1
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 FOR 2022/23
14 JUNE 2022 DODOMA
2
I. INTRODUCTION
- Honourable Speaker, I beg to submit to your esteemed
Parliament to receive, debate and approve the Government’s
Revenue and Expenditure Estimates for 2022/23. This
submission is 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. - Honourable Speaker, in addition, 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 Estimates for Ministries,
Independent Departments, Agencies, Regional Secretariats and
Local Government Authorities. Further, the Finance Bill 2022
and the Appropriation Bill 2022 form part of this budget. - Honourable Speaker, the Government budget estimates for
the Financial year 2022/23 have been prepared in line with
various policies, laws 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, The
2030 Agenda for Sustainable Development Goals; Development
Cooperation Framework; and other regional and international
agreements that Tanzania has ratified.
3 - Honourable Speaker, I would like to take this opportunity to
thank the Almighty God for allowing me to stand before your
esteemed House and present the Government Budget for the
year 2022/23. Gratefully, I thank Her Excellency Samia
Suluhu Hassan, President of the United Republic of
Tanzania for continuing having trust in me to lead the
Ministry of Finance and Planning.
II.PERFORMANCE OF REVENUE COLLECTION AND
EXPENDITURE FOR 2021/22
Revenue Collection Performance - Honourable Speaker, in year 2021/22, the Government
projected to collect 37.99 trillion shillings from both internal
and external sources. As of April 2022, a total of 29.84 trillion
shillings has been collected. The breakdown of resources
mobilized up to April 2022 is as follows:
i. Revenue collected by Tanzania Revenue Authority (TRA)
amounted to 17.20 trillion shillings of the annual target
of 21.78 trillion shillings;
ii. Non-tax revenue amounted to 2.03 trillion shillings of the
annual target of 3.05 trillion shillings;
iii. Revenue from Local Government Authorities (LGAs) own
sources amounted to 759.0 billion shillings of the annual
target of 863.9 billion shillings;
iv. Grants and concessional loans received from
Development Partners amounted to 3.93 trillion shillings,
equivalent to 92.0 percent of the annual target of 4.25
trillion shillings;
v. Borrowings from domestic market amounted to 4.12
trillion shillings of the annual target of 4.99 trillion
shillings; and
4
vi. External non-concessional loans amounted to 1.81
trillion shillings of the annual target of 3.05 trillion
shillings.
Expenditure Performance - Honourable Speaker, from July 2021 to April 2022, a total
amount of 29.4 trillion shillings was released for recurrent and
development expenditures. Out of which, 18.79 trillion
shillings was recurrent expenditures. The figure included 6.73
trillion shillings for wages and salaries, as well as 7.27 and
4.79 trillion shillings for respective Government debt services
and other charges. So far, a total amount of 10.61 trillion
shillings equivalent to 74.1 percent of the annual target has
been released for implementation of development projects. The
amount excludes some of the funds that were channeled to
projects which will be accounted for at the end of the current
financial year.
Debt Sustainability Analysis - Honourable Speaker, public debt stock as of April 2022 was
69.44 trillion shillings equivalent to 14.4 percent increase as
compared to 60.72 trillion shillings in April 2021. This amount
includes domestic debt of 22.37 trillion shillings equivalent to
32.2 percent of the debt stock and external public debt was
47.07 trillion shillings, equivalent to 67.8 percent of the debt
stock. The stated amount for external public debt, covering
external non-concessional loans amounting to 14.27 trillion
shillings equivalent to 30.3 percent of the debt stock. This
means that, a large portion of the external public debt is
concessional. - Honourable Speaker, in November 2021, the Government
conducted the Debt Sustainability Analysis (DSA). Such an
5
exercise was done in accordance with the Government Loans,
Guarantees and Grants Act, CAP 134. The conducted DSA
revealed that debt burden indicators are within sustainability
thresholds that are internationally acceptable during short,
medium and long term. Furthermore, the analysis revealed
that: the present value of public debt to GDP is 31.0 percent
which is less than a threshold of 55.0 percent; the present
value of external debt to GDP is 18.8 percent as compared to
the established benchmark of 40.0 percent; and the present
value of external debt to export is 142.4 percent as compared
to the cut-off threshold of 180 percent.
Sovereign Credit Rating - Honourable Speaker, in 2021/22, the Government resumed
the process of the country’s credit rating exercise under the
guidance and advisory services of Citibank. By May 2022, the
Government had finalized the procurement process and
successfully selected two internationally reputable credit
rating agencies. Discussions with respective agencies are
ongoing and preparation of various data to be used in the
rating exercise has commenced and is expected to be
completed in 2022/23. I therefore, take this opportunity to
request all stakeholders in public and private sectors as well
as financial institutions which will be approached for
interviews and information and data collections by experts
from these agencies to accord them with maximum cooperation on the broader interests of the country. The
completion of this exercise is critical in enhancing our ability
to access international capital markets and widen our
development financing options.
6
III. BUDGET FOR THE FINANCIAL YEAR 2022/23 - Honourable Speaker, the budget for 2022/23 is the second
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”. Further, the main theme for the
2022/23 budget as agreed by the East African Community
Partner States is “Accelerating Economic Recovery and
Enhancing Productive Sectors for Improved
Livelihoods”. Accordingly, our priorities will be in the
productive sectors including agriculture, livestock, fisheries,
energy, investment and trade. Moreover, the presented
budget commensurate with the objective of the Government
led by Her Excellency, Samia Suluhu Hassan, the
President of the United Republic of Tanzania and the
Chairperson of CCM to build the economy, reduce
poverty and unemployment especially to youth.
Macro-economic Policy Targets - Honourable Speaker, the estimates of Government budget
for 2022/23 have been prepared based on macroeconomic
assumptions and targets as follows:
(i) Real GDP growth rate of 4.7 percent in 2022 and 5.3
percent by 2023;
(ii)Containing inflation at single digit between an average of
3.0 to 7.0 percent in the medium term;
(iii) Domestic revenue collection is estimated at 14.9
percent of GDP in 2022/23;
(iv) Tax revenue collection is projected at 11.7 percent of
GDP in 2022/23; and
7
(v) Maintaining foreign reserves sufficient to cover for at
least four months (4) of imports of goods and services.
IV. KEY ISSUES FOR THE FINANCIAL YEAR 2022/23 - Honourable Speaker, given the level of integration and
interdependence of global economic and social activities, the
COVID-19 pandemic and the war between Russia and
Ukraine have continued to impact various countries around
the world including Tanzania negatively. In addition to an
already distressed global economy, the war between Russia
and Ukraine has exacerbated the shortage of wheat, edible
oil and barley due to distortion in the production and global
supply chain. According to the World Food Program, Russia
and Ukraine are among the largest producers and exporters
of the same products. - Honourable Speaker, the impact is also experienced in
energy related products, as Russia is ranked the second
largest producer of natural gas and petroleum products in
the world. Further, Ukraine is one of the world’s largest
producers of sunflower oil. Following these effects, it is clear
that the world economy and the life in general will change.
In view of this, Her Excellency Samia Suluhu Hassan,
President of the United Republic of Tanzania and the
Chairperson for CCM, has directed that this year’s budget
should focus on providing relief to people and accelerating
economic recovery. This budget will therefore base on
revenue and expenditure policies, value for money, fight
against corruption and investing in productive sectors
so as to create jobs for youth.
8
Strategies to Increase Revenue for year 2022/23 - Honourable Speaker, I commend the Tanzania Revenue
Authority and other institutions that collect Government
revenue. The Government has made significant progress in
domestic revenue collection whereby as of April 2022, tax
and non-tax revenue including Local Government
Authorities revenue were 19.99 trillion shillings equivalent
to 93.3 percent of the estimates of 21.42 trillion shillings for
the period. Out of the collected amount, tax revenue
amounted to 17.20 trillion shillings equivalent to 94.5
percent of the targeted 18.2 trillion shillings, non-tax
revenue amounted to 2.03 trillion shillings equivalent to
81.2 percent of the targeted 2.5 trillion shillings and revenue
from Local Government own source amounted to 759.0
billion shillings equivalent to 104.8 percent of the targeted
724.1 billion shillings for the period. - Honourable Speaker, there are still corruption practices in
tax collection, especially on large taxes, where some of the
Government revenue tend to go into private pockets. This is
done through over estimation of the tax amount so that
during negotiations, the appropriate tax is paid and the
difference goes into private pockets. Those who refuse to
offer bribes are subjected to unreasonable estimates of taxes
and threatened with bankruptcy. I am closely following on
this and have received several reports of such incidents.
