2021/22, which includes: realizing an inclusive and competitive economy; deepening industrialization and service provision for value-addition of agricultural products; investment and trade promotion; human development; and skills development.

31. Honourable Speaker, in realising

Ethyl alcohol (Ethanol) content (Ethanol) alcohol Ethyl pH dioxide Carbon Polarisation Water matter insoluble ash Sulphated Acidity solids) (Total soluble Brix gravity Specific Total carbohydrates Milk fat acid Ascorbic Water ash soluble Alkalinity Sugar content Caffeine ash of soluble water Alkalinity Density acid Sorbic Total solids acidity Volatile Aldehydes and Spirits) (for Beverages Methanol Alcoholic Total acidity (as NaCl) Chloride (FFA) Free Fatty acids Spirits) and beverages (for alcohols Higher Alcoholic furfural (HMF) Hydroxymethyl matter Dry content Total Meat dioxide Sulphur inclusive and competitive economy, the Government will focus on financing projects that will: build a vibrant society capable of competing both regionally and globally; promote macroeconomic stability; improve Food

2 business and investment environment; promote innovation and transfer of

TANZANIA BUREAU OF STANDARDS LABORATORY REVIEWED TESTING FEES CURRENT TFDA NAME OF PROPOSED FEE S/N PARAMETER PRICE (IN US LABORATORY (TZS) DOLLARS ) Testing of Hydroquinone in cosmetics products 435 150,000/= 1 CHEMISTRY Testing of Kojic acid cosmetics products 435 150,000/= Moisture content 30 30,000/= Crude fibre 55 30,000/= Acid insoluble ash 55 30,000/= Protein 55 60,000/= Folic acid 65 50,000/= Iodine value 60 30,000/= Total ash 45 30,000/= Volatile oils 55 30,000/= Mycotoxins (each) 120 150,000/= Total Aflatoxins (μg/kg) 225 150,000/= Salts (%w/w) 35 30,000/= Chromate test 25 30,000/= physical tests (each) 5 10,000/= Slip point (Melting point) 25 30,000/= Acid value 50 30,000/= Unsaponifiable matter 50 30,000/= Peroxide value 50 30,000/= Insoluble impurities 25 30,000/= Soap content 20 30,000/= Relative density 10 20,000/= Refractive index 10 20,000/= Saponification value 50 30,000/= Colour in ICUMSA 30 20,000/=

– in for air as; ate

358 iron total total

ports, are ATCL; ATCL; – roject; roject; ridge bridge Hoima Hoima – A

and p lyovers flyovers flagship flagship - ICT and

. 2 Food plant construction water urban

); other shillings improve m Mtwara to from Mtwara Busisi

, mining with neighbouring transform transform

way infrastructure way has been allocated, ; – and sea fishing vessels fishing vessels -sea ; rail ridge (Dar es Salaam) es Salaam) (Dar bridge congest congest bridges and national carrier national deep de lop 23 oal and Liganga coal and nickel lyover (Dar es Salaam); esflyover Salaam); (Dar construct and rehabilitconstruct Tanzania

3.13 trillion shillings

the roads, bridges, roads, – crude from oil pipeline Natural Gas (LNG)

, deve Kigongo

and ;

including construction of a including Rumakali Hydropower Project infrastructure rojects.

and energyinfrastructure rural rural

infrastructure Ruhudji Hydropower Project Ruhudji Hydropower Project that link Kamata and Liquefied Honourable Speaker of 7.44 trillion of 7.44 trillion out of which, roads technology; and services Lindi, 222 MW (Uganda) to Tanga (Tanzania of standard gauge railway line flagship p Mchuchuma projects and to Liganga Mbamba Bay with spurs Mchuchuma; MW

airports are: will beprojects implemented that strengthening digital improve countries construction of including (Mwanza), Tanzanite and rocurement of procurement transport 32.

Justifications The proposed fees cover charges for product evaluation, testing and market surveillance inspections for a duration of five 1 years. These fees are proposed to be reduced to comply with Government Blueprint For Regulatory Reform To Improve Business Environment These fees are proposed to be reduced because part of costs for market surveillance inspections have been addressed 2 in other intergrated systems within TBS Reduced fees are expected to increase number of registrants and products to be registered hence Bureau's income will 3 not be significantly affected

33. 34. markets. livestock and abattoirs ofmodern and construction livestock local andin livestock services; value additionextension tocrops, strengthening research centres and storageinfrastructure; and crop construction andrehabilitation ofirrigation products value willemphasis beon provision industrialization andservice Zones. Economic andExportProcessing professionals); and development ( human for industrializationand skills andspecialized development of rare ash project North Mkulazi; Eyasi construction of and efforts which util industries Honourable Speaker Honourable Speaker onstruction of construction

petroleum exploration projects to crops,livestock , fish . will bedirected on building artificial insemination services;

ize domestic ize Priority at Engaruka; for minerals value addition ternational markets; improve markets; ternational

artisans, technicians and, technicians artisans,

and fisher sugar processing plant at sugar processing Wembere and Mnazi Bay Wembere and 24

evelopment ofSpecial development fishing port fishing areas industries

, theGovernment mass trainingfor ies , raw materials.

in will products and fis (Mbegani deepening that include: include: ;

soda her

add for ); y ,

Further, the focus will be on financing S/N 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 projects and programmes which promote 9 8 7 6 5 4 3 2 1 Registration of processed cereal based foods for children processed cereal for based Registration of foods and followinfants Foodup formula for Registration of Vegetable and vegetable products of Registration tourism, financial and insurance services Confectionaries of Registration Food additives Registration of Food supplements Registration of and water Drink of Registration products Fruits and fruits Registration of Meat Registration of andproducts meat products Fish and fish of Registration Vinegar of Registration Spices and herbs of Registration Cocoa and cocoa products of Registration and coffee Tea of Registration and oilFats of Registration salt Iodated of Registration and honey Sugar of Registration alcoholic Registration of beverages Non-alcoholic Registration of beverages products and roots Tuber of Registration Nuts of Registration Pulses of Registration Cereal and Registration of cereal product Milk Registration of and product milk as well as development of pharmaceutical and medical equipment industries. A total of 1.38 trillion shillings has been allocated to finance these projects. PRODUCT TYPEOF

35. Honourable Speaker, another area is investment and trade promotion whereby FOOD PRODUCTS REGISTRATION PRODUCTS FOOD FEES the Government will finance programmes to TANZANIA BUREAU OF STANDARDS strengthen domestic markets and exploit regional and international markets opportunities. Targeted markets are those which will provide opportunities for

domestic produced goods, including crops, US CURRENT IN FEE livestock, forestry and fishery products. The DOLLAR 380 250 800 410 330 400 370 230 400 400 450 280 280 360 300 350 360 350 350 400 450 Government will continue to improve 850 900 330 business and investment environment by implementing the Blueprint Action Plan. A total of 31.6 billion shillings has been

allocated for these interventions. TANZANIA SHILLINGS PROPOSED FEE IN IN FEE PROPOSED

36. Honourable Speaker, under human

development, the Government will focus on ANNEX 5 1,000,000 1,000,000 ANNEX I 500,000 improving the provision of social services 550,000 500,000 800,000 600,000 500,000 600,000 600,000 500,000 600,000 600,000 600,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 600,000 600,000 such as education and training, health and social wellbeing, water and environment as well as social protection including the implementation of Productive Social Safety

Nets Program through Tanzania Social

Figure 4b Government Expenditure 2019/20 Action Fund (TASAF). Moreover, the Total Tshs. 34,879,793 Government will continue with land planning, surveying and issuing title deeds

Government Debt in urban and rural areas, manage and Repayment Development 25% develop water resources, and continue Expenditure Employer's Contr. 37% implementing environmental protection and To Pension Funds and Other climate change adaption programmes. A 5% total of 4.43 trillion shillings has been Other Charges Wages and Salaries 11% 22% allocated.

37. Honourable Speaker, in skills development, the Government will finance programmes that develop knowledge and

skills at all levels of education, including

enabling environment for self-employment among the youth. In addition, the Government will continue to improve the vocational trainings and impart rare skills to increase productivity and competitiveness to foster social-economic development. A total of 50.5 billion shillings has been allocated.

38. Honourable Speaker, Government priority areas to be implemented in 2021/22 are detailed in my speech on the Economic Survey 2020 and the National Development Plan 2021/22 presented earlier today. 137 26

Figure 3a: Source of Funds in 2020/21 Budget Domestic and Total Resources Tshs. 34,879,793 External Borrowing 39. Honourable Speaker, in addition to the (Including Rollover) flagship projects, the Government will 23% implement other projects for improvement of infrastructure through concessional loans from the World Bank. The projects include: Dar Es Salaam Metropolitan Development Project Phase II (DMDP II) for Grants and flood response in the Msimbazi River Basin Concessional Loans from Development at a cost of USD 120 million. The project Patners Domestic Revenue 8% will involve expansion and construction of (Including LGAs) 69% Msimbazi river-banks and a bridge at Jangwani area. The second project involves upgrading of roads to promote social and economic opportunities where the World Bank will provide USD 300 million and the Figure 4a: Government Expenditure, 2021/22 Government's contribution is USD 50 Total Tshs. 36,329,740 million. The project aims at improving rural roads in areas with high productivity of agricultural products. Government Debt Repayment Development 24% Expenditure 40. Honourable Speaker, the Government 37% Employer's Contr. To is also negotiating with the World Bank Pension Funds and Other through the International Development 5% Other Charges Association (IDA window) for infrastructure 12% Wages and Salaries improvement project in 45 towns and cities. 22% Implementation of the project will begin in the IDA 20 which is expected to start in July 2022 and will cost about USD 500 million. The project will involve

27 136

construction of infrastructure to improve the business and investment environment to enhance economic growth of the respective cities.

Other Priority Areas

Preparation of the 2022 Population and Housing Census 41. Honourable Speaker, The Government of the United Republic of Tanzania is planning to conduct the sixth Post- Independence Population and Housing Census in August 2022 in accordance with Figure 3a: Source of Funds in 2021/22 Budget Total Resources Tshs. 36,329,740 Domestic and Statistics Act CAP 351. As part of External Borrowing (Including Rollover) preparatory activities for the 2022 20% Population and Housing Census, National Bureau of Statistics (NBS) and Office of the Chief Government Statistician, Zanzibar (OCGS) have prepared the 2022 Census Management and Implementation Strategic

Grants and Handbook. The Handbook outlines the Concessional Loans from Development management and implementation of the Patners Domestic Revenue 8% entire Census project, budget, and the (Including LGAs) 72% structure of the Census organization at all administrative levels.

42. Honourable Speaker, a total of 328.2 billion shillings are expected to finance the 2022 Census whereby, the Government will

135 28 finance 70 percent of the total budget and 30 percent is expected to come from Development Partners including the UNFPA, FCDO-UK, JICA as well as technical assistance from the US Census Bureau. For the first time in the history of census undertaking in the country, the 2022 Census will be digital in all stages of its implementation starting from Census Geography and Enumeration. The use of this technology has significant benefits, especially in reducing the cost and time of collecting and processing data, which enables the release of Census results Figure 2: Composition of Domestic Revenue within a short period of time. 2020/21 - 2021/22 9000000 8000000

43. Honourable Speaker, since the 7000000 Population and Housing Census exercise is 6000000 the responsibility of all of us, I call upon all 5000000 4000000

Census Committees, Regional and District Milioni Shilingi 3000000

Commissioners, Honourable Members of 2000000

Parliament and the general public to 1000000

0 ensure that they provide adequate co- Customs Duty Excise Duty- Excise Duty- VAT- Imports VAT- Local Income Tax Other Taxes Non Tax LGAs own Imports Local Revenue source operation in the preparation of the Census 2020/21 2021/22 and prepare themselves to be counted in

August 2022. The aim is to ensure that people who sleep in the country in the census night are counted and information about their economic, social, environmental, housing and other details

29 134

Annex 4: National Debt and Its Trend are collected to facilitate planning for

NEW EXTERNAL AND DOMESTIC BORROWING (SHILLINGS MILLION) sustainable development.

2019/20 2020/21 2021/22 1. Total of New External and Domestic Borrowing (a+b) 8,851,548.5 9,864,927.3 9,159,086.9 Improving Employees’ Welfare (a) New Domestic Borrowing 4,959,992.2 4,904,247.6 4,989,132.9 (i) New Domestic Borrowing (Rollover) 3,460,218.0 3,316,078.4 3,150,336.7 44. Honourable Speaker, the Government (ii) Net Domestic Financing 1,499,774.2 1,588,169.2 1,838,796.2 recognizes the contribution of public and

(b) New External Borrowing 3,891,556.4 4,960,679.7 4,169,954.0 private sector employees in economic (i) Concessional Projects Borrowing 1,449,162.3 1,925,049.7 1,817,847.0 growth. In this regard, the Government will (ii) Concessional General Budget Support 125,990.5 - - (iii) Non - Concessional 2,316,403.6 3,035,630.0 2,352,106.9 take the following measures:

(c) Amortization of Domestic Debt 4,899,168.0 4,946,747.0 4,711,974.1 (i) To reduce minimum tax rate levied on (i) Principal - Rollover 3,460,218.0 3,316,078.4 3,150,336.7 employment income (PAYE) from 9 to 8 (ii) Interest Payments 1,438,950.0 1,630,668.6 1,561,637.4 percent. This measure is a continued (d) External Debt Services 2,963,410.0 3,703,194.5 4,166,445.8 effort by the Government to reduce tax (i) Interest 987,312.0 1,239,913.8 1,151,376.3 (ii) Principle 1,976,098.0 2,463,280.6 3,015,069.5 burden to employees whereby, the rate has been reduced from 11 percent in (e) Net Domestic Debt Increase (a-c(i) 1,499,774.2 1,588,169.2 1,838,796.2 2015/16 to 8 percent in 2021/22; (f) Net External Debt Increase (b-d(ii) /1 1,915,458.4 2,497,399.1 1,154,884.5 (ii) To abolish the 6 percent value retention

2. Net Increase on Domestic and External Debt (e+f) 3,415,232.5 4,085,568.3 2,993,680.7 fee on higher education loans; and /1 The increase does not include future disbursement from existing loans (iii) To allocate 449 billion shillings for Source: Ministry of Finance and Planning promotion of 92,619 employees.