Indeed, this practice is not acceptable and cannot be
tolerated. Let us stop the bargaining on paying taxes. The
tendencies of tax and non-tax revenue collectors asking
businessmen to lower their tax obligations so as receive the
difference of what was supposed to be paid to the
Government are criminal act which undermine our efforts to
strengthen economy. There are also traders who offer
9
customers price options with or without Electronic Fiscal
Devices (EFD) receipt so as to persuade them to avoid paying
relevant amount of Government taxes. This is also, economic
sabotage. I order these actions to stop immediately. - Honourable Speaker, I urge all Tanzanians to pay taxes as
required, report all acts of corruptions, not to be afraid of
threats of revenge, if so, report to the nearest PCCB and/or
relevant authorities. If not addressed, come to my office, I
will refund the fare and reward you for exposing corrupt
practices. You will never find such staff at TRA offices,
neither will they be transferred to other offices, we will
dismiss and prosecute them. We must completely stop
corruption practices in Government revenue and
expenditure. - Honourable Speaker, in addition, the Government intends
to implement the following revenue policy measures;
strengthen use of ICT systems in tax estimation for small
entrepreneurs who are incapable of maintaining records and
preparing their accounts, invest in the use of technology to
facilitate electronic filing of tax returns and timely payment
of taxes; to strengthen the Government electronic Payment
Gateway (GePG) and emphasize on the use of control
numbers and strengthen control systems in Government
Agencies, Public Institutions and Corporations to increase
efficiency and ensure appropriate dividends and
contributions are timely paid. In order to increase private
sector’s contribution to the economy, employment
opportunities and revenue collections at large, the
Government intends to continue improving business
environment and open up more opportunities for the private
sector. Furthermore, the Government plans to continue
10
establishing one stop centers to ensure all requirements for
business services are available in one area.
Strategies for Expenditure Management - Honourable Speaker, expenditure policies for 2022/23 will
focus on minimizing spending. The Government has planned
to conduct an analysis of how best to implement and control
the procurement and use of vehicles. The initiatives are in
accordance with Presidential Circular No. 1 of 1998 on
measures to curb Government spending and also, the Public
Service Circular No. 2 of 2021 regarding the use of public
vehicles considering type and statutory benefits. Some of the
areas with huge expenditure to the Government are:
procurement of vehicles, spare parts, lubricants, fuel and
maintenance. To address this and other related challenges,
the Government will put in place both short and long-term
measures. The short-term measures to be taken are: to
minimize spending on domestic and foreign travels, reduce
procurement costs, reduce delegation sizes for domestic and
foreign meetings and enhance control of fuel consumption of
Government vehicles. I instruct the Paymaster General to
conduct a thorough analysis on the use of fuel depending on
responsibilities, necessity and ranks in public service. - Honourable Speaker, for the medium and long-term
measures, I propose that the Government should transform
from the existing system by lending vehicles to the qualified
Government officials. In that stance, maintenance costs will
be upon themselves, and fuel will be provided in an
appropriate manner. Currently, the Government has more
than 15,742 vehicles, 14,047 motor cycles and 373
machines and spends more than 558,453,134,226.05
shillings annually in purchasing vehicles, fuel, spare parts
11
and maintenance. This arrangement is proposed to exclude
Security and Defence organs, Judiciary, top leaders for
Ministries, Corporations, Agencies, Regions, Districts and
Project Supervisors whereby they won’t exceed five (5) for
each institution. Other officials entitled with motor vehicle
facilities will be provided with loan for motor vehicle, in
doing so, the Government will minimize cost of maintenance,
fuel and spare parts of vehicles. - Honourable Speaker, with this approach, the cost of
maintenance, fuel and spare parts of the Government for
motor vehicles will amount to approximately
50,508,038,843.09 shillings. A saving of more than 500
billion shillings will be realized and allocated to
procurement of essential medicines, providing loans to
students for technical colleges and implementation of
development projects. - Honourable Speaker, Moreover, the Government will
abandon the current transactional procurement practice
which compares open tenders instead of the market prices of
goods and services such a tendency has shown significant
weaknesses whereby the bid prices have always been higher
than those in the wholesale and retail markets. I propose
that, public procurement be strategic sourcing function that
is linked with a prudent functional supply base. In that
sense, I propose we embark on relevant supply chain
management approaches that enable the Government to
utilize its synergies. - Honourable Speaker, the Government will enhance the
public procurement system to ensure value for money
objective is achieved. In doing so, we intend to improve the
12
Tanzania National e-Procurement System (TANePS)
including setting price ceilings for goods and services to be
acquired. The Government will also ensure that, all prices
for cataloged goods and services used are captured in the
TANePS and effectively applied. This will prohibit providers
and other suppliers who inflate prices. - Honourable Speaker, the Government is facing the problem
of price variation of commonly used goods and services. The
current arrangement for such items, leads the Government
to purchase similar goods and services at different prices. To
address this challenge, the Government will instruct
Accounting Officers to ensure Ministries, Departments,
Agencies and Government Institutions procure such goods
and services within the indicated prices. Further, the
Government will negotiate and enter into a framework
agreement with car manufacturers that will enable the
procurement of vehicles at affordable prices as it is for the
international organizations such as UNDP. The aim of the
proposed arrangement is to reduce the costs related to
acquisition of vehicles and spare parts. This exercise will be
conducted by the Ministry of Finance and Planning in
collaboration with the Ministry of Works and Transport. The
savings realized will be allocated to building technical
colleges in districts for our children. - Honourable Speaker, the Government will strengthen the
use of information and communication technology in its
operations in order to curb expenditures. All regional
conference rooms should have ICT facilities for virtual
meetings. This will reduce costs to the Government by
avoiding Regional Commissioners, Heads of Departments,
District Commissioners and District Executive Directors
13
travelling from their respective areas. Regarding this
situation, we want to replace the expression “Government
works on papers” with “Government works on records”. - Honourable Speaker, the Controller and Auditor General’s
(CAG) report has revealed some shortfalls in Government
spending particularly on bulky procurement and
development projects. The Government has followed up and
realized some shortcomings in compliance and financial
audits. Whereas in some circumstances all procedures, rules
as well as audit requirements are adhered to, yet there are
incidents of misuse of public funds. To address these
problems, the Government will review procurement
procedures and ensure value for money is observed. - Honourable Speaker, the Government will review the Public
Procurement Act, 2011 in order to address the loopholes
that provide opportunities for projects to be implemented
without observing value for money. Likewise, the
Government intends to increase the budget for CAG office to
recruit adequate staff, relocate Government staff from other
Government departments and build their capacity in value
for money audits to address this problem. - Honourable Speaker, the Government will continue to
strengthen the Internal Audit Units by providing them with
capacity building programmes and increasing human capital
in diverse fields such as ICT, engineering, quantity
surveying, laboratory technicians, lawyers, and other fields
to get rid of the notion that audit is all about financial audit.
In addition, the Government will amend public financial
regulations to allow audit committees to include the three
external members, one being committee chairperson so as
14
enhance independency and efficiency of audit committees
through proposed Finance Bill of 2022. With these
amendments, the regulation will allow the audit committees
to submit quarterly reports to the Internal Auditor General. - Honourable Speaker, the Government will review the
scheme of service of Internal Auditors. In the same way,
facilitate its participation in bench marking programs from
peer countries. These interventions will ensure the
department executes its mandates efficiently and
independently. Meanwhile, I propose, the office of Internal
Auditor General to be assigned an Independent Vote in order
to strengthen and improve operational performance. - Honourable Speaker, on the other hand there are times
when projects are completed below standard. To address
this, the Government will strengthen the Internal Auditor
General Department to be able to conduct performance audit
instead of just financial audit to minimize loopholes of losing
Government revenue through weak revenue collection
systems. - Honourable Speaker, on public financial management, the
Government will ensure Public Finance Act, Cap 348 is
adhered to. Failure to comply, and respond to CAG and IAG
queries, Accounting Officer of a respective Vote and
responsible officers will be punished according to 2005
Public Finance Regulations. Some of those punishments
include, deducting 5 to 30 percent of salary per month
depending on the magnitude of the mistake; and suggest
their disciplinary authorities to relieve them from their
positions.
15 - Honourable Speaker, on the other hand, the Government
has issued Monitoring and Evaluation Guidelines and is
developing a Monitoring and Evaluation Policy which will be
followed by enacting the law. Her Excellency Samia Suluhu
Hassan, President of the United Republic of Tanzania is
concerned with the weaknesses of our monitoring and
evaluation units. The plan is to increase personnel and
budget for the very units as well as provide measurable
targets. Furthermore, the Government recommends that
from the 2022/23 monitoring and evaluation reports should
be submitted to Task Force to be chaired by the Prime
Minister’s Office. - Honourable Speaker, corrupt practices lead to
substandard implementation of projects as funds allocated
are diverted to the hands of unpatriotic civil servants. Her
Excellency Samia Suluhu Hassan, President of the
United Republic of Tanzania has strongly condemned this
practice. The Government will conduct the performance
audits from this financial year. The Government will neither
stop release nor withhold funds for any council due to
qualified opinion and negligence of some public servants
respectively. The Government will identify, arrest and
prosecute the negligent. - Honourable Speaker, public servants play major role in
national development and have many responsibilities
include: engaging in contracts; procurement;
implementation of Government projects; and collecting
revenues. However, other public servants behave
unethically, a tendency that reduce efficiency of the public
service delivery. I propose all superlative positions in the
16
public service to be on contractual basis. This aims at
improving the efficiency of the public service. - Honourable Speaker, the ongoing practice of continuing to
pay salaries and other related benefits to demoted
Permanent Secretaries, Regional and District
Commissioners, Directors and the like is unnecessarily
costing a lot to the Government. As we are all aware,
currently we have 25 Ministries but there are 200 or more
Permanent Secretaries on the payroll. Similarly, we have 185
Local Government Authorities but the list of DEDs includes
500 persons who are paid the salary related to the position.