Improving Benefits for Ward Councillors, Division Officers and Ward Executives 45. Honourable Speaker, Ward Councillors are doing a commendable job in overseeing development activities in their respective wards. It is unfortunate that in some councils they are not paid their statutory allowances on time, compelling the Councillors to depend on the discretion of

133 30

Source Projects Funds Baskets Support budget General the Executive Directors. This situation leads to moral hazards which may motivate Ministry Finance: of and Planning collusion between Councillors and Executive Directors in favour decisions that are not of public interest. Some Honourable Members of Parliament have expressed this issue with sentiment and I would like to Grand Total Grand Total Concessional Loans Grants Total Concessional Loans Grants Total Concessional Loans Grants inform the House that, Her Excellency,

Madam President has heard your voice and and- 2020/21 Grants 2016/17 Annex External Loans 3: directed the Minister for PO-RALG and myself to resolve the matter.

1,857,399 2016/17 2,474,159 1,182,461 Actual

674,938 273,975 168,984 342,785

46. Honourable Speaker, from 2021/22, I 104,991 152,482 190,303 propose the Central Government to start 132

paying monthly allowances to honourable 1,856,185 2017/18 2,294,720 1,220,481 Actual

635,704 191,847 117,166 246,688 246,688

Councillors directly to their personal bank 74,681

accounts in all Councils with low-revenue 0

1,822,839 2018/19 2,173,893 potentials. The 16 Councils with high 1,115,041 Actual

707,797 225,659 181,378 125,396 125,396 revenue (Grade A) will continue paying 44,281 allowances to Councillors through their 0

2,821,650 2019/20 3,560,201 2,340,232 Actual personal accounts using Councils’ own 481,419 347,118 181,091 391,433 166,027 126,094 265,338 sources.

2,460,506 2020/21 Budget 2,874,372 1,846,045

614,461 275,543 196,538 138,323 138,323

47. Honourable Speaker, the Division 79,005

Officers are key liaisons at ward and 0

1,744,783 2020/21 district levels where they do a 2,149,228 Likely 1,293,892 146,240 258,205 450,891 210,535 commendable job of overseeing the 77,622 68,618 47,670 implementation of Government directives in

Tshs Million 2,673,617 2021/22

Budget 2,955,923 1,758,111

their jurisdictions. The CCM Government, 915,506 282,306 222,570 acknowledges their importance, and hence 59,736 0 0 0

provided them with motorcycles to enable

them carry out their duties effectively. 0.5% 0.0% 1.6% 0.0% 0.1% 1.9% 1.1% 0.0% 1.4% 6.4% 5.3% 1.1% 7.4% 4.1% 0.7% 0.3% 2.2% 8.0% 6.2% 1.8% 21.7% 15.0% 21.7% 13.8% Budget 2021/22 However, most of them do not afford fuel and maintenance costs and are therefore

0.5% 0.2% 1.1% 0.1% 0.0% 2.1% 1.0% 1.5% 6.4% 5.5% 0.9% 7.2% 4.2% 0.8% 0.3% 1.9% 5.8% 4.5% 1.2% compelled to request assistance from -0.5% Likely 19.4% 13.4% 19.4% 13.6% 2020/21 citizens and other stakeholders. This situation greatly reduces efficiency in our 0.5% 0.1% 1.6% 0.1% 0.1% 2.1% 1.0% 0.0% 1.9% 6.6% 5.5% 1.2% 7.4% 4.2% 0.7% 0.3% 2.1% 8.1% 6.4% 1.7%

22.1% 14.7% 22.1% 14.0% Divisions. I would like to inform all Division Budget 2020/21 Officers that their voices have been heard by Her Excellency, President Samia Suluhu 0.5% 0.3% 2.0% 0.1% 0.1% 2.8% 0.3% 1.3% 6.9% 5.8% 1.1% 7.2% 4.1% 0.7% 0.3% 2.0% 6.5% 4.8% 1.7% -0.9% 20.6% 14.2% 20.6% 14.1% Actual

2019/20 Hassan. Therefore, I propose that from 2021/22, the Central Government should start paying a monthly allowance of 0.5% 0.1% 1.4% 0.0% 0.1% 2.8% 2.3% 0.3% 0.9% 6.9% 5.8% 1.1% 7.3% 4.3% 0.7% 0.3% 2.0% 6.4% 4.9% 1.5% 21.9% 13.5% 21.9% 15.5% Actual

2018/19 100,000 shillings for each Division Officer for fuel and maintenance costs.

7.8% 6.6% 1.1% 7.7% 4.5% 0.6% 0.2% 2.4% 6.2% 4.4% 1.8% 0.4% 0.2% 1.5% 0.1% 0.1% 3.9% 0.7% 1.2% 131 -0.8% 21.7% 14.2% 21.7% 15.5% Actual 2017/18 48. Honourable Speaker, Ward Executives administer all sectoral activities in the As PercentageAs GDP of 0.5% 0.3% 1.6% 0.1% 0.1% 4.1% 1.1% 1.1% 7.6% 6.4% 1.2% 8.4% 4.9% 0.7% 0.2% 2.5% 6.4% 4.5% 1.9%

-0.7% ward. Most of them work under vulnerable 22.4% 14.2% 22.4% 16.0% Actual 2016/17 conditions to facilitate development, oversee revenue management and security 0.4% 0.3% 1.2% 0.2% 0.1% 3.0% 2.3% 1.0% 0.4% 6.4% 5.0% 1.4% 5.6% 0.9% 0.2% 4.9% 4.3% 2.9% 1.4% 22.2% 13.4% 22.2% 18.0% 11.6% Actual issues. Most of the time, Ward Executive 2015/16 Annex No. 2b: Budget Frame forthe year 2015/16 2021/22 - Officers use their salaries when making follow up of Government revenue by hiring motorcycles to execute their duties. Generally, they are doing a good job in overseeing development activities. This was expressed with great emotions by a retired

Parastatal PE Sources Own LGAs Charges Other Ward Executive Officer, Honourable Rose : Ministry of Finance and Planning Finance of Ministry : Debt service Debt Others CFS Wages and Salaries o/w

CFS CFS) Recurrent (excl. Exp. Local Foreign Busiga, a Member of Parliament for Special Domestic revenue Sources Own LGAs Programme loans and grants loans and grants Project Loans support Basket Grants support Basket over roll Borrowing/ Non-Bank (Financing) Borrowing Bank Cash to Adjustment Non-Concessional borrowing Expenditure Recurrent Expenditure Development I. TOTAL RESOURCES EXPENDITURE II. TOTAL Source

Source GDPmp II. TOTAL EXPENDITURE RESOURCES TOTAL I. Development Expenditure Recurrent Expenditure borrowing Non-Concessional Adjustment to Cash BorrowingDomestic (Financing) Borrowing/Domestic roll over Basket support Grants Basket support Loans Project and grants loans and grants loans Programme LGAs Own Sources revenueDomestic

Seats for CCM (Geita), and supported by Foreign Local Exp. (excl.Recurrent CFS) CFS Parastatal PE o/w and Salaries Wages CFS Others Debt service other MPs. Her Excellency, President Samia : Ministry of Finance and Planning Other Charges LGAs Own Sources Suluhu Hassan has directed to find a solution to the matter. I propose that from 2021/22, the Government pays a monthly allowance of shillings 100,000 to each Ward Executive Officer through the Council

own sources which was previously used to 101,355,820 11,723,205 18,204,111 22,543,664 13,622,182 22,543,664 1,435,023 2,904,530 4,339,553 4,999,607 5,627,497 1,433,142 5,047,764 6,480,906 1,010,781 2,299,151 3,005,789 1,186,982 Annex No. 2a: Budget Frame for the year 2015/16 - 2021/22 2015/16 year the for Frame Budget 2a: No. Annex 170,340 925,760 453,504 161,842 291,381 425,852 2015/16 86,199

pay Councillors. Actual

113,553,411 18,144,967 25,417,791 16,128,215 25,417,791

Social Security Funds’ Debt 2,131,374 5,141,451 7,272,824 2,882,775 5,599,246 9,501,407 1,409,030 7,234,530 8,643,560 1,226,760 1,300,000 4,615,670 1,857,399 -838,731 251,484 767,901 168,984 104,991 342,785 511,718 2016/17 49. Honourable Speaker, Retirees served Actual our nation with great patriotism, integrity 122,835,229 18,995,074 26,610,843 17,403,388 26,610,843 2,218,735 5,397,034 7,615,768 2,917,811 5,544,384 9,462,087 1,399,924 8,133,063 9,532,987 1,474,282 4,835,199 1,856,185 -978,745 216,600 783,292 and diligence. We cannot count the success 869,200 117,166 246,688 541,499 2017/18 74,681 Actual of our country without mentioning their 130 contribution. There have been challenges in 132,049,549 20,468,676 28,962,515 17,868,195 28,962,515 1,957,959 6,535,879 8,493,838 2,654,163 5,699,188 9,663,058 1,411,696 7,701,842 9,113,538 1,144,822 3,037,177 3,718,008 1,822,839 349,322 960,385 361,320 181,378 125,396 paying their benefits due to the limited 659,098 2018/19 44,281 Actual resources of the Social Security Funds in

serving retirees. The situation is caused by, 143,297,783 10,286,658 20,206,266 29,515,050 20,352,708 29,515,050 -1,290,936 2,468,680 6,840,104 9,308,784 2,860,918 1,066,695 5,939,616 1,614,991 8,304,618 9,919,609 1,822,093 3,976,811 2,821,650 419,428 376,924 181,091 166,027 391,433 717,249 2019/20

among other things, the presence of debts Actual that the Security Funds owe the 157,767,884 10,043,206 12,779,255 11,623,706 10,476,832 22,100,538 34,879,793 23,250,582 34,879,793

Government. There have been challenges 2,736,049 3,379,447 1,179,357 6,583,033 1,826,891 8,649,941 3,035,630 1,588,169 3,316,078 2,460,506 481,870 196,538 138,323 814,961 2020/21 Budget faced by retirees in accessing their terminal 79,005

benefits. The matter has also been 0 155,005,471 11,137,558 21,113,852 30,059,331 20,697,193 30,059,331 1,915,234 7,030,244 8,945,479 2,970,469 1,167,563 6,542,126 1,439,675 8,536,619 9,976,294 2,276,723 1,588,169 3,316,078 1,744,783 -712,663

discussed with great emotions in this 457,401 258,205 744,603 2020/21 68,618 77,622 House. Her Excellency, the President, has Likely Tshs Million Tshs heard their voices and directed the Ministry 167,286,243 10,370,865 13,326,788 12,339,673 10,663,278 23,002,951 36,329,740 25,168,718 36,329,740 2,955,923 3,656,396 1,238,325 6,912,184 1,784,858 8,878,420 2,352,107 1,838,796 3,150,337 2,673,617 532,768 222,570 863,858 2021/22 Budget

of Finance and Planning in collaboration 59,736

with the Prime Minister’s Office to conduct 0 0

analysis for the actual status and best 48,897 977,618 1,605,305 3,282,441 6,593,344 7,840,532 2,857,098 2,093,424 3,119,939 Budget modality for settling of their debts. 2021/22 25,298,660 22,178,721 Tshs Million Tshs

729,945 744,603 50. Honourable Speaker, I propose to 1,387,078 2,808,699 5,226,689 6,678,667 2,315,000 1,551,114 Likely 3,025,662 2020/21 21,441,795 18,416,133 continue servicing the debts owed to the Social Security Funds by allocating money 814,961 1,473,805 3,002,765 6,029,967 7,029,831 2,789,413 1,055,638 1,869,164

3,739,763 in the budget as well as issuing non-cash Budget 24,065,543 20,325,780 2020/21 special bond that matures between 2 and 25 years. The benefit of using non-cash 738,810 717,249 1,253,272 2,512,423 4,987,319 6,490,240 2,379,569 1,991,076 3,447,135 Actual special bonds arrangement includes: 2019/20 21,069,957 17,622,822 provision of fiscal space for the Government

682,331 659,098 to implement other development projects; 1,201,045 2,370,414 4,736,876 5,072,402 2,130,594 1,674,534 3,015,963 Actual 2018/19 18,527,293 15,511,330 recognition of debts in the database; and prevention of further accumulation of debts 803,502 541,499 1,109,205 2,199,900 4,425,968 5,157,106 2,299,242 1,408,464 Actual as per the actuarial valuations. The 2,753,466 2017/18 17,944,887 15,191,421 arrangement will also improve the balance 129

998,164 893,935 511,718 sheet of the funds and cash-flow derived 2,106,442 3,912,674 5,117,862 1,991,449 1,107,690 2,513,343 Actual 16,639,933 14,126,590 2016/17 from returns earned.

880,296 388,551 799,449 425,852

2,144,395 2,992,835 4,594,971 1,912,880 51. Honourable Speaker, the Government 1,613,852 Actual 12,525,378 14,139,230 2015/16 has received complaints regarding delays and non-submission of staff statutory contributions to Social Security Funds by

Annex 1: Domestic Revenue Collection Trend: 2015/16 -2021/22 some Government institutions. I propose all statutory contributions to be paid directly from the Treasury for all institutions whose employees are paid through the Treasury. The Institutions that pay employees from their own sources will continue to submit : Ministry of Finance and Planning and Finance of :Ministry their employees' contributions to the funds 1. Import duty 2. Excise Duty 3. Value added tax tax Income 4. 5. Other taxes & Contributions Parastatal dividends 1. regions Ministriesand 2. source own LGAs 3. Total domestic revenue LGAs own source) (including A.Tax Revenue Non-tax revenueB. Source

34 under close supervision of the Government. The Government will review and pay the contribution arrears that have not been submitted to the Pension Funds to date.

The Police Force 52. Honourable Speaker, in the Police Force, some officers are employed under contracts of 12 years before being upgraded to permanent and pensionable terms. The delay in upgrading has a negative effect on the officers’ service protocol and benefits at their retirement. This has been the long- standing challenge to the police officers. Her Excellency has heard their voices and directed the Ministry of Finance and Planning to meet with the Ministry of Home Affairs to find a permanent solution. I recommend that, from the beginning of 2021/22 the Police Force officer will serve short term contract of 6 year before being employed on a permanent term.

Expedite Project Implementation 53. Honourable Speaker, in strengthening the management and efficiency in the implementation of the Government budget, the Ministry of Finance and Planning will amend Regulation 21 of the Budget Act, CAP 439 to allow Accounting Officers to

35 128 and the outbreak of COVID-19 Pandemic. submit requests to Paymaster General for Their prayers have helped peaceful transfer of unspent funds to Deposit th transition to new national leadership, the Account up to 30 June instead of 15 days President of the United Republic of before the end of the financial year. This Tanzania, Her Excellency Samia Suluhu will facilitate smooth implementation of Hassan. Therefore, I take this opportunity uncompleted activities beyond the end of to encourage them to continue praying financial year. On that basis, from now on, fervently for our Nation. there will be no funds with commitment to be returned to the Government th 129. Honourable Speaker, last but not Consolidated Fund by 30 June of each least, I would like to sincerely thank you for financial year except where the Accounting giving me the opportunity to present the Officers have violated the provisions of the budget speech. Indeed, I would also like to Budget Act, CAP 439 and the Public thank all Honourable Members of this Finance Act, CAP 348. House for your kind attention. Property Tax 130. Honourable Speaker, I beg to move. 54. Honourable Speaker, there have been challenges in the collection of property tax, which has led the Government to change the collection modality from time to time. Prior to 2017/18, property tax was collected by Local Government Authorities which did not perform. From 2017/18, the Government started collecting property tax through Tanzania Revenue Authority (TRA), which did not perform as well. This is due to fact that, both Local Governments and TRA were using outdated methods. In strengthening property tax collection, the Government has introduced measures to

36 127 address the shortcomings with the view to Moreover, I take this opportunity to express increasing efficiency and administration. my sincere appreciation to the voters of Iramba West Constituency who trusted me Small-Scale Entrepreneurs’ Fee and once again voted for me to become 55. Honourable Speaker, small-scale their representative in the National entrepreneurs have continued to be Assembly. I promise not to let them down. identified through Entrepreneur’s IDs. A total of 2,335,711 IDs have been issued 127. Honourable Speaker, I thank which facilitated the collection of 46.71 business community and all citizens who billion shillings to date. The Government have voluntarily continued to pay tax. My will continue to identify and create assurance to them is that, if we utilize our conducive business environment for small resources properly and work hard in unity, scale entrepreneurs to thrive. In 2020/21, we will make Tanzania an economic and improvements were made on the IDs by business hub for not only the East African incorporating photographs and names of Region but also the entire Africa. Further, I the bearers for control and facilitating thank the media for continuing to educate access to banking and health insurance the public on the importance of voluntary services. The President’s Office Regional tax payment for the development of our Administration and Local Government will nation. continue to administer IDs in collaboration with TRA. 128. Honourable Speaker, I would be indebted if I conclude my speech without IV. REFORM OF THE TAX STRUCTURE, thanking the religious leaders for their FEES, LEVIES AND OTHER prayers. It is through their prayers that our REVENUE MEASURES country conducted peacefully the General Election of 2020 for the President, Members 56. Honourable speaker, I propose to of Parliament and Councillors. In addition, make amendments to the tax structure that I would also like to thank them for their will include amendments to the tax rates, prayers during the difficult times including levies and fees imposed under various laws the demise of our beloved national leaders

37 126 to thank CPA Charles E. Kichere, the and also administration procedures on Controller and Auditor General for his government revenue collection. These excellent work in auditing and advising the amendments are intended among other Government. Also, I would like to thank things, to promote economic recovery to the CPA Athumani S. Mbuttuka, Treasury normal growth path after the impacts of Registrar for continued supervision of COVID -19, meanwhile maintaining parastatals and ensuring collection of stability in tax system which is predictable appropriate contributions and dividends. I for condusive investment climate suitable extend my appreciation to Dr. Albina A. for foreign direct investment as well as Chuwa, Statistician General for effective local. The reforms are expected to promote management of the National Bureau of economic growth particularly in Statistics (NBS) and preparations for the agriculture, industrial production, increase 2022 Population and Housing Census. individual purchasing power and therefore, increase Government revenue. In addition, 126. Honourable Speaker, I congratulate the Government is implementing the my fellow Ministers and all Deputy BLUEPRINT for Regulatory Reforms to Ministers who were trusted and appointed improve Business Environment by to their positions by Her Excellency Samia streamlining Government fees and levies Suluhu Hassan, President of the United with a view to abolish nuisance ones, Republic of Tanzania. In addition, I reduce rates or integrated payments which congratulate all my fellow members of the are charged by more than one organization. Parliament of the United Republic of The proposed amendments will cover the Tanzania, for being trusted by their political followings tax laws: - parties and voted by their constituencies to represent them in the National Assembly. a. The Value Added Tax Act, CAP 148; Sincerely, I would like to thank my beloved b. The Income Tax Act, CAP 332; wife Mrs. Neema Nchemba for her c. The Excise (Management and Tariff) encouragement, comfort and patience for Act, CAP 147; the entire period I have been away from my d. The East African Community Customs family during the execution of my duties. Management Act, 2004

125 38 e. The Tax Administration Act, CAP 438; have improved the 2021/22 budget f. The Local Government Finance Act, CAP estimates. 290; g. The Property Tax Act, CAP 289 124. Honourable Speaker, I would like to h. The land Rent Act, CAP 113; thank my fellow leaders and staff from i. The Stamp Duty Act, CAP 189; Ministry of Finance and Planning and j. The Vocational, Educational and institutions under the Ministry for their Training Act, CAP 82 support towards discharging day to day k. Gaming Act, CAP 41; responsibilities including preparation of the l. The Public Audit Act, CAP 418; Government budget. Specifically, I would m. The Government Loans, Guarantees like to thank Hon. Eng. Hamad Y. Masauni, and Grants CAP 134; Deputy Minister for Finance and Planning, n. The Motor Vehicle (Tax Registration and Member of Parliament for Kikwajuni Transfer) Act, CAP 124; Constituency. I thank Permanent Secretary o. The Road Traffic Act; CAP168; Treasury and Paymaster General, Mr. p. The Non-Citizens (Employment Emmanuel M. Tutuba, together with Regulation) Act, 2015; Deputy Permanent Secretaries, Ms. Amina q. Amendment of various fees and levies Kh. Shaaban, Mr. Adolf H. Ndunguru and imposed by Ministries, Regions and Dr. Khatibu M. Kazungu and all staff in the Independent Departments; Ministry of Finance and Planning. Further, r. Minor amendments in tax laws and I would like to thank, Prof. Florens D. other laws; Luoga, Governor of the Bank of Tanzania s. Implementation of the BLUEPRINT for for his diligent management of financial Regulatory Reforms to improve Business sector. Environment by amending various fees and levies; 125. Honourable Speaker, furthermore, I t. The Roads and Fuel Tolls Act, CAP 220; would like to thank Mr. Alphayo J. Kidata, u. The Petroleum Act, CAP 392; and Commissioner General of Tanzania v. The Electronic and Postal Revenue Authority (TRA) for his effective Communication Act, CAP 306; tax administration. In addition, I would like

39 124

Intelligence and Security Service, Diwani Athumani Msuya; Director General of A. The Value Added Tax Act, CAP 148 Prevention and Combating of Corruption 57. Honourable Speaker, I propose to Bureau, Commissioner of Police Salum make amendments in the Value Added Tax Rashid Hamdun; Commissioner General of Act, 2014, CAP 148 as follows:- Drug Control and Enforcement Authority, Gerald Kusaya Musabila; and i. Exempt Value Added Tax on cold rooms Commissioner General of Fire and Rescue (HS Code 9406.10.10 and 9406.90.10). Force, John William Masunga. We urge you The measure is intended to reduce to continue being patriotic in undertaking production costs and promote modern your responsibilities to ensure peace and horticultural farming in the country; security of our country. ii. Abolish Value Added Tax on imported 123. Honourable Speaker, I would like to precious metals and raw minerals. The thank and congratulate Honourable Sillo measure is intended to allow more Daniel Baran, the Chairperson of the importation of precious metals and raw Parliamentary Standing Committee for minerals for refining and smelting by Budget, and Member of Parliament for Local industries. This will increase Babati Rural Constituency and his Vice employment and Government revenue; Chairperson Honourable Omar Mohamed Kigua, Member of Parliament for Kilindi iii. Exempt Value Added Tax on insurance Constituency for their dedicated work in of livestock farming. This measure is analysing and providing valuable intended to promote livestock farming in contributions that have facilitated in addition to the crop insurance granted improving the Government budget last year; estimates. In addition, I congratulate Chairpersons, Vice Chairpersons and other iv. Exempt Value Added Tax on imported members of Parliamentary Sector and Local Purchases of Goods and Committees for their contributions which Services for East African Crude Oil Pipeline (EACOP). This measure is

123 40

intended to reduce operational cost of leadership has facilitated realisation of the pipeline project from Uganda justice for the vulnerable and improve the through Tanzania to the port; rule of law.

v. Exempt Value Added Tax on Crude Oil 121. Honourable Speaker, allow me to under HS Code 2709.00.00. This also congratulate Honourable Ambassador measure is intended to provide relief to Hussein Athman Kattanga for being final consumer including relief to the appointed the Chief Secretary who is also operational costs of the EACOP; Cabinet Secretary and Head of Public Service. I commend him for carrying out his vi. Exempt Value Added Tax on Artificial duties with excellence and professionalism. Grass with HS Code 5703.30.00 and Further, I congratulate Honourable 5703.20.00 for football pitches in City Othman Masoud Othman on his Councils. The exemption will be granted appointment the First Vice President of the subject to approval by Tanzania Football Revolutionary Government of Zanzibar and Federation. This measure is intended to Honourable Hemed Suleiman Abdulla for promote sports in the country; being appointed the Second Vice President of the Revolutionary Government of vii. Exempt Value Added Tax on Contactless Zanzibar. Smart Cards (HS Code 3921.11.90) and Card Consumables (HS Code 122. Honourable Speaker, I would like to 3921.11.90) for National Identification applaud and acknowledge Heads of the Authority. The measure is intended to security organs I take this opportunity to reduce cost of producing National recognize the Chief of Defence Forces, Identification cards; General Venance Salvatory Mabeyo; Inspector General of Police, Simon Nyakoro viii. Exempt Value Added Tax on imported or Sirro; Commissioner General of Prisons, Local Purchases of Goods and Services Major General Suleiman Mungiya Mzee; by a Non-Governmental Organisations Commissioner General of Immigration, Dr. (NGO’s) solely for implementation of Anna Peter Makakala; Director of Tanzania