In that stance, the Government plans to correct the ongoing
anomaly by paying salaries of demoted officials
commensurate with their current positions. This measure
will relieve the Government from shouldering unnecessary
costs accruing out of such a practice. - Honourable Speaker, the Government recommends the
public commercial entities to ensure that, at all times they
undertake their duties diligently, efficiently and with clear
business focus in order to achieve the value and objectives
in which they were established for. As for the public noncommercial entities, they will be assessed and benchmarked
on their ability to be the catalyst in all facades of the
economy as well as their service value addition to the
respective sectors. Some of the State-Owned Enterprises
(SOEs) have become a burden to the economy by solely
depending on the Government for their total operation. In
developed countries, major sources of revenue are from
public institutions, hence reduce tax burden to citizens.
Thus, I propose the appointment of all CEOs of the SOEs to
be done competitively for the relevant positions. The
17
announcement for filling the respective positions should be
made immediately once the same falls vacant. It should also
apply to the Board of Directors. Only the names of the
successful candidates will be submitted for vetting and shall
be offered performance-based contracts. - Honourable Speaker, I am aware that some proposed
reforms may affect various laws and regulations. Her
Excellency Samia Suluhu Hassan, President of the
United Republic of Tanzania has instructed that no law
shall act as a barrier towards enhancing efficiency. The
Government will propose amendments of such laws based
on President’s directives. I understand that these initiatives
geared towards expenditure control, curbing corruption
practices, negligence and plugging loopholes in procurement
will affect the interests of some individuals and I may be
regarded as an unpopular Finance Minister. Honourable
Speaker, I swear that, I will stand firm to implement those
reforms so as to safeguard public interests. I have been
assigned by Her Excellency the President, to manage the
country’s revenue and expenditure. I reiterate my
commitment in discharging this role and humbly request
all Honourable Members of this Parliament to support
our President with her good intention to lift Tanzanians
out of poverty.
Productive Sectors - Honourable Speaker, with regard to National Bureau of
Statistics report of December 2021, Tanzania population
was estimated at 57 million out of which 34.9 percent
represented youth population (15-35 years) and 2.9 percent
was elderly aged above 64. Notwithstanding the fact that
large percent is youth population, it is quite normal to find
18
an elderly person in the village or a retired person taking
care of the youths. This leads to distribution of having a
large proportion of unemployed work force despite the
investment done in them. Therefore, the Government
policies and plans are now required to address the
unemployment challenges.
Agricultural Sector - Honourable Speaker, regarding investment in the
productive sectors that generate youths’ employment, the
CCM led Government under Her Excellency Samia Suluhu
Hassan, President of the United Republic of Tanzania has
increased the agricultural budget from 294 billion shillings
to 954 billion shillings and will continue to increase the
budget each year. The aim is to achieve more than 10
percent growth for the agricultural sector by 2030 and the
2022/23 budget is a cornerstone towards achieving this
goal. Other goals are ensuring food security and supply to
cater for domestic demand and export, increasing the value
of export of agricultural produce from USD 1.2 billion to
more than USD 5 billion by 2030 to improve the liquidity
ratio indicators for public debt sustainability. The
Government intends to increase sales of horticulture
produce from USD 750 million per annum to USD 2 billion
per annum by 2030. - Honourable Speaker, the CCM led Government under Her
Excellency Samia Suluhu Hassan aims to create more than
3 million jobs for youths and women in the agricultural
sector by 2025 in order to reduce the unemployment. This
will be done through expanding the irrigation area to
8,500,000 hectares equivalent to 50 percent of the total area
cultivated in the country by 2030. The Government will
19
scale-up small-scale irrigation schemes across the country
by constructing irrigation infrastructure including the
construction of dams for harvesting rainwater and use
available water bodies like Lake Victoria, Tanganyika,
Nyasa and large rivers like Malagarasi, Ruvuma, Rufiji,
Mara, Pangani and Ruvu. With the arable land, water and
workforce, Tanzania intends to increase agricultural
productivity and addressing shortages of wheat and edible
oil intensified by the Russia and Ukraine war. - Honourable Speaker, the Government aims to increase the
number of large-scale farms from 110 in 2020 to 10,000 in
2030 with focus on commercializing palms and sunflowers
farming. The Government is encouraging the transformation
from small to large scale farming. I urge farmers from
Kigoma, Tabora, Katavi, Coastal, Geita and Kagera regions
to amalgamate farms to become plantation at the same time
everyone owns plot to enable construction of infrastructure.
Meanwhile, the Government intends to either reduce or
relocate the few livestock at Kongwa ranch in order to
transform about 30,000 acres into Sunflower plantation and
construct the largest edible oil processing factory in East
Africa. The Government aims at constructing a big dam at
Mtanana so that the whole valley will be for sunflower
outgrowers. - Honourable Speaker, The Government will continue
ensuring availability of raw materials in the value-added
industries of agricultural products by 100 percent by 2030,
and increase agricultural production through irrigation from
10 to 50 percent. The oranges, pineapples, sunflower oil sold
along road sides may seem to be abundant but in reality, are
not sufficient to feed industries’ raw materials requirements.
20
This is a missed opportunity for our youths and economy at
large.
Livestock Sector - Honourable Speaker, the number of livestock is estimated
to: 33.9 million cattle; 25.6 million goats; 8.8 million sheep;
92.8 million chickens; and 3.2 million pigs. However, the
contribution of this sector to foreign earnings is low, and its
impact in transforming the livelihood of farmers is still
minimal. Despite that number of livestock, our abattoirs in
Rukwa, Longido, Kibaha, and Mwanza experiencing shortage
of raw materials and at the same there are youth
unemployment. There is mismatch of goals between the
farmers and the factory owner. The goals of most farmers are
non-commercial; they breed to increase numbers of livestock
and no interest with the factory. Honourable Speaker, my
relatives Sukuma tribe when cattle have a fractured leg, they
will treat it, even in a family festival, they won’t slaughter,
will go to buy from the market. All cattle have names like,
Chitamakuwi, Maagulya, Nshoshawiye and other family
names of aunt, uncle, or grandmother not for slaughter
while factory owner sets up the meat and dairy processing
industries based on livestock statistics provided by the
region. - Honourable Speaker, the Government is embarking on the
transformation of Livestock and Fisheries sectors by
increasing the budget of Ministry of Livestock and Fisheries
by 100 billion shillings from 168.3 billion shillings to 268.3
billion shillings. Out of the increased amount, 40 billion
shillings is for the Livestock Sector and 60 billion shillings
for the Fisheries Sector. Out of this amount 92.1 billion
shillings is for the Livestock Sector and 176.2 billion
21
shillings is for the Fisheries Sector. The Government will
continue to improve this sector with a view of modernizing
and increasing productivity. In 2022/23, the Government
will strengthen the Sao Hill, Kitulo and Mabuki breeding
farms by providing the prenatal cows and equipment
including 3 tractors and their equipment; will buy 366 male
breeds for breeding herds; and will produce 3,500 in calf
heifers and distribute them to farmers. The Government
planned to increase the production of animal feed, as of now
production has increased from 1.2 million tons in 2020/21
to 1.38 million tons in 2021/22. - Honourable Speaker, the CCM led Government under the
leadership of Her Excellency Samia Suluhu Hassan,
President of the United Republic of Tanzania, intends to
establish eight (8) youth incubation centers starting with
1,000 beneficiaries, who will work to fatten cattle and selling
to the meat processing industries with insufficient raw
materials. Moreover, the Government has planned to use
machines to drill and construct watering trough for smallscale farmers. In addition, the Government intends to
prepare regulations for collection and protection of revenue
for each district with more than 100 livestock groups for
infrastructure development. Honourable Speaker, the Sixth
Phase Government, continues to encourage more investment
in meat processing industries for the domestic and foreign
markets, especially in the Middle East. Currently, there are
24 abattoirs and meat processing industries that meet the
standards for meat exportation, of which five have started
exporting. The number of dairy processing industries in the
country has increased from 99 in 2020/21 (which processed
75.9 million litres) to 105 industries in 2021/22 (processed
77.6 million litres) which is an increase of 2.3 percent.