41 122

119. Honourable Speaker, I would like to project through an agreement with the congratulate Right Honourable Kassim Government of the United Republic that Majaliwa Majaliwa, Member of Parliament provides Value Added Tax exemption on for Ruangwa Constituency for his the project; appointment and endorsement by the National Assembly to be the Prime Minister ix. Exempt Value Added Tax on smart of the United Republic of Tanzania. I phones with HS Code 8517.12.00, applaud him for his leadership in the Tablets with HS Code 8471.30.00 or Government as well as continuing to assist 8517.12.00 and Modems with HS Code the President to closely monitor the 8517.62.00 or 8517.69.00. The purpose implementation of the CCM Election of this measure is to promote usage of Manifesto 2020. data services in the country in order to attain the target of 80 percent of users of 120. Honourable Speaker, I would like to internet services by 2025 against the congratulate leaders of other pillars for current performance of 46 percent of their strong leadership. Starting with you, users in the country; Honourable Job Yustino Ndugai, Speaker of the National Assembly of the United x. Abolish Value Added Tax exemption on Republic of Tanzania and Member of cans intended for preserving milk with Parliament of Kongwa Constituency and HS Code 7310.29.20, instead exempt Honourable Dr. Tulia Ackson, Deputy Value Added Tax on both Aluminium Speaker and Member of Parliament of and Stainless-steel Milk cans with HS Mbeya Town Constituency for your Code 7310.29.90, 7310.10.00 and competence and wisdom in leading the 7612.90.90. The measure is intended to Parliament. Further, I congratulate reduce production costs and promote Honourable Prof. Ibrahim Hamisi Juma, modern dairy milk industry in the Chief Justice of Tanzania for his vigilant country; leadership of the Judiciary which focuses on the principles, values, and xi. Abolish Value Added Tax exemption on responsibilities of the Judiciary. Indeed, his Solar Lights with HS Code 85.13 and

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94.05. The measure is intended to align the treatment with the EAC-CMA 117. Honourable Speaker, allow me to exemption which aimed to exempt congratulate my predecessor Honourable equipment for generation of solar energy, Dr. Philip Isdor Mpango, for being leaving out the distribution and appointed by Her Excellency President transmission to the appliances that use Samia Suluhu Hassan and endorsed by the energy. However, the measure is also National Assembly as the Vice President of intended to bring equality for users of all the United Republic of Tanzania. In kinds of energy; addition, I would like to sincerely acknowledge his commendable work in xii. Zero rate Value Added Tax on economic management which enabled our transportation services of Crude oil and country to attain a middle-income status. all other related services attached in Also, I applaud him for his outstanding transportation of crude oil through the work in managing the Ministry of Finance pipeline which will be constructed under and Planning which has laid a good an intergovernmental agreement between foundation for me to execute my the Government of Tanzania and responsibilities. Government of Uganda (EACOP). This is an international best practice on transit 118. Honourable Speaker, I would like to nations; congratulate His Excellency Dr. Hussein Ali Mwinyi, for being elected the President of xiii. Limit Value Added Tax deferment on the Revolutionary Government of Zanzibar Capital Goods as specified under and Chairman of the Revolutionary chapters 84, 85 and 90 of the EAC CET. Council. The President has started his This measure is intended to address tenure by reviving the hopes for people of abuse of incentives granted incentives Zanzibar in stimulating economic due to lack of clarity; development particularly investing in Blue Economy. xiv. To change the manner in which VAT exemptions on Government and donor

43 120 complete the implementation of strategic funded projects will be granted whereby projects that stimulate economic growth, beneficiaries shall submit requests for improve social services and create exemption directly to the Commissioner employment opportunities, especially for General of the Tanzania Revenue the youth. The Government is determined Authority instead of the current to complete construction of: Mwalimu requirement of granting exemption Nyerere Hydro-Power Project, Standard through a Government Notice by the Gauge Railway (SGR), regional roads, the Minister for Finance. This proposal Kigongo-Busisi and other bridges as well as intends to simplify and enhance the distribution and connection of efficiency in the VAT exemption process electricity to all villages and households. by ensuring that VAT exemptions are processed and managed directly by TRA 115. Honourable Speaker, the through its offices throughout the Government will continue to modernise the country. City of Dodoma by improving its infrastructure. Activities to be undertaken xv. Amend Value Added Tax Act to restore include construction of: Government offices VAT refund for goods purchased in at Mtumba; ring-roads, water Tanzania Mainland and utilised in infrastructure, and Msalato International Zanzibar by registered persons. Zero-rate Airport. VAT system for manufactured goods only resulted into Zanzibar traders who 116. Honourable Speaker, Her Excellency purchase goods with VAT in Tanzania the President has sent me to reassure Mainland being taxed again for the same Tanzanians through this speech that, we goods in Zanzibar. In addition, i propose continue to build our nation, we continue reciprocal treatment for goods from to build our nation, come rain or shine, we Zanzibar for consumption in Tanzania will continue to build our nation, be night Mainland. In line with my proposal, or day, we will continue to build our nation. amendments to the relevant provisions No project or development intervention of the VAT Acts for both parties to the shall stall. “KAZI INAENDELEA.” union will be made accordingly.

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Moreover, VAT records systems will be invest in tax evasion rather invest in tax interfaced in order to make the refund compliance. If you bribe an official to assist mechanism effective. Subsequently, I in tax evasion, it is very likely audit propose to remove zero-rating of findings will implicate you. I direct the products manufactured in mainland Commissioner General of Revenue Tanzania which are consumed in Authority to establish a dedicated team to Zanzibar. monitor use of EFDs and other tax The VAT measures altogether are expected collection systems are functional. to reduce Government revenue by shillings 55,499.97 million. 113. Honourable Speaker, we will continue to ensure discipline in public B. The Income Tax Act, CAP 332 expenditure! We will ensure discipline in 58. Honourable speaker, I propose to public expenditure! We will ensure make amendments to the Income Tax Act, discipline in public expenditure and CAP 332 as follows: - continue to fight against corruption and embezzlement. I am aware of fraudulent i. Reduce the minimum PAYE rate from 9 and thieves’ techniques, and those who percent to 8 percent. This measure aims continue with the habit of embezzling at providing tax relief to employees. The taxpayer’s money, I will pounce on them measure will reduce Government like an eagle. Kazi inaendelea, all revenue by shillings 14,178.06 million Tanzanians should continue to trust our but will improve workers welfare. The President, she is vigilant and so is the current rates and proposed rates are as Government. The Government will explicitly indicated hereunder; and implicitly fight all corrupts under the leadership of Her Excellency Madam President.

114. Honourable Speaker, the Government is committed to timely

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some lenders take advantage of delays to Table No. 1a. Current Rates Total Income Rate Payable call off the collateral. There are instances Where the total income NIL does not exceed Shs. that collateral is auctioned even when a 3,240,000/= Where the total income 9% of the amount large portion of the loan has been repaid. exceeds exceeding Shs. Shs.3,240,000/= but 3,240,000/= This happens in the interest of the lender does not exceed Shs..6,240,000/= or any other affiliated party. I plead to the Where the total income Shs. 270,000/= plus exceeds 20% of the amount security organs to monitor and take Shs.6,240,000/= but exceeding Shs. does not exceed Shs. 6,240,000/= corrective actions to protect both lenders 9,120,000/= Where the total income Shs 846,000/= plus exceeds 25% of the amount and consumers. Shs.9,120,000/= but exceeding Shs. does not exceed Shs. 9,120,000/= 12,000,000/= Where the total income Shs. 1,566,000/= plus 112. Honourable Speaker, the Sixth exceeds 30% of the amount Shs.12,000,000/= exceeding Shs. Regime will continue to improve revenue 12,000,000/= collection. Revenue collection will be based Table No. 1b. Proposed Rates Where the total income NIL on professionalism, rules and fairness. For does not exceed Shs. 3,240,000/= those who think that we will relax revenue Where the total income 8% of the amount exceeds exceeding Shs. collection efforts, I would like to emphasize Shs.3,240,000/= but 3,240,000/= does not exceed Shs. that we shall collect Government 6,240,000/= Where the total income Shs. 240,000/= plus revenue! We shall collect Government exceeds 20% of the amount Shs.6,240,000/= but exceeding Shs. does not exceed Shs. 6,240,000/= revenue! We shall collect Government 9,120,000/= Where the total income Shs. 816,000/= plus revenue! I call upon all Government exceeds 25% of the amount officials responsible for collection of tax, Shs.9,120,000/= but non-tax and levies to clearly understand that, these are the fundamental principles ii. Exempt Income Tax on interest income to be adhered-to in line with the directives derived from Government bonds. The of Her Excellency the President of the Government exempted Income Tax on United Republic of Tanzania. There are interest derived by a person from baseless excuses relating to malfunctioning Treasury bonds of not less than three of the tax collection system and EFD as years’ maturity for the fiscal year well as poor network that may compel the 2002/03 only. This measure is intended Government to revert to “task force”. Do not to extend the exemption in order to 117 46

promote investment in treasury bonds 110. Honourable Speaker, we must build meanwhile financing government a culture that protects public and private projects; properties. In terms of public property, we must exercise patriotism and integrity as iii. With a view to streamline process of we fulfil our responsibilities. The exempting development projects funded Government is allocating a lot of resources by Governement on specific projects, for project implementation, while not grants and concessional loans, I propose realising the value for money due to to reinstate power of the Minister to unethical behaviour in the procurement grant income tax exemption without a process. I urge all public officer entrusted requirement for approval by the Cabinet with procurement matters to adhere to the on implementation of such projects, laws, procedures, regulations and to provided that there should be an exercise patriotism and high integrity. The agreement between the donor or lender Government, will therefore, institute with the Government of the United deliberate measures to strengthen legal Republic which provides for income tax administration and procurement exemption; procedures. iv. Introduce a non-final withholding tax of 111. Honourable Speaker, in terms of 2 percent on payments which are made private property, we must respect our to suppliers of agro-products, livestock businesses and the assets generated by and fisheries when supplied to those businesses. There are practices taken processing industries, millers and other by both public and private sectors that Government Agencies. Currently, only weaken our economy. For example, the Government Institutions such as NFRA, tendency of defaulting debt service withhold 2 percent on payments as a obligations, which reduces the ability of non-final withholding tax to withholdees. banks to issue loans. There are also However, this measure will not apply to instances of debtors deliberately delaying small farmers and sales to Agricultural debt payments through court injunctions. Marketing Cooperatives Societies This is an abuse of rule of Law. Similarly, 47 116 you commit a foul for the first time, you (AMCOS). This measure is expected to receive a red card. Even when it is the fans increase Government revenue by or another player crying a foul, he awards a shillings 43,954.2 million; red card. I, personally was awarded a red card and missed several matches. The late v. Amend the Income Tax Act, in order to Dr. Magufuli was a believer of high level of enable depreciation costs calculation at discipline. Her Excellency was line one and a rate of 5% on the cost of assets under Hon. Majaliwa was line two. Her Excellency the East African Crude Oil Pipeline has been part of that regime embracing (EACOP). This measure is intended to patriotism, diligence, practical, result harmonize the depreciation cost with the oriented and work discipline. She equally lifetime of the respective crude oil carries the "red card". pipeline in accordance with the agreement signed between the 109. Honourable Speaker, evidently, Her Governments of Uganda and Tanzania; Excellency carries both yellow and red cards. Her Excellency is a true patriot with vi. I proposed to introduce taxation of high integrity, bold, visionary, believer in individuals engaged in small mining Institutional Framework and performance operations whose annual turnover does and action oriented. A fair referee is always not exceed Tanzania shillings 100 unbiased. In wrestling you are warned don’t million per annum as follows: try this at home. In the national interest, “never try Her Excellency at all to avoid a. Introduce special income tax at a the Red card”. I urge public servants and rate of 3% of the sale value of the all Tanzanians to work hard, embrace minerals; integrity and patriotism. Public servants b. Establish time of payment of should prudently manage taxpayers' money income tax for individuals engaged with high integrity and all Tanzanians in small scale mining operations to should voluntarily pay taxes. be the time when selling minerals as opposed to the current regular installment arrangement which

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oblige them to pay tax regardless of believed in the Systems, Institutions and the cash flows; Institutional Performance. Likeliness, I c. Create an obligation for individual would call him a "Referee in a football employers engaged in small scale game”, who plays his matches with a mining operations to withhold tax "yellow card only", leaving a red card at at the time of selling minerals and home. If you commit a foul for the first payment of royalty as established time, he warns you verbally, if you repeat by the Mining Commission; the foul, he warns you with a yellow card d. Establish the time of payment of and if you make another mistake, you withholding tax on payments from receive a second yellow card. Fortunately, persons engaged in small scale any subsequent foul entails a verbal mining operations to be the time of warning due to the fact that he often leaves selling minerals and payment of the red card at home. President Kikwete royalty at the mining area, mineral strongly believed in institutional framework buying stations or at mineral and and performance. In my view, Her gem Houses designated by the Excellency leadership has demonstrated Mining Commission under the that she learned a lesson in that regime Mining Act; and including the lesson of patriotism, vision e. To amend paragraph 4(a)(iii) of the and belief in "institutional framework and First Schedule in order to introduce performance", and I can say she has taken income tax at the rate of 0.6 the "yellow card" and started to use it. percent of the sale value of the minerals. The payment shall be 108. Honourable Speaker, Her Excellency deemed as PAYE from employment was the Vice President in the fifth regime income of an employee to an led by the late President Dr. John Pombe individual in a small scale mining Magufuli. President Magufuli was a true operations at the time of selling patriot, visionary, dedicated, practical and minerals and payment of royalty at result-oriented leader. As a football referee, buying stations or at Mineral and he manned his matches with a "red card only" leaving the yellow card at home. If

49 114 expenditure management, she has made Gem Houses designated by the it clear that she will be bold in fighting Mining Commission. against corruption. The Income Tax measures altogether are 106. Honourable Speaker, in these expected to increase Government revenue regards, Her Excellency has shown that, by shillings 29,776.14 million. holding various posts in different phases of the Government in United Republic of C. The Excise (Management and Tariff) Tanzania (URT) and Revolutionary Act, CAP 147 Government of Zanzibar (RGoZ) has made 59. Honourable Speaker, the Excise Tax her to be a prepared leader and equipped to (Management and Tariff) Act, CAP 147 lead the country with great success. It will Section 124(2), provides for annual be recalled that, apart from many other adjustments of the specific excise duty positions she held in her nearly twenty rates of non petroleum products indexing to years in Government, Her Excellency has cater for inflation and other key been a Minister in Phase Four Government macroeconomic indicators. However, due to and has been a Vice President in Phase the impact of COVID 19 pandemic which Five Government. “There are leadership affected production of some excisable styles she has learned” industrial goods, I propose not to amend the specific excise duty rates for all non 107. Honourable Speaker, “She learned petroleum products except for spirits and different style of leadership”, through local beer that will be manufactured using different Government regimes, she was locally grown malt barley. appointed to serve various positions. Her 60. Honourable Speaker, I propose to Excellency was the Minister in the fourth amend the Excise Tax (Management and Phase led by President Dr. Jakaya Mrisho Tariff) Act, to undertake the following:- Kikwete. Honourable Kikwete was a true patriot, he was a visionary leader, he was a i. Reduce excise duty rate for beer made Teacher, Father, Guardian and Leader, he from locally grown and malted barley was very Compassionate, Patient and from shillings 765 per litre to shillings

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620 per litre. The aim of this measure is to promote use of Locally grown barley in VI. CONCLUSION manufacturing of beer and create eployment; 104. Honourable Speaker, before ii. To introduce excise duty of 10 percent concluding my speech, I sincerely thank on on imported and locally produced Her Excellency Samia Suluhu Hassan, the synthetic (plastic) fibres (Heading 55.11 President of the United Republic of and 56.07) except fishing twine (HS Code Tanzania, for trusting and appointing me 5607.50.00). This measure aims to the Minister for Finance and Planning. I promote Local manufacturing of sisal promise Her Excellency President, Members products and protecting environment. of Parliament and all Tanzanians that I will This measure is expected to increase fulfil this obligation with integrity and Government revenue by shillings 2,644 professionalism. I pray to Almighty God to million; and grant me good health and wisdom in iii. To introduce an excise duty rate of 10 discharging these responsibilities. Let me percent on imported used Motorcycles explain few important issues before aged more than 3 years (HS Code 8711). concluding this speech. The objective of introducing excise duty on these products is to discourage 105. Honourable Speaker, first of all, I importation of used Motor Cycle and would like to congratulate Her Excellency controlling anti-dumping. This measure for the great hope she has given the is expected to increase Government Tanzanians by showing that she is a revenue by shillings 263.7 million. vigilant, strong, hardworking, honest and The Excise Duty measures on non- responsive leader with a consistent vision petroleum products altogether are expected of bringing great progress to our country. to increase Government revenue by shilling She clearly indicated that, she want 2,907.7 million. fair method of tax collection, to run the Government from fairly collected revenue, she made it clear that she will stand firm on Government revenue and

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103. Honourable Speaker, consistent with D. The East African Community my explanation above, the budget frame for Customs Management 2021/22 is as shown in Table A Act, 2004 Table No 2: Budget Frame for 2021/22 61. Honourable Speaker, the Pre-Budget Consultative Meeting of the Ministers of Finance from the EAC-Partner States which was held on 7th May, 2021 proposed to effect changes in the Common External Tariff (CET) rates and the East African Community Customs Management Act (EAC-CMA), 2004 for year 2021/22. The proposed changes are aimed at “Economic Recovery through Industrialization and Inclusive Growth.”

62. Honourable Speaker, the Ministers for Finance proposed to effect new changes in the Common External Tariff (CET) for year 2021/2022 and also agreed to continue with implementation of some measures that were effected during the financial year 2020/21.

i. The proposed new changes in the Common External Tariff are as follows: - a. Stay of application of the EAC CET rate of 25% and apply a duty rate of 10% for buses for transportation of more than 25 persons HS Code 8702.10.99 and 8702.20.99 imported

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for rapid transport project for one year. The objective of the measure is 102. Honourable Speaker, development to de-congest the city and ease the expenditure is estimated at 13.33 trillion transportation system within the shillings, equivalent to 37 percent of the country. total budget, comprising of 10.37 trillion shillings from domestic sources and 2.96 b. Stay of application of the EAC CET trillion shillings from external sources. rate of 10% and apply a duty rate of Development funds include 1.19 trillion 25% for one year on cotton yarns shillings for railway projects including the Headings 52.05; 52.06; and 52.07. construction of Standard Gauge Railway; There is a great potential of producing 2.08 trillion shillings for construction of cotton yarns in the country by roads, bridges and airports; 2.34 trillion increasing value addition of cotton shillings for power generation, transmission and enhance cotton to cloth (C2C) and distribution projects including Julius strategy; Nyerere Hydro Power Project; 589.4 billion shillings for urban and rural water projects; c. Stay of application of the EAC CET 233.3 billion shillings for purchase of rate of 10% and apply a duty rate of medicines, medical equipment and 25% for one year on new pneumatic reagents; 500.0 billion shillings for higher tyres of rubber, of a kind used on education students’ loans; 215.6 billion motorcycles HS Code 4011.40.00. shillings for the preparation of the 2022 This measure is intended to protect Population and Housing Census; and 312.1 local manufacturers of pneumatic billion shillings for fee free basic education. tyres; Further, the Government has set aside 400.0 billion shillings for payment of d. Stay of application of the EAC CET verified arrears to contractors and rate of 25% and apply a duty rate of consultants. 35% for one year on Peanut Butter HS Code 2008.11.00 in order to promote the growth of small and medium

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enterprises engaged in peanut 100. Honourable Speaker, the processing; Government plans to borrow 7.34 trillion shillings from domestic and external e. Stay of application of the EAC CET sources on commercial terms of which, rate of 10% and apply a duty rate of 4.99 trillion shillings is domestic borrowing 0% for one year on Wires of other which includes 3.15 trillion shillings for alloy steel HS Code 7229.20.00 and rolling over of maturing Government 7229.90.00. This measure is intended treasury bills and bonds and 1.84 trillion to reduce the cost of these inputs shillings for financing development used by local manufacturers; projects. In addition, 2.35 trillion shillings are expected to be borrowed from external f. Stay of application of the EAC CET sources for implementation of development rate of 25% and apply a duty rate of projects. 0% for one year on Milk cans HS Code 7310.10.00 and 7310.29.90 in order 101. Honourable Speaker, in 2021/22, to provide relief for the diary sector in the Government plans to spend 36.33 the country. trillion shillings for recurrent and development expenditures of which, 23.0 g. Grant duty remission at a duty rate of trillion shillings is allocated for the 0% instead of 10% for one year on recurrent expenditure and 13.33 trillion Organic surface-active agents shillings for development expenditure. The (Anionic) HS Code 3402.11.00 used allocation for recurrent expenditure by manufacturers of detergents and includes 10.66 trillion shillings for servicing liquid soaps. The objective of this Government debt, 8.15 trillion shillings for measure is to reduce the cost of salaries and wages, and 4.19 trillion inputs for detergents and liquid soaps shillings for other charges including, 200.0 manufacturers in the country; billion shillings for payment of verified arrears to public servants, suppliers and h. Grant duty remission at a duty rate of service providers. 0% instead of 25% or 10% for one

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year on raw material used in leather trillion shillings will be through Project processing HS Codes 3208.20.00 and financing and 282.3 billion shillings 3210.00.10 in order to promote through Basket Fund financing. I would growth of local leather industries. like to thank the Development Partners for their continuous support in i. Grant duty remission at a duty rate of implementation of various development 0% instead of 25% or 10% for one projects and programs in the 2021/22 year on raw materials used to budget. manufacture different types of fertilizers for fertilizer manufacturers 99. Honourable Speaker, I would like to HS Codes 2710.99.00; 2528.00.00; recognize our Development Partners as 3505.20.00. This measure aims at follows: Belgium, Canada, China, Denmark, promoting growth of local Finland, France, Germany, India, Ireland, manufacturers of fertilizers; Italy, Japan, Netherlands, Norway, Poland, South Korea, Sweden, Switzerland, United j. Grant duty remission at a duty rate of Kingdom, United States of America and 0% instead of 25% for one year on United Nations (UN) and all its agencies. packaging materials for processed Moreover, there are International tobacco HS Code 5310.10.00 in order Organizations which are: African promote growth of local manufactures Development Bank, World Bank, Arab Bank of tobacco; for Economic Development in Africa (BADEA), Global Fund, Kuwait Fund, Abu k. Grant duty remission at a duty rate of Dhabi Fund, European Union (EU), 0% instead of 25% for one year on European Investment Bank (EIB), OPEC packaging materials for processed tea Fund for International Development, Global HS Codes 4819.20.90; 5407.44.00; Environmental Facility (GEF) and GAVI. I 3923.29.00 for local manufacturers of would also like to recognize local and tea (blenders). The objective is to international NGOs as well as promote growth of local manufactures philanthropies for their support various of tea in the country; sectors.

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Mtwara regions; and construction of a mobile phone assembling factory through l. Grant duty remission at a rate of 10% the Tanzania Communications Regulatory instead of 25% for one year on Authority (TCRA). Citizens and other aluminium alloy circles HS Code investors are invited to identify projects of 7606.92.00 to manufacture cooking their interest to be implemented under PPP pots. The objective is to reduce cost of arrangement. production for local manufacturers of aluminium cooking pots; V. BUDGET FRAME FOR 2021/22 m. Grant duty remission of 10% 97. Honourable Speaker, consistent with instead of 25% for one year on CKD macroeconomic and fiscal policy objectives, for Three-Wheel Motorcycle excluding the budget frame for 2021/22 shows that Chassis and its components HS Code 36.34 trillion shillings will be mobilized and 8704.21.90. The measure is intended spent. Total domestic revenue (including to reduce cost of production for local LGAs own sources) is estimated at 26.03 manufacturers of Three-Wheel trillion shillings, equivalent to 71.7 percent Motorcycles used for cargo of the total budget. Out of the amount, tax transportation. revenue is estimated at 22.18 trillion shillings, equivalent to 13.5 percent of n. Grant duty remission at a duty rate of GDP. Non-tax revenue is estimated at 2.99 0% instead of 25% or 10% for one trillion shillings while revenue from LGAs year on inputs used to manufacture own sources is estimated at 863.9 billion Glass Reinforced Plastic pipes. shillings. (Polyester Film 50mm & 200mm; Tissue Mat 30gr; Chopped Strand 98. Honourable Speaker, grants and Mat/Knitted glass Mat; Mesh cloth concessional loans from Development liner; Sand holding cloth (Polyester Partners are estimated at 2.96 trillion Mesh); Direct Roving (2400 TEX); shillings, equivalent to 8.1 percent of the Direct Roving (600 TEX); Chop total budget. Out of the amount, 2.67 Roving; Surface Liner; Rubber O-ring;

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Rubber Gasket; and Resin Cystitis; well economically have been using the HS Codes 3920.61.10; 7019.39.00; Eurobond as a source of financing. To 7019.31.00; 6006.90.00; 6006.90.00; access the market, Tanzania will require an 7019.12.00; 7019.12.00; 7019.12.00; official credit rating. 3920.10.10; 4016.93.00; 4016.93.00; and 3907.91.00). The objective is to 95. Honourable Speaker, despite the promote local manufacturers of glass potential benefits from the PPP reinforced plastic pipes and create arrangement especially in mega projects more jobs in the country; that require a huge funding and expertise from the private sector, the Government o. Tanzania together with other EAC has not realised tangible results in this partner States agreed to reduce area since enactment of the PPP Act in import duty rate from 10% to 0% on 2010. We are all aware that PPP is a type of Flat-rolled products of other alloy project funding that reduces burden on the steel, of a width of 600 mm or more Government budget and is neutral to public HS Code 7225.30.00. This measure is debt. We therefore plan to use PPP intended to reduce the cost of this arrangement for projects in line with the input used by local manufacturers; Public-Private Partnership Act, CAP 103. ii. The measures that were effected during 96. Honourable Speaker, In view of the 2020/21 which continue to be benefits of the PPP, the Government will implemented in 2021/22 are as follows: - accelerate/expedite the implementation of a. Continue to grant duty remission at a joint venture projects between the Public duty rate of 0% instead of 25% or and Private Sectors including: construction 10% on inputs for the manufacture of of essential pharmaceutical industries and essential medical products and medical equipment; construction of a four supplies for fighting COVID-19 star hotel and integrated business centre at including masks, sanitizers, coveralls, Julius Nyerere International Airport; face shields and ventilators for one construction of natural gas distribution year. The objective is to promote infrastructure in Dar es Salaam, Lindi and