22
Further, the leather goods manufacturing industry has the
capacity to produce 2.9 million pairs of shoes annually.
Fisheries Sector - Honourable Speaker, in 2021, the fishery sector grew by
2.5 percent and contributed 1.8 percent to GDP. In addition,
the industry provides employment to approximately 4.5
million Tanzanians in the entire value chain where direct
employment for fishermen is 194,804 and aquaculture
growers are 31,998. The Government plans to: start
construction of a fishing port in the Kilwa Masoko (Lindi);
procure two fishing vessels in the blue economy zone;
procure Fish Aggregate Devices (FADs); procure and
distribute 250 modern fiber-type boats for fishing
cooperatives; continue with the revival of the Tanzania
Fisheries Corporation-TAFICO; capacity building to
professionals specialized in fisheries; strengthen fisheries
education and training Agency (FETA); strengthen the
Tanzania Fisheries Research Institute (TAFIRI); complete the
construction of the Igabiro, Mbamba Bay and Chifunfu fish
catchment sites and build six (6) fish markets in various
strategic areas; rehabilitate the Bukoba fisheries security
and management center; procure two boats for marine
tourism; construction and rehabilitation of aquaculture
facilities; and intensify monitoring and evaluation activities
of fisheries sector so as to ensure the project is implemented
as planned.
Financial Sector - Honourable Speaker, the financial sector has continued to
provide loans to businesses in different sectors of the
economy. Despite these efforts, there are some borrowers
who do not honour their obligations, an act that undermines
23
the performance of the sector and the economy. As of March
2022, Non- performing loans were 8.12 percent which is
beyond the threshold set by the Bank of Tanzania. This is
due to lending practices that do not comply with regulations
and involves lack of professionalism and untrustworthy of
some bank employees. I urge authorities and law
enforcement agencies to strengthen their supervisory role in
the financial sector. - Honourable Speaker, I commend women for compliance in
honouring their debt obligations as highlighted in different
reports. Most of the family loans raised by women, are
usually used for intended purposes and repaid as planned
unlike loans raised by men. Let us build a borrowing culture
that adheres to regulations so as to strengthen the financial
sector and boost the economy. In some incidents, some
untrustworthy bank employees collude with brokers who
craves for customers’ collaterals and expedite auction of
collaterals even when more than 90 percent of the loan has
been repaid. I plea to the authorities and law enforcement
agencies to closely monitor auctions.
Energy Sector - Honourable Speaker, achievements in the energy sector
include continued implementation of: Julius Nyerere
Hydropower Project – 2,115 MW whereby up to April 2022
implementation has reached 60.22 percent; projects of
distributing electricity to rural areas; Pipeline construction
project of East African Crude Oil Pipeline (EACOP) from
Hoima, Uganda to Tanga, Tanzania; and a project to process
and distribute natural gas. In addition, the Government has
continued to encourage local contents in the operations of
24
the processing plants, transportation and distribution of
natural gas. - Honourable Speaker, the Government will continue to
implement various projects for the generation, transmission
and distribution of electricity. For 2022/23, the Government
led by Her Excellency Samia Suluhu Hassan, President of
the United Republic of Tanzania and Chairperson of the
Ruling Party (CCM) will continue with the National Grid
Stabilization Project with a view of strengthening access to
reliable electricity in the country as well as implementing
rural energy projects through the Rural Energy Agency
(REA). Other projects to be implemented include Ruhudji
(358 MW), Kinyerezi I – Extension (185 MW), Rusumo (80
MW) and Kikonge (300 MW). In addition, the Government
will continue to build ring circuits to prevent the loss of
electricity by enabling alternatives passage when
infrastructure encounter fault. The power line projects that
will continue to be implemented include 400 kV Rufiji –
Chalinze – Dodoma and Chalinze – Kinyerezi; 400 kV Singida
- Arusha – Namanga; 400 kV North – West Grid Extension
(Iringa – Mbeya – Sumbawanga – Mpanda – Kigoma –
Nyakanazi); as well as building electrical infrastructure for
Standard Gauge Railway (SGR).
- Honourable Speaker, the Government continued to connect
Kigoma and Katavi Region with the National grid. The
Nyakanazi-Kakonko-Kasulu-Kigoma kV 33 project is ongoing
under Sinotech contractor, the Nyakanazi-Kigoma kV 400
project, the contractor is on site and the project cost is
amounting to USD 168 million, and the funds for this
project already secured. In addition, regarding the
Malagarasi generation project 49.5 MW, the fund for the
25
implementation of this has been secured. The Government
will continue with the implementation of two large energy
projects which will connect Sumbawanga-Katavi-Kigoma
region and Tabora-Katavi-Kigoma region. Honourable
Speaker, for the Katavi lot the contractor is on site and
started building of substation at Ipole Sikonge and Inyonga
with a contract sum amounting to 124 billion shillings. I
want to assure the citizen of those regions that in the near
future you will be connected to National Grid as it has been
presented by Hon Minister for Energy. The Member of
Parliament representing these regions who came to my office
should now majestically be proud of, the promise of Her
Excellency Samia Suluhu Hassan President of the United
Republic of Tanzania to those regions, after this budget
session you will go back to your constituencies as heroes
and majestically.
Works and Transport Sector - Honourable Speaker, as of April 2022, construction of the
Central Corridor Standard Gauge Railway (SGR) for the Dar
es Salaam – Morogoro lot (300 km) has reached 96.54
percent and the Morogoro – Makutupora lot (422 km) 85.02
percent. Further, the Government has signed a contract for
the construction of SGR for the third lot from Makutupora –
Tabora (km 368) worth 4.4 trillion shillings. The Government
is in the final stages of signing a contract of SGR
construction of Tabora – Isaka for 163 km worth USD 695.7
million (1.62 trillion shillings). Furthermore, the
Government has started the process of procuring a
contractor for the Tabora – Kigoma 514 km worth USD
2.1 billion and the lot of Uvinza – Malagarasi – Msongati
– Gitega – Kindu (DRC).
26 - Honourable Speaker, the Government has completed the
construction of a total of 216.26 km of trunk road and 34.8
km of regional roads to bitumen standards. In addition,
307.41 km of regional roads were rehabilitated at gravel
level. Similarly, the Government has started the
construction of the Outer Ring Road (112.3 km) in Dodoma
City as well as the continuation of the eight-lane expansion
of the Kimara-Kibaha Road (19.2 km). Likewise, the
Government has completed the construction of bridges:
Tanzanite (Dar es Salaam), Kiyegeya (Morogoro), Ruhuhu
(Ruvuma) and continue with construction of bridges of J.P
Magufuli (Kigongo – Busisi, Mwanza) where progress is at
40.2 percent, Kitengule – Kagera (90 percent) and Wami –
Coastal Region (72.9). The Government is also rehabilitating
Songea, Mtwara, Iringa, Musoma and Songwe airports. - Honourable Speaker, the CCM led Government under Her
Excellency Samia Suluhu Hassan, President of the
United Republic of Tanzania will continue to emphasize on
the construction of roads to open up economic opportunities
and those connecting Tanzania with neighboring countries
in the form of Engineering, Procurement, Construction and
Financing (EPC + F) including: (1) Kidatu – Ifakara – Lupilo –
Malinyi – Londo – Lumecha (Songea) Roads, (499 km); (2)
Handeni – Kibirashi – Kibaya – Kwa Mtoro – Singida
(460Km); (3) Karatu – Mbulu – Haydom – Sibiti River –
Lalago – Maswa (Simiyu) (389 km); (4) Kibaha – Mlandizi –
Chalinze – Morogoro Expressway (158 km); and (5) Igawa –
Songwe – Tunduma (Expressway) (218.0 km). All these roads
qualify to operate through road tolls, including Tanzanite
bridge. In addition, the Government will complete
ongoing construction of road networks that connect
Regions, including Tabora – Kigoma and Nyakanazi –
27
Kigoma and prioritise in construction of roads networks
important for the economy including Makongorosi – Itigi
– Mokiwa, Mafinga – Mtwango – Nyololo – Mgololo,
Kahama – Nyang’wale – Geita and others. - Honourable Speaker, the Sixth Phase Government will
continue to improve ports to facilitate economic activities,
water transport and deep-sea fishing. In achieving this, the
Government continued with construction, expansion and
rehabilitation of port infrastructure in the Indian Ocean
zone. The projects include: completion of the construction of
a special car berth (RoRo berth), Container service yard and
upgrade of berth number 1-7 at the Port of Dar es Salaam;
completion of feasibility study and signing of a contract with
China Harbor Engineering Co. Ltd for the construction of
Fisheries port at Kilwa Masoko – Lindi; completion of
construction of one 300-meter berth; proceed with the
construction of fences and hard floors in an area of 75,807
square meters in Mtwara Port; and increasing the depth of
berth from 4 to 13 meters as well as the installation of
navigation equipment at Tanga Port. In addition, the
Government is in discussions with investors who will invest
in the Bagamoyo Special Investment Zone especially in the
three core projects which are: Modern Seaport Component;
Special Zone Section for Logistics Park and Port side
Industrial City. - Honourable Speaker, during the 2021/22, the Government
constructed slipway for building and rehabilitation of Ships
in Mwanza Port and also rehabilitation of New Ships (MV
Butiama Hapa Kazi Tu and New Victoria Hapa Kazi Tu). In
addition to that, the Government continued building New
Ship (MV Mwanza Hapa Kazi Tu) with capacity to carry
28
1,200 passengers and 400 tons of cargo whereby completion
stage is 66 percent. Honourable Speaker, in 2022/23, the
Government will build new ships: (1) in Lake Victoria; (2) in
Lake Tanganyika; and (1) in Indian Ocean. In addition, the
Government will continue with construction of MV Mwanza
in Lake Victoria, and rehabilitation of MV Umoja; MT
Sangara; MV Liemba-Ukerewe, MT Nyangumi; and one
Express boat (Sea Worrios) in Lake Tanganyika.