57 106 the Capital Markets and Securities domestic production of items for Authority (CMSA) have begun scrutinising fighting COVID-19 health pandemic; potential Councils, Municipalities and Cities with the view to identifying eligible projects to be financed using Municipal b. Continue to grant stay of application bonds. of EAC CET rates of 10% and apply duty rate of 0% for one year on Cash 93. Honourable Speaker, the Government registers and Other Electronic Fiscal recognizes the importance of opening up Device (EFD) Machines and Point of the domestic market for foreign investors. Sale (POS) of HS Codes 8470.50.00 This move will support development of the and 8470.90.00. The objective is to domestic debt market in line with the encourage the use of electronic Medium-Term Debt Strategy (MTDS). The devices for accounting of Government initiative coincides with other measures revenues; proposed to open the Government bond market for foreign investors outside East c. Continue to grant duty remission at a Africa. duty rate of 0% instead of 25% for one year on other packing containers, 94. Honourable Speaker, the global including record sleeves as inputs Eurobond market is estimated to have more used by domestic manufacturers of than USD 30 trillion available for the UHT milk HS Code 4819.50.00 in countries seeking financial resources order to promote growth of domestic through loans from highly liquid Milk processing industry; international capital markets to finance development projects. This approach is also d. Continue to grant duty remission at a used by international organizations such as duty rate of 0% instead of 10% for one the World Bank and the African year on Corks and stoppers HS Code Development Bank to fund their projects 4503.10.00 used as inputs by around the world. In addition, some sub- domestic manufacturers of local wines Saharan African countries that are doing so as to promote the growth of grapes

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farming and wine industries in the the country is economically capable of country; accessing market funding sources. In that regard, the Government must explore e. Continue to grant stay of application alternative sources of financing. Currently, of the EAC CET rate of 25% and apply the Government is analysing the potential a duty rate of 35% for one year on sources of financing such as Blended Ceramic tiles HS Code 6907.21.00, Finance for development projects. 6907.22.00 and 6907.23.00. This measure is intended to protect local 91. Honourable Speaker, in 2021/22, the manufacturers of ceramic tiles in the Government intends to finalize the country; sovereign credit rating process to facilitate access to international financial markets f. Continue to grant stay application of through issuance of sovereign bonds or the EAC CET rate of 25% and apply a Eurobonds. The rating will enable the duty rate of 35% for one year on Tea, country to gauge her position in the whether or not flavored Heading international financial markets and assist 09.02. This measure is intended to prospective lenders in the assessment of protect local processors of tea in the the risks. The rating is also expected to country; widen lenders base. g. Continue to grant stay of application 92. Honourable Speaker, in an effort to of the EAC CET rate of 25% and apply expand the sources of financing, the a duty rate of 35% for one year on HS Government will explore the possibility of Code 6305.10.00 (Sacks and bags, of issuing municipal bonds as an alternative Jute or other textile bast fibres of source for financing bankable strategic heading 53.03). The objective is to projects in Municipal and City Councils. encourage growth of the sisal The arrangement will reduce burden on the products industries in the country; Government budget. The Government in collaboration with the United Nations Capital Development Fund (UNCDF) and

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expected to increase Government h. Continue to grant stay application of revenue by shillings 396,306.0 million. EAC CET rate of 0% and apply a duty rate of 10% for one year on Cocoa d. The Excise (Management and Tariff) powder, not containing added sugar Act, CAP 147; or other sweetening matter Hs code Given that spirits have a high alcohol 1805.00.00. The measure is intended content, I propose to increase excise duty to promote domestic cocoa seeds by 30 percent on all spirits in order to production and enhance value balance the tax rates between Spirits and addition in the country; Beer. This move is expected to increase Government revenue by 60,769.35 million i. Continue to grant duty remission at a shillings. duty rate of 0% instead of 25% for one year on packaging materials for All these four measures together are processed coffee HS Codes expected to increase Government revenue 7310.21.00; 6305.10.00; 3923.50.10; by 2,033,639.66 million shillings 3923.50.90 and 3920.30.90 in order to promote domestic coffee processors in the country; U. Effective Date for Implementation of New Revenue Measures j. Continue to grant duty remission at a 89. Honourable Speaker, unless otherwise duty rate of 0% instead of 25% for one stated, the new measures shall become year on Sacks and bags of polymers of effective on 1st of July, 2021. ethylene as inputs used by domestic processors of cashew nuts HS Code 3923.21.00. The objective is to V. Alternatives to Implement Large- promote growth of domestic cashew Scale Projects nuts processing industry in the 90. Honourable Speaker, in 2020, country; Tanzania successful graduated to a Lower Middle-Income status which implies that,

103 60 k. Continue to grant duty remission at a petrol be used for road maintenance in duty rate of 0% instead of 25% for one rural areas through TARURA; year on inputs used by domestic This measure is expected to generate processors of cotton lint HS Code Government revenue by shillings 3920.30.90; 6305.39.00;7217.90.00; 322,158.20 million. This measure is intended to promote cotton processing in the country; b. Petroleum Act, CAP 392 I propose to amend the Petroleum Act to l. Continue grant duty remission at 0% increase the Fuel Levy from 150 shillings to instead of 25% on raw materials used 250 shillings. This measure is intended to to manufacture baby diapers reduce adulterations of fuels due to the  Super Absorbent increase of Road and Fuel tolls on Petrol Polymer/Powder Hs Code: and Diesel. 3906.90.00;  Polyethylene Laminated c. The Electronic and Postal Nonwovens Hs Code: Communication Act, CAP 306; 5903.90.00; I propose to amend the Electronic and  Spandex Hs Code: Postal Communication Act as follows: 5402.44.00; i. Impose a Levy of between10 shillings to  PE Film/Packing Film Hs 10,000 shillings in each mobile money Code: 3920.10.90; transaction of sending and withdrawing.  PE Film/Packing Film Hs The amount of the levy varies depending Code: 3920.10.10; on the value of each transaction sent or  Non-Woven Hs Code: withdrawn. The proposal is expected to 5603.11.00; increase Government revenue by  Hot Melt Adhesive Hs Code: shillings 1,254,406.14 million; and 3506.91.00; ii. Impose a levy of between 10 shillings to 200 shillings per day per SIM card  Molded Hook Hs Code: 5806.10.00; depending on the ability of the user to recharge the balance. The proposal is

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the dignity of Tanzanians and are projects  Wet Strength Hs Code: built by Tanzanians themselves. The late 4803.00.00; President John Pombe Magufuli repeatedly This measure is intended to reduce the cost said that, failure to accomplish these of production for manufacturers of baby projects will be a curse to our Nation. No diapers in the country; one will come and build these projects for us, rather we need to honour the vision m. Continue to grant duty remission carriers of these projects by ensuring that, at a duty rate of 0% instead of 25% or they are in place. The late Mwalimu Nyerere 10% for one year on inputs used by carried the vision of these projects, domestic minerals processors (HS President Magufuli initiated these projects, Codes 3606.90.00; 6804.10.00; and President Samia is going to complete 6813.20.00; 7018.90.00; 7020.00.99; these projects. I assure Tanzanians that, 8202.20.00; 8202.99.00; 8203.20.00; we will not abandon a project. 8205.10.00; 8423.89.90; 8513.10.90; 9002.19.00). This measure is 88. Honourable Speaker, in order to curb intended to create value addition of all challenges mentioned above, I therefore gemstones and employment creation; propose to take the following measures: n. Grant duty remission at 10% instead a. The Roads and Fuel Tolls Act, CAP of 25% on paper products HS Code 220; 4805.24.00 and HS Code 4805.25.00 I propose to amend the Roads and Fuel as raw materials used for Toll, CAP 220 as follows: manufacturing of packaging materials i. Increase Road and Fuel Tolls by 100 (corrugated boxes). The objective of shillings per each litre of Petrol and this measure is to encourage domestic Diesel; and investment in production of ii. Amend section 4 A (a) of the Act in order corrugated boxes and reduce the cost to provide for the amount of 100/= of packaging materials. shillings collected from both diesel and

101 62 o. Continue to grant duty remission at students from the education system 0% instead of 25% on packaging because of pregnancies, absenteeism and materials for seeds used by local other reasons. It is undisputed that, lack of producers of agricultural seeds HS a plan to finance these needs is the source Code 3923.29.00; 6305.10.00; of the dropouts. This situation has made 4819.40.00; 7310.29.90; 6305.33.00; Tanzania's education not to be highly 6305.20.00; 6304.91.90 and accommodative. We also have no choice to 7607.19.90. This measure is intended these problems but to unlock them by to reduce the cost of packaging mobilizing enough resources to resolve. materials for domestic producers of agricultural seeds; 86. Honourable Speaker, In terms of higher education, more than 11,000 university- p. Continue to grant stay application of qualified students who have already EAC CET rate of 25% and apply a obtained admission to various colleges do duty rate of 35% for one year on not access higher education students’ coffee whether or roasted or loans. It is so frustrating for a child who is decaffeinated, coffee husks and skins missing a student loan while his or her coffee substitutes containing coffee in peers continue with higher education. It is any proportion with Heading 09.01. stressful for him or her and the whole This measure is intended to protect family. This situation is bad and should not coffee processors in the country; be allowed to continue. q. Continue to grant stay application of v. Nyerere Hydropower and Standard EAC CET rate of 10% and apply a Gauge Railway (SGR) Model Projects duty rate of 10% or USD 125/MT 87. Honourable Speaker, Mwalimu Nyerere whichever is higher for one year on Hydropower and Standard Gauge Railway iron and steel products HS Code (SGR) projects are not only state of the Art 7209.16.00; 7209.17.00; 7209.18.00; projects but “mother” projects for every 7209.26.00; 7209.27.00; 7209.28.00; Tanzanian. They are projects that define 7209.90.00; 7211.23.00; 7211.90.00; the independence of our country, defines

63 100 iv. Education 7226.92.00; and 7225.50.00. This 84. Honourable Speaker, there is still a lot measure is intended to protect iron of work ahead of us in the education sector. and steel manufacturers in the There are still schools that have more country; students beyond capacity of existing classes; in some of the schools students r. Continue to grant a Stay application attend classes in shifts to give space for all of EAC CET rate of 25% or USD students to attend classes in the morning 200/MT whichever is higher and and afternoon sessions, which enormously apply a duty rate of 25% or USD reduces the students' learning time. Yet, 250/MT whichever is higher for one there are schools partition in one class to year on Flat-rolled products of iron or accommmodate two grades in one room. non-alloy steel, of a width of 600 mm Some schools are dilapilated threatening or more plated or coated with zinc HS the safety of our children and our teachers. Code 7210.41.00; 7210.49.00; I would like to bring into your attention 7210.61.00; 7210.69.00; 7210.70.00; that, next year the Government will register 7210.90.00. This measure is intended form one students who benefited from a fee to protect iron and steel – free education. If this will not be manufacturers in the country addressed earlier, it will result into an influx of students selected to join Form One s. Continue Stay application of EAC CET but cannot be accommodated until we rate of 10% and apply a duty rate of prepare infrastructures to absorb. It is 10% or USD 250/MT whichever is unacceptable and intolerable to allow this higher for one year on Flat-rolled situation to happen. The country is left products of iron or non-alloy steel, of with no choice but to mobilize the a width of less than 600 mm, clad. HS resources so as to build schools for our Code 7212.60.00. This measure is children of today and tomorrow. intended to protect iron and steel manufacturers in the country; 85. Honourable Speaker, every year there are between 15-20 percent of dropout

99 64 t. Continue to grant Stay application of two specific buildings, namely the male and EAC CET rate of 25% or USD 200/MT the female wards in addition to the existing whichever is higher and apply a duty buildings, namely OPD, Mother and Child rate of 25% or USD 250/MT Ward, IPD, Operating Rooms, Staff Houses, whichever is higher for one year on Building Services (Laboratory and Flat-rolled products of iron or non- Radiology) and mortuary. We must tighten alloy steel, of a width of less than 600 our belts and mobilize resources to address mm, clad, plated or coated HS Code the shortage of health facilities in the 7212.30.00; 7212.40.00; and country. 7212.50.00. This measure is intended to protect iron and steel 83. Honourable Speaker, It is proposed to manufacturers in the country; introduce a universal insurance coverage project (Universal Health Care) aimed at u. Continue Stay application of EAC reaching all Tanzanians. It is worth CET rate of 25% or USD 200/MT mentioning that Tanzania has a total of whichever is higher and apply a duty 12,827 million households, out of which rate of 25% or USD 250/MT 20% are estimated to be indigent. The whichever is higher for one year on Government will need more than 149 Iron and steel reinforcement bars and billion shillings in the first year to cover hollow profiles HS Code 7213.10.00; 30% of the 2.628 million indigent 7213.20.00; 7213.99.00; 7214.10.00; households. Allocation of budget will be 7214.20.00; 7214.30.00; 7214.91.00; increased by 10 percent every year so that 7214.99.00; 7215.10.00; 7215.50.00; by 2034/2035 all citizens will be reached. 7215.90.00; 7225.91.00; 7225.92.00; The government continues to improve 7225.99.00; 7306.30.00; 7306.50.00; health services closer to people so that 7306.61.00; 7306.69.00; 7306.90.00. health insurance facility can be effectively This measure is intended to protect used to the benefit of all citizens. iron and steel manufacturers in the country;