Furthermore, the Government will conduct a thorough
inspection of MV Mwongozo ship in Lake Tanganyika and
will continue installing ICT systems in Great Lakes Centers
(Victoria, Tanganyika and Nyasa). - Honourable Speaker, the Government has continued to
strengthen Air Tanzania whereby in 2021/22 the
Government has received three (3) aircrafts. Out of these,
two (2) aircrafts are Airbus A220 300 and one Dash 8 Q400.
Similarly, the Government has made initial payments for the
purchase of five (5) new aircrafts of which two (2) are Boeing
737-9, one (1) De Havilland Dash 8-Q400, one (1) Boeing
787-8 Dreamliner, and one (1) Boeing 767-300F cargo
aircraft. - Honourable Speaker, the improvement of airports
infrastructure in various parts of the country is ongoing. In
the implementation of that, the Government has signed a
contract for the construction of Msalato International Airport
in the first phase which involves the construction of a
runway and a passenger terminal. In addition, the
Government has completed expansion of the runway and the
aircraft control system at Dodoma Airport; as well as
architecture and preparations for the construction of a
passenger terminal at Mwanza Airport. The airports under
29
construction and rehabilitation stages are: Songea (96
percent); Mtwara (89 percent); Iringa (44.65 percent);
Songwe (95 percent); and Musoma (10 percent). Similarly,
the Government will continue with the construction and
expansion of Shinyanga, Kigoma, Tabora and Sumbawanga
airports at a cost of 50 million Euros equivalent to 136.85
billion shillings.
Education, Science and Technology - Honourable Speaker, the Government has completed
construction of 15,000 classrooms in secondary and satellite
schools and 50 dormitories for students with special needs.
This has enabled all 907,803 students who passed the
standard seven examination in 2021 to be enrolled in Form
One in January 2022. Similarly, the Government has
completed construction of 560 block structures of
classrooms in secondary schools using funds obtained from
mobile phones money transaction fees amounting to 7.0
billion shillings. In addition, the Government has provided
loans worth 569 billion shillings to 177,777 higher
education students. - Honourable Speaker, in 2022/23, the Government will
implement the Higher Education for Economic
Transformation (HEET) Project worth USD 425 million. The
project entails construction of universities infrastructures in
existing universities and new colleges for Lindi, Kagera,
Rukwa, Katavi and Manyara regions. The Project will also
finance the completion of the Institute of Marine Science
Zanzibar and construction of a new ICT center in Dodoma. - Honourable Speaker, the Government has continued to
finance the fee free primary education program where up to
30
April 2022, a total of 244.5 billion shillings was disbursed.
Her Excellency Samia Suluhu Hassan, President of the
United Republic of Tanzania and chairperson of CCM has
been deeply concerned by school drop-outs for various
reasons including household income poverty, teenage
pregnancies, poor education awareness in some
communities, absenteeism and those who do not continue
based on the prevailing rules including examination
performance. To deal with drop-out of children from poor
families, the Government recommends setting up a
special window amounting to 8 billion shillings through
TASAF which will assist children from poor families. - Honourable Speaker, to address teenage pregnancies the
Government will continue to build dormitories for girls. In
order to provide opportunities for children who do not
proceed with high school and higher learning education, the
Government will continue to strengthen vocational education
with the aim of building their capacities for self-employment
or employment. So far, we have 77 Districts with Vocational
Education Training Authority (VETA) out of 138 Districts
across the country, and we have 25 Regions with VETA out
of 26 Regions. Songwe Region still has no VETA college. I
recommend approving 100 billion shillings for the
construction of technical colleges in Songwe Region and 36
Districts with no technical colleges in order for all 138
Districts to have technical colleges. Honourable Members of
Parliament “Huyo ndiyo MAMA SAMIA”. - Honourable Speaker; currently, form five and six students
are 90,825 and 56,880 respectively with financial needs
amounting to 10,339,350,000 shillings. As directed by Her
Excellency President, I recommend fee free education
31
for form five and six students. In this regard, fee free
education will be from primary to high level secondary
schools. The Government is planning on how to
accommodate technical colleges in this programme once the
economic situation allows. “Nani kama Mama?” “Nani
kama CCM?” “CCM ni No 1”.
Health Sector - Honourable Speaker; in 2021/22, the Government has
constructed, expanded and rehabilitated health
infrastructures including: 66 Intensive Care Units (ICUs);
100 Emergency Medical Departments (EMDs); 150 staff
houses; 7 Regional Referral Hospitals and 1 Specialized
hospital (Mirembe); and 304 health centers for
Comprehensive Emergency Obstetric and Neonatal Care
(CEmONC) to improve maternal and child care. In addition,
the Government has released 23.32 billion shillings to
Local Government Authorities in order to complete the
construction of block structures for 564 dispensaries. Also,
construction of 99 hospitals is ongoing and construction of
28 new hospitals has commenced. Further, the Government
has constructed 234 health facilities using revenue from
mobile phone money transaction fees amounting to 86.0
billion shillings. - Honourable Speaker, the Government has continued to
strengthen health services by improving diagnostic services
whereby, as of April 2022, there were a total of 11 CT scan
machines, 7 MRI machines and 105 digital X – rays
machines in operation in various hospitals. Out of these, 42
digital X – rays machines are located in national, regional
and specialized hospitals and regional referrals and 63
machines are located in different health facilities under PO –
32
RALG. The Government has procured the following
diagnostic equipment: 4 MRI; 31 CT— Scan; 130 Digital X –
rays; 1 mini angio suite and 7 Echo Cardiography. In
addition, the Government is continuing with installation of
oxygen generating plants whereby a total of 13 plants have
been installed in various hospitals thus bringing health care
services closer to citizen. - Honourable Speaker, the CCM Government led by Her
Excellency Samia Suluhu Hassan, President of the
United Republic of Tanzania and Chairperson of CCM will
continue to improve the health sector by building,
rehabilitating and expanding health care infrastructure.
These include: construction of Special Maternal and Child
Hospital in Dodoma; commence the construction of Western
Region Referral Hospital; complete the construction of 5
Regional Referral Hospitals in the new regions of: Katavi,
Geita, Njombe, Songwe and Simiyu; and complete the
expansion of eight (8) Regional Referral Hospitals. In
addition, the Government will continue to improve
specialized and super specialized services in National and
Regional Hospitals by improving infrastructure as well as
equipping Jakaya Kikwete Cardiac Institute (JKCI), Chato,
Mtwara, KCMC, Bugando and Mbeya Regional Referral
Hospitals.
Water Sector - Honourable Speaker, the President has facilitated the
completion of 303 rural water projects and 40 urban
projects including major projects in Misungwi, Orkesumet,
Chalinze – Mboga and Longido; an increase in access to
water services in the country from 72.3 percent in rural
areas and 86 percent in urban areas in 2020/21 to 74.5
33
percent in rural areas and 86.5 in urban areas in 2021/22;
improved water resources management by continuing to
identify, demarcate and conserve 178 water sources as well
as preparing water conservation plans for all water intake in
the country. - Honourable Speaker, the Government has also completed
procurement process of 25 sets of drilling rigs which will be
distributed to all regions except Dar es Salaam; five (5) sets
of dam construction machinery that will be deployed in each
region; and four (4) sets of groundwater research equipment.
These drilling rigs are expected to be delivered by the end of
June, 2022. In addition, on 6th June 2022, the Government
signed contracts for water supply projects in 28 towns to be
financed with a loan worth USD 500 million from Exim Bank
- India. Of this amount, USD 35 million will be used for
implementation of water projects in Zanzibar.