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tighten our belts to reduce this challenge v. Continue a stay of application of the and this is a war ahead of us. EAC CET rate of 25% and apply a duty rate of 35% for one year on iii. Health and Universal Health Horticultural products HS Codes Insurance 0603.11.00; 0603.12.00; 0603.13.00; 82. Honourable Speaker, The Health Sector 0603.14.00; 0603.15.00; 0603.19.00; is a very important sector in the well-being 0604.20.00; 0604.90.00; 0701.90.00; of our society and is one of the most 0702.00.00; 0703.10.00; 0703.20.00; important requirement in the human life. 0703.90.00; 0706.10.00; 0706.90.00; Recognizing this, the government of CCM 0710.10.00; 0710.21.00; 0710.22.00; has done a tremendaous job in this sector. 0710.30.00; 0714.10.00; 0714.20.00; However, there is still a great work to be 0804.30.00; 0804.40.00; 0804.50.00; done due to a growing population and the 0805.10.00; 0805.40.00; 0805.50.00; changing health needs in today's 0806.10.00; 0807.11.00; 0807.20.00; generation. The citizens in various parts of 0808,10.00; 0808.30.00; 0910.11.00; the country have put a great deal of efforts 0910.12.00. This measure is intended in finding solutions to the challenges of to protect iron and steel access to health services in their localities. manufacturers in the country; In various areas there are fortified buildings started by the community however, it takes w. Continue to stay application of the long to complete, 5 to 15 years. We also EAC CET rate of 0% and apply a duty have work in progress at various rate of 10% for one year, on construction stages of more than 1,500 monofilament of which any cross- health centers that have been partly sectional dimension exceeds 1mm, developed by the communities around but rods, sticks and profile shapes they could not finish due to budgetary whether or not surface worked but constraints. The Governement has a target not otherwise worked of plastics HS to complete a total of 67 health buildings Code 3916.10.00, 3916.20.00, by Juni, 2021. However, all completed 3916.90.00. These are intermediate modern facilities still require the addition of products and are used to perform

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similar function as of aluminum effected. Moreover, there are many projects profiles (substitute) falling under in the pipeline in Iringa, Kagera, Kigoma, Heading 76.04; Kilimanjaro, Lindi, Mara, Mbeya, Mtwara, Mwanza, Njombe, Rukwa, Ruvuma, x. Continue to grant stay application of Shinyanga, Simiyu, Singida, Songwe, CET rate of 10% on the following Tabora, Tanga and Simiyu regions to be paper and paper products and apply a implemented in 2021/22, but they are not duty rate of 25% HS Code in the budget. Other regions that I did not 4804.11.00; 4804.21.00; 4804.29.00; mention here have been included in the 4804.31.00 and 4804.41.00. This respective Ministry’s budget. measure is intended to protect domestic industry and enhancing 81. Honourable Speaker, The lack of clean competitiveness of domestically and safe water has serious consequences to produced paper and paper products; our society. Some mothers and daughters are raped in search of water. Some y. Continue to grant duty remission at students miss classes and ruin their lives 10% instead of 35% on imported directly in search of water. Moreover, the wheat grain HS Code 1001.99.10 and country spends huge sums of money HS Code 1001.99.90. This measure is treating its citizens for diseases due to lack intended to reduce the cost of of clean and safe water. There are families production for manufacturers of falling apart, due to women spending most wheat flour in the country; of their time in searching for water. There are civil servants who do not report to their z. Continue to grant duty remission at allocated workplaces due to lack of clean 0% instead of 25% on Printed and safe water. Generally, development Aluminum Barrier Laminates (ABL) activities are stalled due to lack of water in HS Code 3920.10.90. This measure is our communities. For example, it is very intended to promote competitiveness expensive to build a modern house by of domestic industries of toothpaste; using water in a bucket. This situation cannot be allowed to continue. We must

67 96 especially in rainy season. In agriculture, aa. Continue to grant duty Remission crops are damaged due to failure to be at 0% instead of 10% on Refined delivered on time to the highways or from Bleached Deodorized (RBD) Palm the highways to various inner destinations Stearin HS Code 1511.90.40. This of the country due to poor state of the measure is intended to promote the roads. This situation cannot be allowed to domestic manufacturers of soaps; persist, we must tighten our belts and resolve to fight against these challenges, bb. Continue to grant stay application this is a war ahead of us. of the EAC CET rate of 25% and apply a duty rate of 25% or USD 1.35/kg ii. Availability of Clean and Safe Urban whichever is higher for one year on and Rural Water safety matches HS Code 3605.00.00. 80. Honourable Speaker, The availability This measure is intended to protect of clean and safe water in urban and rural the domestic manufacturers of safety areas remains a tragedy. Water has no matches; alternative substitute, it is life for all living things. There are still villages that do not cc. Continue to grant stay application have even a single well of clean and safe of EAC CET rate of 25% and instead water. The village communities cannot tap apply rate of 25% or USD 350 per water; they can only access pond water, metric ton whichever is higher on river water, sharing them with animals. nails, tacks, drawing pins, corrugated Tanzania has major and reliable water nails staples HS Code 7317.00.00, sources including Lake Tanganyika, Lake other than those of heading 83.05 and Victoria, Lake Nyasa, Lake Rukwa, Lake similar articles of iron or steel, Chala, Kiwira River, Ruvu, Rufiji and whether or not with heads of other Ruvuma among others. It could be possible materials. The objective is to protect to use large dams such as Kidunda, local producers of these products Ndembela and Farkwa if they would be against imported cheap products; completed. However, no construction in progress despite of the compensation being

95 68 dd. Continue to grant stay application T. Specific Project Areas of EAC CET rate of 25% and apply a i. Rural and Urban Roads. duty rate of 35% for one year on 78. Honourable Speaker, As you may Sausages and similar products HS appreciate, the state of rural roads is very Code 1601.00.00. The objective is to terrible. There are still villages that have no protect local producers of sausages roads at all. Majority of the roads under and similar products; TARURA are in a worse condition. Currently the road network under TARURA ee. Continue to grant stay application is not less than 108,946.2 kms long. These of the EAC CET rate of 25% and apply roads connect various urban and rural a duty rate of 35% for one year on areas and hence can be a catalyst for Chewing gum HS Code 1704.10.00; accelerating the country’s economic Biscuits Heading 19.05; and Other development. However, as of December sugar confectionery (sweets) HS Code 2020, the TARURA road network with 1704.90.00. The objective is to protect tarmac level reached 2,250.69 kilometers, domestic producers of these products; equivalent to only 2.1 per cent, gravel roads 27,809.26 kilometers (25.6 per cent) and ff. Continue to grant stay of application rough roads 78,886.25 kilometers (72.4 per of the EAC CET rate of 25% and apply cent). a duty rate of 35% for one year on Chocolate and other food preparations 79. Honourable Speaker, as you may agree containing cocoa Heading 18.06. The with me, the state of our roads has a objective is to protect domestic serious impact to our society. Noticeably producers of chocolates; some expecting mothers have lost their lives as a result of late attention at health gg. Continue to grant stay of facilities, others gave birth on the way to application of the EAC CET rate of the health facility just because the roads 25% and apply a duty rate of 35% for are not passable. Some pupils and students one year on tomato sauce HS Code lost their lives on the way to schools due to the poor state of the roads and bridges

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x. Licenses for Insurance Companies 2103.20.00. The objective is to protect I propose to alter the current arrangement domestic producers of tomato sauce; that require Insurance companies to apply for annual licenses and instead, the hh. Continue to grant stay of companies with good records of conduct be application of the EAC CET rate of given permanent licences and for 25% and apply a duty rate of 60% for companies which were found to have some one year on Mineral water HS Code repeating irregularities to be granted a 2201.10.00. The objective is to protect three years’ licence while still under close domestic producers of mineral water; monitoring by the Regulator. The objective of the proposal is to remove bureaucracy in ii. Continue to grant stay of application licensing procedures and improve the of the EAC CET rate of 25% and apply business environment. a duty rate of 35% for one year on meat and edible meat offal under xi. Condusive Environment for doing Chapter 2 in order to promote Business domestic processing and value Along with the proposed revenue measures addition of meat. which are aimed to reduce cost to businesses and improve the business jj. Continue to grant stay of application environment, the Government will of EAC CET rate of 10% and apply a introduce one electronic single window duty rate of 25% for one year on which will provide access to investors to Crude vegetable oils of HS Codes process all the permits and licences 1507.10.00, 1580.10.00, 1511.10.00, required for their businesses electronically. 1512.11.00, 1513.11.00, 1514.11.00, The object of this measure is to relieve 1514.91.00, 1515.11.00, 1515.21.00 Investors from lengthy licensing procedures and 1515.30.00. This measure is and improve the business environment. intended to promote domestic production of vegetable oils;

93 70 kk. Continue to grant stay of application of EAC CET rate of 10% or vii. National Environmental Management 25% and apply 35% for one year on Council (NEMC) semi-refined and refined vegetable oils I propose to amend Environmental of HS Codes 1507.90.00, 1508.90.00, Management (Fees and Charges) 1509.90.00, 1510.00.00, 1511.90.10, Regulation, 2019 by reducing the following 1511.90.30, 1511.90.90, 1512.19.00, fees:- 1512.29.00, 1513.19.00, 1513.29.00, a. Fee for destroying expired medicines 1514.19.00, 1514.99.00, 1515.19.00, from shillings 1,000,000 to shillings 1515.20.00, 1515.50.00 and 100,000; and 1515.90.00. This measure is intended b. Annual environmental Fee from to protect and promote the processing 200,000 shillings to 100,000 of vegetable oils in the country using shillings. locally grown seeds and save foreign exchange used in the importation of edible oil; viii. Meat Board of Tanzania I propose to charge Clearance Fee at the ll. Continue to grant stay of application rate of 70,000 shilling per Consignment of EAC CET rate of 0% and apply 10% instead of 1% of FOB. for one year on Gypsum Powder of HS Code 2520.20.00 in order to protect ix. OSHA the gypsum powder producers in the I propose to reduce electrical inspection, country; electrical insulation test and general inspection fee from 590,000 shillings to mm. Continue to grant stay of 150,000 shillings which was charged before application of EAC CET on Cane and after starting the business. This Sugar (Gap Sugar) HS Code measure is intended to promote business 1701.14.90 imported under a permit environment in the country. issued by the Tanzania Sugar Board and apply import duty rate of 35%

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measure is to accord the derivation instead of 100% or 460 USD/MT principle and reduce the list of whichever is higher for one year. This what is so called “the Union measure is intended to cover the gap challenges” as agreed between the during scarcity of sugar production in two parts of the Union. the country; vi. Fire and Rescue Force nn. Continue to grant stay of I propose to amend Fire and Rescue Act, application of CET rate of 35% or USD CAP 427 as follows:- 0.40/Kg whichever is higher and a. Abolish Horticultural farms from apply a duty rate of 35% on Worn paying fire levy; items of clothing, footwear and b. Abolish Fire Compliance Certificate articles HS Code 6309.00.10; fee for Urban and Rural Petrol 6309.00.20 and 6309.00.90 for one Stations. The Certificates will be year. This measure is intended to issued freely after inspection; protect the consumer welfare; c. Abolish Fire Inspection fee on farms/plantations including farm oo. Tanzania together with other EAC House(s) which were paying between partner States to continue grant duty shillings 100,000/= to shillings remission on raw materials and 1,000,000; industrial inputs used to manufacture d. Increase the area used for Trade Fair textiles and footwear. This aims at Events not subject to Fire and promoting textiles and footwear Rescue levy from less than or equal manufacturers in the country; to 2000m as appeared in the previous regulations to less than or pp. Continue to grant duty remission equal to 10,000m; and at 0% on inputs used to manufacture e. Increase the number of boarders in leaf springs HS Code 7228.20.00 for Educational Boarding Schools from one year. This measure is intended to promote domestic production of motor less than or equal to 100 boarders to vehicles leaf springs; Less than or equal to 200 boarders. 72 91

iv. Tanzania Atomic Energy Commission iii. During the East African Community I propose to amend Atomic Energy (Fees Pre-budget consultative meeting, the and Charges) Regulation in order to abolish Ministers for Finance agreed to amend Radioactivity Analysis fee which is charged the East African Community Customs at the rate of 0.2 percent of FoB for food Management Act, 2004 by adopting USD crops exported to countries with no 50 as de minimis value where customs requirement for Radioactivity Analysis duties shall not be collected. Certificate. iv. Valuation of imported printed fabrics v. Immigration Department (Vitenge) to be re-vested in the a. I propose to abolish Student Commissioner General so that the VISA/PASS FEE for higher learning Valuation Principles stipulated in the institution students in Tanzania - East African Community Customs Mozambique students exchange Management Act, 2004 are adhered to. programme (TAMOSE). The Along with this measure, I propose the objective of this measure is to valuation for those who can not justify promote and facilitate exchange their declared values to range between programs; and USD 0.55 to 1 for a meter of Polyester b. About VISA fees paid and collected Kitenge and USD 0.60 to 1 for a meter of in Tanzania Zanzibar, I propose a Cotton Kitenge in line with the Valuation new arrangement that allows one Principles. part of the Union which has collected the VISA fees for non- v. Remove the requirement of 15% citizens visiting Tanzania to retain refundable additional import duty that collections for use in that Part deposit on sugar for industrial use. This of the Union similarly to other measure is intended to promote types of revenues. Therefore, VISA competitiveness and increase liquidity of fees to be collected in Tanzania domestic industries. In addition, the Zanzibar shall be retained there introduction of ETS will be used as a and vice-versa. The objective of this

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i. Ministry of Naturala Resources and mechanism to track company’s Tourism production and verify the use of I propose to reduce TALA License (Tanzania industrial sugar. However, non- Tourism Business License) for Travel compliant traders will be subjected to Agents from USD 2,000 to USD 500 in the previous measure on top of other order to promote tourism industry; existing legal measures.

ii. Ministryof Livestock and Fisheries The Import Duty measures altogether are Introduce Inspection Fee at the rate of expected to increase Government revenue 40,000 shillings per Certificate regardless by shillings 32,626.38 million of nature of the meat instead of the existing rate of 100 shilling per kilogram of beef and E. The Tax Administration Act, CAP 50 shilling per kilogram of mutton/chevon; 438 63. Honourable Speaker, I propose to iii. Worker’s Compesation Fund amend Tax Administration Act, CAP 438 as I propose to make amendments of the follows:- Workers Compensation Fund Act, Cap. 263 by reducing the rate of contribution to the i. To delete section 92A in order to allow Fund applicable to the Private Sector the court of law to collect and account Institutions from 1 percent to 0.6 percent for revenue emanating from fines and of the total gross monthly salary of penalties due to ruling of tax offences by employees. The objective of this measure is the Courts instead of the previous to provide relief to the Private Sector arrangement where the dues were Employers by reducing the burden of their collected by the Tanzania Revenue contributions to the Fund and improve the Authority. The object of this measure is business environment in the country for to facilitate collection and accounting of the existing and upcoming investors. such revenues in the manner other offences’ ruling are implemented;

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ii. To delete Section 70 (2) in order to give iv. The Marine Parks and Reserves Unit the Commissioner General of TRA power I propose to amend Marine Parks and to implement the provision of the Law Reserves (User Fees) Regulations, 2009 so relating to remission of interest and as to review fees and levies imposed on penalties, and enhance efficiency and Marine parks and reserves as shown in in effectiveness in the determination of Annex 6. such applications; and iii. To amend Government Notice No.15 R. Minor Amendments in Tax Laws and (Transfer Pricing Regulation) by deleting Others. a penalty of 100 percent of sales 76. Honourable Speaker, I propose to adjusted for failure to comply with the make minor amendments to various Tax requirements of the law. The objective of Laws and other Laws in order to ensure this measure is to relieve taxpayers with their smooth and effective implementation. the heavy burden of the penalty with a The amendments will be effected through view to improve the business the Finance Bill 2021 and Government environment and promote investment in Notices the country. S. Implementation of the BLUEPRINT F. The Local Government Finance Act, fro Regulatory Reforms to improve CAP 290 Business Environment by amending 64. Honourable Speaker, I propose to Various Fees and Levies. amend Local Government Finance Act CAP 77. Honourable Speaker, the Government 290 as follows: continues to implement BLUEPRINT for i. To provide clarity on circumstances Regulatory Reforms to improve the which a corporate entity liable for service Business Environment which is a levy may not be liable to pay produce continuous process. The proposed cess along the value chain of a product. amendments include the following: - The measure is intended to resolve the

ambiguity on the interpretation of the

current provision; and

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from shillings 50,000 to shillings ii. To reduce Outdoor Advertising fee as 100,000; follows: k. Increase the application fee for a. Illuminated advertisement from certified true copy of the original shillings 18,000 to shillings 13,000; from the records by society from b. Non Iluminated advertisement from shillings 20,000 to shillings 50,000; shillings 15,000 l. Increase the application fee for new to shillings 10,000; certificate of a society- Loss, from c. Wall Sign advertisement from shillings 50,000 to shillings 100,000; shillings 15,000 to shillings 10,000; m. Increase the application fee for d. Electronic Sign advertisement from new certificate - Loss Second time, shillings 20,000 to shillings 15,000; from shillings 50,000 to shillings e. Vehicular advertisement from 200,000 shillings 15,000 to shillings 10,000 n. Increase the Search fee -by society for those advertising products of from shillings 50,000 to shillings other manufacturers/traders; 100,000; and f. Short term advertisement/promotion o. Increase the Search fee -by member per day from shillings 55,000 to of public from shillings 50,000 to shillings 50,000; and shillings 200,000 g. Every poster promotion for first 100 posters for every other bunch of 100 iii. Tanzania Bureau of Standards (TBS): - of posters or part therefof from I further propose to amend the Standard shillings 100,000 to shillings 50,000. (Fees and Charges) Regulation, 2021 to introduce new fees on standards and review All these fees are charged per Square Foot. old fees that were charged by TFDA before The reduction of the fees will lower the role to regulate foods being transformed advertisement costs and hence promote to TBS. The proposed fee is shown in Annex competitiveness in various businesses. 5.

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G. The Property Tax Act, Cap 289 a. Application fee of shillings 100,000 65. Honourable Speaker, I propose for New Certificate of registration of a amendment of the Local Government Society –Damaged; Authorities (Rating) Act to enable the b. Application fee of shillings 50,000 for property rate to be embeded in the correction of misrepresentation electricity bill or prepaid meter. This caused by applicant of a society; measure take into account to that c. Application fee of shillings 50,000 for electricity meters are mostly allocated to change of physical address of postal properties whereas the payer may be the address of a society; owner or occupier of the rateable property. I d. Increase the application fee for subsequently, propose a rate of 1,000/= registration of a society from shillings per month on ordinary buildings shillings 10,000 to shillings 50,000; with one meter; and a rate of 5,000/= e. Increase the annual fee for Religious shillings per month for every storey Society from shillings 20,000 to TZS building or apartments with one meter. 100,000; Payment for property tax will be made on f. Increase the annual fee for Non every purchase of the electricity unit up to Religious Society from shillings the limit of the rates mentioned for the 40,000 to shillings 50,000; respective month. However, the g. Increase the annual fee for Foreign Government will make Regulations to Religious Society from USD 30 to clarify on properties with a shared meter or USD 60; single properties with more than one meter. h. Increase the annual fee for Foreign Non Religious Society from USD 30 H. The Land Rent Act, CAP 113 to USD 60; 66. Honourable Speaker, I propose to i. Increase the application fee for amend Land Rent Act, CAP 113 and its change of name of a society from respective Regulation, 2001 in order to shillings 50,000 to shillings 100,000; reduce premium as follows: j. Increase the application fee for i. Reduce premium rate from 2.5 percent change of Constitution of a society to 0.5 percent for new land occupancy;

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Q. Amendments of Various Fees and ii. Reduce premium rate from 1 percent to Levies imposed by Ministries, 0.5 percent on Regularizing Land. Agencies, Regulatory Authorities, The objective of these measures is to Regions and Independent encourage land occupancy to individuals Departments. and entities to finalise processing the 75. Honourable Speaker, I propose to Certificate of Occupancy. Despite of the amend rates of fees and levies charged by lower rates, the measure is expected to Ministries, Agencies, Regulatory increase Government revenue by 9,000 Authorities, Regions and Independent million shillings due to enhanced voluntary Departments in order to review the rates to compliance in paying land rent. reflect the current values taking into account the inflation and value for money. I. The Stamp Duty Act, Cap 189 The amendments will be reflected in the 67. Honourable Speaker, I propose to Finance Act, 2021 and others through amend the Stamp Duty Act, CAP 189 CAP Government Notices. The proposed 168 with the aim to update the current amendment includes the following: Stamp Duty rates with the current i. Ministry of Agriculture Economy. The ammendments are as I propose to Introduce the following fee for follows: Irrigation Communities: - i. Stamp duty rate from shillings 500 a. Registration Fee of shillings 60,000 to shillings 2,000; for Irrigation Communities; and ii. Stamp duty rate on Memorandum b. Irrigation Service Fee of 5% of and Articles of Association from Seasonal harvest for an area for shillings 5,000 to shillings 10,000; Irrigation Communities. iii. Stamp duty rate on Partnership Instruments whose capital exceeds ii. Ministry of Home Affairs shillings 100,000 but does not I propose to amend the Society Act, CAP exceeding shillings 1,000,000 from 337 by introducing the following; - shillings 2,000 to shillings 5,000; iv. Stamp duty rate on Partnerships whose capital exceeds shillings

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1,000,000 from shillings 5,000 to P. THE NON-CITIZENS (EMPLOYMENT shillings 10,000; and REGULATION) ACT, NO.1 OF 2015 v. Stamp duty rate for instruments of 74. Honourable Speaker, I propose to dissolution of Partnerships from make amendments of the Non-Citizen shillings 1,000 to shillings 10,000. (Employment Regulation Act) No. 1 of 2015 as follows: The measures altogether are expected to i. To impose a penalty of 500,000/= generate Government revenue by shillings shillings per month for every 2,500.89 million. employer with non – citizen employees for failure to submit J. The Vocational, Educational and monthly returns to the Labour Training Act, CAP 82 Commissioner information of 68. Honourable Speaker, I propose to his/her employees including details amend Vocational, Educational and of their salaries. The objective of this Trainining Act, CAP 83 as follows: measure is to enhance voluntary i. Increase the minimum threshold compliance towards that obligation; number of employees for paying ii. To impose a sanction of 12 months’ Skilled Development Levy from 4 imprisonment or a fine of employees to 10 employees. This 10,000,000 million shillings or both measure is intended to create a for failure to submit monthly return friendly business and investment to the Labour Commissioner environment in the country; information of his/her employees including details of their salaries. ii. Exempt religious health institutions The objective of this measure is to from Skilled Development Levy. The enhance voluntary compliance. objective of this measure is to reduce operational cost to these institutions since they are crucial in providing health services in areas

79 84 every three years. This measure aims at where Government has not reached enabling individuals to opt their preferred due to Budget constraints; and personalized registration at low cost as the current rate received a very low response. iii. Introduce a specific requirement to an individual employer engaged in a O. The Road Traffic Act, CAP 168 small-scale mining operation to pay 73. Honourable Speaker, Majority of the levy at the rate of 0.4 percent of Tanzania Youths are employed in the the sale value of the minerals. The transport sector using three-wheelers payment will be made only at the motor cycles (Bajaji) and motor cycles time of selling minerals and known by the name ‘BodaBoda’. The law payment of royalty at buying governing road safety provides a fine of stations or at Mineral and Gem Tanzania shillings 30,000/= to the Houses designated by the Mining operators when convicted for breach of Commission under the Mining Act. road traffic rules. That quantum of fine has The objective of this measure is to resulted into abandoning their motor-cycles create convenience to small scale in Police Stations for failure to pay the fine. miners to make payment of the levy I therefore propose to reduce the road fines considering cash flows. imposed under the Road Traffic Act for offences to motor cycles and three-wheelers K. The Gaming Act, CAP 41. motor cycles from shillings 30,000/= to 69. Honourable Speaker, I propose to shillings 10,000/= for each offence amend Gaming Tax Act, CAP 41 as follows: committed. The objective of this measure is - to align the fines with the ability to pay. i. Reduce Winning Tax on all Sports However, other fines for vehicles shall Betting from 20 percent to 15 continue to apply. percent; ii. Increase Gross Gaming Revenue (GGR) on all Sports Betting from 25 percent to 30 percent. The additional 5 percent will be

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earmarked to sports development ii. To give power to the Minister fund in the country; responsible for Finance to respond iii. Introduce Gaming Tax on Virtual to the Controller and Auditor Games at the rate of 10 percent of General Report in the next Gross Gaming Revenue (GGR); and Parliamentary Session after the CAG iv. Introduce Gaming Tax on Gaming has submitted the report instead of products licensed under pilot study the current practice where all at the rate of 10 percent of Gross reports are tabled on the same Gaming Revenue. Parliamentary Session. This denies The measure is intended to increase the government enough time to Government revenue and promote fairness clarify some issues. within the gaming industry. M. Government Loans Grants and All these measures on Gaming activities are Guarantees Act, CAP 124 expected to increase Government revenue 71. Honourable Speaker, I propose to by shillings 14,925.38 million amend Government Loans, Grants and Guarantees Act, CAP 134 so that L. The Public Audit Act, CAP 148 Government may Guarantee any public 70. Honourable Speaker, I propose to company or institution up to an amount amend the Public Audit Act, 148 as follows: not exceeding the Value of Government i. To give Controller and Auditor Shares to the respective company upon General (CAG) legal powers to audit Cabinet approval. all Parastatals that established under the Companies Act. This N. The Motor Vehicle (Tax Registration measure is intended to enable CAG and Transfer) Act, CAP 124 to legally audit all Parastatals where 72. Honourable Speaker, I propose to the Government is the shareholder.; amend the Motor Vehicle (Tax Registration and and Transfer) Act, CAP 124, by reducing Personalized Plate Number Registration fee from TZS 10,000,000 to 5,000,000 for

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