Natural Resources and Tourism Sector
- Honourable Speaker, in April 2022, Her Excellency Samia
Suluhu Hassan, the President of the United Republic of
Tanzania, launched the film named The Royal Tour which
aims at showing opportunities available in Tanzania in the
tourism as well as investment opportunities in other sectors.
Through this Parliament, I would like to invite the diaspora
and investors from all over the world to visit Tanzania for
tourism as well as investing in various opportunities, as we
aim to promote private sector investment. We are committed
to transforming Tanzania to be a HUB and MODEL of
strategic and attractive investments destination. Following
the launching of Royal Tour, already statistics indicate that
there has been an overbooking in the most of the tourist
destinations. I would like to call upon all investors and
34
inform you that the doors are open for investment in
Tanzania, you are all welcome to invest for mutual
benefits.
Minerals Sector - Honourable Speaker, under the Sixth Phase regime, the
contribution of the Mining Sector to GDP has increased from
6.7 percent in 2020 to 7.2 percent in 2021. The sector ranks
fifth among all economic sectors in the country. In addition,
the growth rate of mining activities in the country has been
steadily increasing whereby in 2021 the Mining Sector grew
by 9.6 percent compared to 6.7 percent in 2020 and thus,
ranked third in that period. This trend has been attributed
to an increase in investment in large, medium and smallscale mining. The Government’s goal for the Mining Sector is
to contribute 10 percent of GDP by 2025 as outlined in the
National Development Vision 2025. - Honourable Speaker, in enabling more participation of
small – scale miners in the mining activities, the Government
urges Banking and Financial Institutions in the country to
provide loans to the small-scale miners, with the aim of
enabling them to grow and increase productivity. Currently,
some banks including NMB, NBC, CRDB and KCB have
extended loans amounting to 36 billion shillings to smallscale miners. These are among the efforts that the
Government has made to ensure small-scale miners grow to
medium and ultimately large scale hence increase their
contributions to GDP. Likewise, the same Government’s
efforts have enabled the small-scale miners revenue
contribution to increase to 40 percent. Thus, the
Government will continue to ensure small-scale miners are
35
empowered to continue contributing more to the country’s
economy. - Honourable Speaker, the Government through the
Geological Survey of Tanzania (GST) has managed to achieve
a geological extension of 96 percent nationwide, a
geophysical extension of Low Resolution with 100 percent
and High Resolution by 16 percent and 25 percent of
geochemistry extension nationwide. Through Geological
Survey of Tanzania, the Government has identified new
areas with mineral resources and advertise them with the
aim of attracting investment. Some of the resources
discovered in the previous year include: Gold (MalinyiMorogoro and Liwale-Lindi); helium gas (Masware-Babati
and Lake Natron-Arusha); Lime and Feldspar (KitetoManyara) and Lime (Mkalama-Singida). - Honourable Speaker, the existing major mines such as
Geita Gold Mining Limited (GGML), Bulyanhulu North Mara,
and the new Kabanga Nickel and Nyanzaga mines resulted
from previous geological information obtained from GST.
Consequently, the Government will continue to facilitate
GST to conduct further high-resolution geophysical surveys
with a target of 65 percent from the current 16 percent. The
benefits to be gained include: Possibility of establishing new
mines that will contribute to GDP through the Mining
Sector; cross-sectoral growth that mostly rely on the Mining
Sector such as Agriculture, Construction and Water;
Establishment of industries that rely on the availability of
mineral raw materials such as cement, fertilizer and marble
industries; and increased awareness of the country’s geology
and thus stimulate exploration and mining activities that
will contribute to the National Development.
36 - Honourable Speaker, the Government aims at providing Tax
Identification Number (TIN) for every Tanzanian aged 18
years and above. All Tanzanians earning income are
required to pay tax. The National Identity Authority (NIDA)
procedures require for every person aged 18 years and above
to register under NIDA. The Government proposes all
citizens registered with NIDA who are around 19 million
throughout the country to be provided with TIN that will be
used in every transaction involving buying and selling in the
country. The tax estimates for every person with TIN will be
provided and respective payment be made online. - Honourable Speaker, in some of the regions, TRA offices are
at regional Headquarter thus, ‘bodaboda’ drivers spend
much time to obtain their driving licenses. For Instance,
Bodaboda drivers travel from Mererani to Babati which is
the Headquarter of Manyara region, from Kakonko to
Kigoma, from border between Lindi, Mtwara and Ruvuma to
obtain their license at Morogoro while all required details are
available through their NIDA. The Government proposes
NIDA Identity Card information to be used in processing
driving licenses therefore, after completion of driving
trainings, TRA and Police Forces should harmonize
information and send the driving license through the driver’s
mobile phone. Further, we urge all citizens with TIN to
submit their annual returns to TRA. This process will
provide incentive among Tanzanians to pay taxes as a result
increase revenue particularly from livestock, agriculture,
fishing and other sectors that do not contribute to
Government revenue but have major contribution to the
National Income.
37
The Parliament - Honourable Speaker the Government recognizes the
significant roles of the Parliament and will continue to
ensure that the Parliament is facilitated financially and
capacitated to increase efficiency in the implementation of
its core legislative, advisory and oversight functions. In that
regard, the 2022/23 budget for the Parliament has been
increased by 5 billion shillings for other charges to facilitate
implementation of its responsibilities including capacity
building to the Members of Parliament (MPs) for them to
oversee the Government operations. The Government has
also increased the budget for the Constituency Development
Fund to enable the MPs to participate in their
Constituencies. The Government will ensure the funds are
timely disbursed and will continue to provide necessary
information to the Parliament as required including the
Internal Auditor General (IAG) quarterly reports and
monitoring and evaluation reports to assist MPs on their
project field visits as I proposed earlier.
Good Governance - Honourable Speaker, the Government will continue to
strengthen administration of justice and its delivery systems
by enabling the Judiciary to expedite case disposal and thus
reduce the backlog of litigation. Moreover, the Government
has continued to improve infrastructure in justice delivery
through construction and rehabilitation of court
infrastructure including, strengthening the use of ICT
especially the online conference, e-filing systems and
Electronic Case Management System. The interventions aim
at improving efficiency of the judiciary to modernize control
to enable all citizens to promptly access rights and fair
justice.
38 - Honourable Speaker, in 2022/23, the Government will
continue to finance implementation of various activities in
the Office of the Attorney General focusing on dispense of
justice to citizens and combating corruption. The activities
to be implemented include the construction of Integrated
Justice Centers and law interpretation whereby 5.7 billion
shillings have been increased. Further, the Government has
increased 20 billion shillings to the budget of the Public
Prosecutor’s Office to finance witnesses on criminal offences
and the construction of Integrated Justice Centers (IJCs).
Defence and Security - Honourable Speaker, in 2021/22, the Government through
its defence and security organs has continued to maintain
national peace and security which led to Tanzanians carry
out various social and economic activities fearlessly.
Further, the Government has continued to strengthen
defence and security cooperation with various countries and
believe that security organs will continue to fulfil their duties
of protecting borders with a patriotic spirit, thus
strengthening peaceful and stable environment for attracting
trade and investment. In 2022/23, the Government will
continue to strengthen and build capacities of the defence
and security organs so as to effectuate its responsibilities
professionally and patriotically. - Honourable Speaker, in line with the ongoing residential
address exercise, the Government will intensify household
level security to combat all forms of crime. The procedure
includes ensuring that village and ward officials are involved
in the rental of residential houses so that each rental house
uses Village/Street Government contract stamped with the
39
respective office. Similarly, real estate transactions must
involve officials from the relevant Government even if the
parties have private lawyers as the Village/Street
Government officials must be aware of ongoing issues in
their areas.
Engagement with Development Partners - Honourable Speaker, the efforts made by Her Excellency
President Samia Suluhu Hassan to strengthen cooperation
with Development Partners and different Nations in the
World have facilitated the signing of loans and grant
agreements to finance various projects including: Land
tenure Improvement; improving Primary Education; and a
Judicial modernization to bring Judicial services closer to
the citizens. In addition, some of the agreements to be
signed include: Tanzania Transport Integration Project
(TanTIP) which aims at upgrading and integrating regional
highways and regional airports; and the Tanzania Statistics
Master Plan (TSMP II). - Honourable Speaker, the Government is finalizing
negotiations for a concessional loan from the World Bank
worth USD 500 million, equivalent to 1.17 trillion shillings.
Further, the Government is at the final stage of securing a
concessional loan of 2.57 trillion shillings, equivalent to USD
1.1 billion through the Extended Credit Facility (ECF) under
the International Monetary Fund (IMF). The loan will be
disbursed in seven tranches over a period of 40 months from
July 2022 to July 2025. The funds will be used to
strengthen productive sectors, social services, improving the
business and investment environment as well as uplifting
the most affected sectors by the Russia-Ukraine war.
40
Public Servants and Retirees welfare - Honourable Speaker, what is the reward for hardworking
and patriotic public servants? What are the rewards of the
dedicated service and the integrity of those servants? who
should recognize and value their efforts? The voices were
heard by Her Excellency who is attentive, humble and
caring and finally approved an increase of a minimum wage
by 23.3 percent for Public Servants. Her Excellency,
Samia Suluhu Hassan, the President of the United
Republic of Tanzania and the Chairperson of CCM has
continued to care and value for Public Servants welfare by
endorsing increment in local subsistence allowance rates.
Whoever believes in goodness and caring, lives and
practices it. In this regard, Her Excellency, Madam
President is a good living example. - Honourable Speaker, the Government will continue to: pay
arrears; promote qualified staff; improve working
environment and welfare based on country economic
performance without affecting other services to the society
and development projects. In ensuring that the patriotic
retirees who served the nation tirelessly benefit from their
contributions made to the social security funds, the
Government has increased the lumpsum pension to 33
percent from 25 percent as proposed in 2018. - Honourable Speaker. The Government will continue with
various strategies for paying social security funds debts. In
2021/22 the Government issued non-cash special bonds
worth 2.18 trillion shillings in order to pay Public Service
Social Security Fund (PSSSF) emanated from unremitted
contributions for pre-1999 retirees. In 2022/23, the
Government will continue to verify and pay the debts of
41
social security funds. The aim is to ensure public servants
are paid lumpsum benefits and start paying monthly
pension immediately after retirement.
Business Environment for Small Entrepreneurs and Private
Sector - Honourable Speaker, the Government has continued to
identify, allocate, supervise, protect and enable small scale
entrepreneurs (Machingas) as one of the key drivers of the
economic growth. The Government is doing all these efforts
to implement Her Excellency’s intention to improve
business environment. Further, the Government will
continue to identify and link them with Financial
Institutions to access affordable loans, and will continue to
allocate areas and construct enabling infrastructure for
doing business. The President has pledged 10 million
Shillings for each region for strengthening Machinga’s
leadership including construction of their offices. Further, I
recommend the allocation of 10 percent of LGAs own source
as follow: 5 percent for infrastructure and Machinga’s
markets, 2 percent for youth, 2 percent for women and 1
percent for disabled. Furthermore, the Government has
allocated 45 billion shillings for infrastructure and capital
provision to the Machingas where by each region needs to
have 1 billion shillings revolving fund for the Machingas
based on the procedures put in place. - Honourable Speaker, in formalizing the informal sector to
take advantage of the formality, the Government has
planned to: create conducive legal and regulatory
environment in business registration and operation; ensure
business registration is completed within a day provided all
requirements are met by applicants; increasing access to
42
credit for the formal business; and increase availability of
services such as business infrastructure, training,
technology and markets. Further, the Government has
planned to increase incubation centers and special economic
zones. - Honourable Speaker, in recognition of the Private Sector
contribution through various investment, the Government
has continued to improve business environment and
investment climate in the country through implementation
of the Blueprint for Regulatory Reforms to Improvement of
Business Environment, to enable private sector participation
in economic growth. In 2021/22, the Government in
collaboration with Private Sector discussed challenges facing
private sector in doing business in various international
markets including Kenya, whereas 42 out of 64 non-tariff
barriers were discussed and made resolutions which
enhanced business between Tanzania and Kenya. Further,
in improving the business environment and investment
climate the Government has proposed to amend various
laws in 18 areas through the 2022/23 Finance Act, as I will
explain later. - Honourable Speaker, the Government has continued to
coordinate and emphasize citizens’ participation in strategic
projects and investment in the country. As a result, 72,395
direct and indirect employments were created in 2021.
Further, strategic projects resulted to signing of 2,019 local
sub-contracts in provision of services such as catering,
security, building materials including cement, iron bars
gravel and sand. Other sub-contracts were transport and
logistics, insurance and oil companies. Similarly, the
Government has put in place strategies to ensure that
43
investment contracts are aligned with tax laws in order to
address project implementation challenges resulting from
contradiction between contracts and tax laws.
Public Private Partnership (PPP) - Honourable Speaker, in the implementation of PPP projects,
five (5) projects are at the advanced stage of procuring
prospective partners. I would like to inform your Esteemed
Parliament that the Bus Rapid Transit Project (Phase I) has
procured a partner and the next step is to engage with the
respective partner. This initiative will increase efficiency in
operations and service delivery in Bus Rapid Transit Project.
This will be a flagship project which has undergone all the
required steps in line with the PPP Act, Cap. 103.
Acquisition of partners in PPP projects will bring relief to the
Government budget thus enabling increased financial
resources in other areas, to bring development to
Tanzanians. The Government will continue to evaluate and
provide more enabling environment for the private sector to
participate in PPP projects in order to improve provision of
public goods and social services. - Honourable Speaker, in order to ensure an enabling
business environment and investment climate, the
Government will continue to: implement the Blueprint for
Regulatory Reforms to Improve the Business Environment
by strengthening transport and energy infrastructure;
ensure the sustainability of macroeconomic indicators; and
harmonize various levies and fees charged by the Ministries
and Regulatory Authorities with the aim of reducing and
simplifying its payment as well as eliminating nuisance
levies and fees. Further, in 2022/23, the Government will
continue to amend tax rates, levies and fees charged under
44
respective laws. The reforms aim to accelerate economic
growth, especially in the industrial, investment and trade
sectors as well as increasing employment, exports, revenues
and foreign reserves. Furthermore, to avoid accumulation of
VAT refund and reduce the burden of arrears due to delays
in repayment to the private sector, the Government will start
verifying VAT refunds electronically from 2022/23.
Population and Housing Census - Honourable Speaker, financing of Population and Housing
Census which is expected to take place on 23rd August,
2022 is another priority in 2022/23 budget. To facilitate
this important exercise, the Government has allocated a
total of 400.9 billion shillings. I would like to take this
opportunity through your Esteemed Parliament to encourage
all citizens to cooperate on that day considering that it is
everyone’s responsibility. Our participation will enable the
Government, Non-Governmental Organizations and the
Private Sector to obtain accurate data that will be the basis
for developing, implementing and evaluating various
development policies and plans in our country.
Swahili Language - Honourable Speaker, Swahili is the national and official
language, the second language in rural areas, it’s the first
language for majority of the current generation, the primary
language and the language of Parliament. When I was a
Minister for Constitutional and Legal Affairs, I presented a
Bill for Swahili to be official Court language and it is
currently used for judgment. Further, it is among official
language in East African Community (EAC), Southern
African Development Community (SADC) and the African
Union (AU). In the efforts of promoting Swahili, United
45
Nations Educational, Scientific and Cultural Organization
(UNESCO) has recognized the Swahili language and is
celebrated on 7th July every year. If Swahili is the official
language, why then most job interviews are conducted in
English even for Civil Servants including extension officers
who serve ordinary Tanzanians? I recommend that all
interviews be conducted in Swahili and all conference halls
and government offices be equipped with foreign languages
translation devices and interpreters to honor our national
language.
Sports Sector - Honourable Speaker, the Government will restore the
national lottery through the Private Sector. Along with that,
the Government through the Gaming Board, TRA and the
Private Sector will start running the lottery through EFD
receipts to motivate citizens to have habit of claiming
receipts when purchasing goods. In addition, the
Government will use a portion not exceeding two (2) percent
of the Corporate Social Responsibility to promote sports in
the country whereby companies will be allowed to recognize
that amount in taxable income. I would like to take this
opportunity to reassure Tanzanians’ that we will put
artificial turf in five stadiums starting with Mwanza, Arusha,
Tanga, Dodoma and Mbeya to promote the sports sector in
our country. In 2022/23, the tax exemption granted on
artificial turf and its associated equipment will be extended
to District Councils. I use this opportunity to congratulate
Serengeti Girls and Tembo Warriors Teams who have
qualified to represent the country in the World Cup
tournaments. I wish all the best to our National Team, Taifa
Stars which is still in the race of qualifying for Africans Cup
of Nations (AfCON).
46
Blue Economy Strategy - Honourable Speaker, the blue economy is not a new
phenomenon as various economic activities have been taking
place in Tanzania. Investment opportunities available in
those areas include: fishing; fish farming; salt mining; oil
and gas exploration; seaweed farming; beach tourism;
transport and logistics; environmental conservation; and
irrigation farming. Despite many opportunities in this area,
its contribution to the economy is still low compared to its
potential. This is due to ineffective system to guide
harvesting and sustainable use of the resources for the
benefit of current and future generations. Honourable
Speaker, the existing sectors in this area have not been well
coordinated and lack adequate stakeholder participation. If
the opportunities were fully utilized, they could stimulate
economic growth, be a source of food and employment,
become a base for socio-economic development, industrial
development, poverty reduction and increase Government
revenue. - Honourable Speaker, following the importance of this
sector, the Government of Tanzania is finalizing the
preparation of the Blue Economy Strategy to recognize the
sector’s contribution to the economy as part of the
implementation of Section 27 of the CCM Election Manifesto - This strategy is prepared in a participatory approach
involving stakeholders from the public sector, private sector,
Development Partners, and the Community at large.
Honourable Speaker, the private sector is expected to play a
key role in funding the strategy as most of the activities
carried out in the blue economy sector are commercial. The
Government will focus on creating an enabling environment
to attract private sector investment. Further, the
47
Government will finance areas where the private sector has
less interests including enabling infrastructure, setting up a
policy, and legal and institutional frameworks for the
management and sustainable use of those resources for the
benefit of present and future generations.
The Strategy for Reducing Cost of Living and Strengthening
the Productive Sectors - Honourable Speaker, the Government will take deliberate
measures to reduce cost of living caused by the effects of
Russia-Ukraine war. Measures to be taken includes:
Regarding price hikes in petroleum products: The
Government has reduced several levies that are factored in
the computation of CAP prices for petroleum products.
Further, the Government paid 100 billion shillings as
subsidy to contain rising fuel price in the country. Other
measures will include: to continue providing fuel subsidies;
allow suppliers who are capable of importing fuel at
affordable prices; and establish Fuel Price Stabilization Fund
after price stability in the world market, National Strategic
Petroleum Reserve and Single Receiving Terminal (SRT). - Honourable Speaker, regarding price increase for edible
oils, the Government will impose strategic fiscal measures to
contain rising prices in the importation of crude edible oils
to local producers so as to increase production, reduce
prices and increase employment. Further, Agricultural Seed
Agency (ASA) produced and distributed to farmers 2,000
tons of sunflower seeds worth 5.8 billion shillings in form of
subsidies in order to increase edible oils production and on
average, 400,000 tons of sunflower seeds will be produced
which in turn will produce 100,000 tons of edible oils.
Furthermore, to increase palm oil production, ASA produced
48
121,292 pre-geminated palm seeds. These measures
altogether expect to increase availability of edible oils and
minimizing surge in prices. I propose a zero-rated ValueAdded Tax to locally produced edible oils. - Honourable Speaker, regarding subsidies to fertilizers, we
all recognize the importance of agriculture in our economy
and livelihood of our people. The sector is faced with a
number of challenges including climate change, low
productivity and impacts resulting from the Russia-Ukraine
war. In order to increase agricultural production and
productivity and relieve farmers, the Government will
subsidize agricultural input including fertilizers, farming
equipment, pesticides, quality seeds and enhancing
irrigation farming. The subsidies will increase fertilizers
production to suffice domestic market, whereby preference
will be given to local fertilizer industries. I propose a zerorated VAT for locally produced fertilizer and this rate is
strictly for fertilizer producers. I further propose to
reduce royalty charges on minerals used in energy and
fertilizers production in industries. - Honourable Speaker, the Government is taking these
measures to reduce cost of living and provide relief to
Tanzanians. I urge business community not to take
advantage of prevailing crisis at the expense of the citizens
in order to earn more profit, as subsidies are meant for
citizens and not companies. In addition, we urge all citizens
to adjust their lifestyle during periods of economic
challenges. The subsidies put in place aim at relieving the
citizens, through reducing cost of production in proportion
to the subsidies provided. I instruct all authorities in
charge of the service provision to uphold peoples’ rights
49
so that the commitment by President, Her Excellency
Samia Suluhu Hassan to provide relief to the citizen can
be realized.
V. REFORMS ON TAX, FEE AND CHARGES AND OTHER
REVENUE MEASURES
100.Honourable Speaker, since 2019/20, the world has
experienced economic challenges following the outbreak of
COVID-19 pandemic, followed by Ukraine and Russia war in
February 2022. The economic challenges have disrupted
product supply chains in the World raising inflation
resulting into increased cost of living and decrease in the
rate of economic growth. The already felt adverse economic
effects from this situation include the decline in agricultural
and industrial production due to scarcity of raw materials
and inputs such as wheat, fertilizer and crude edible oil. The
proposed tax measures for the year 2022/23 aim at
“accelerating economy recovery and enhancing productive
sectors for improved livelihood”.
101.Honourable Speaker, it is from the aforesaid background
that, I propose to make amendments to the tax structure
that will include changes on the tax rates, levies and fees
imposed under various laws and also propose to amend
administrative procedures on Government tax
administration. These amendments are intended, among
other things, to maintain stability and predictability in the
tax system. In addition, reforms are expected to enhance
economic growth particularly in strategic sectors such as
agriculture, livestock and fisheries, electricity and power
infrastructure, transport and transportation, education and
health sector so as to increase production and employment.
In addition, these measures are aimed at improving revenue
50
collection and management so as to minimize revenue
leakages. The proposed amendments will cover the
followings laws: –
(a) The Value Added Tax Act, CAP 148;
(b) The Income Tax Act, CAP 332
(c) The Excise Duty Act, CAP 147;
(d) The Tax Administration Act, CAP 438;
(e) Local Government Finance Act, CAP 290;
(f) The Workers Compensation Fund Act, CAP 263;
(g) The Mining Act, CAP 123;
(h) The Cashew nut Industry Act, No. 18;
(i) The Export Levy Act CAP, 196;
(j) The National Payment Systems Act CAP, 437;
(k) The Insurance Act, 394;
(l) The Foreign Vehicle Transit Charges Act, CAP 84;
(m) The Bank of Tanzania Act, CAP197,
(n) East African Community Customs Management Act,
2004;
(o) Implementation of the BLUEPRINT for Regulatory
Reforms to improve Business Environment by
amending various fees and levies;
(p) Minor amendments in tax laws and other laws.
(a) The Value Added Tax Act, CAP 148
102.Honourable Speaker, I propose to make amendments in the
Value Added Tax Act, CAP 148 as follows: –
i. Exempt Value Added Tax on standing trees. The measure is
intended to stimulate growth of the Forest Sector for
employment creation and ensure sustainable management
of forest resources. This measure is expected to directly
reduce the Government revenue by shillings 8,814 million.
However, the expected future revenue due to increase in
51
processing of forest products is shillings 16,125 million
making a net increase of shillings 7,311 million,
attributable to growth in production and forest products
value chain;
ii. Exempt Value Added Tax on inputs for the local
manufacture of gas cylinder with HS Code 7229.90.00,
3810.90.00, 3401.19.00, 7904.00.00, 4016.93.00,
8481.10.00, and 8309.90.90. This measure is intended to
create a level playing field of domestic manufactured gas
cylinder with the imported ones which are also exempted.
However, the exemption will be granted after signing
Performance Agreement with the Government for control of
abuse;
iii. Amend the Value Added Tax Act so as to recognise
equivalent financing arrangement similar to conventional
borrowing in order to enhance financial inclusion and
accessibility of financial services. The objective of the
measure is to treat financial products equally;
iv. Zero rate Value Added Tax on double refined edible oil
manufactured locally for one year in order to provide relief
to consumers especially in this period of global recession;
v. Zero rate Value Added Tax on fertilizer manufactured locally
for one year. This measure is intended to provide relief to
farmers especially in this period of global recession. The
rate will be applicable only at ex-factory sales by
manufacturers;
vi. Grant the Minister responsible for Finance powers to
exempt Value Added Tax on strategic investors after
approval by National Investment Steering Committee (NISC)
as indicated in section 20 (8) of the Investment Act CAP 38
52
and subsequently the Cabinet. This measure is intended to
attract investment in the country and align the provisions of
the Value Added Tax Act and Investment Act for better
implementation of Government undertakings;
vii. Amend Section 11 (10) of the Value Added Tax Act to
accommodate capital goods falling under HS Code 87.16
and HS Code 8701.20.90 in the list of capital goods that
qualify for deferment. This measure is intended to reduce
investment costs and stimulate industrial development in
the country;
viii. Exempt Value Added Tax on sensor arrays and chameleon
sensor reader HS Code 9026.10.00; Wetting Front Detectors
HS Code 9031.80.00, electronic conductivity meter HS Code
9027.80.00, and Nitrate test strips HS Code 9027.90.00.
These equipment are used for soil testing. The measure is
intended to promote research and development in the
agriculture sector for sustainable growth and improved
productivity. The exemption will be granted upon approval
of the Ministry responsible for Agriculture. This measure is
expected to reduce Government revenue by shillings 2,995
million but with multiple effects to the agricultural value
chain;
ix. Exempt Value Added Tax on Agro-net HS Code 56.08. This
measure is intended to reduce acquisition cost of Agro-net,
to support the growth of Agriculture Sector, ensure high
productivity, good yield and improve livelihoods.
x. Exempt Value Added Tax on moisture meter HS Code
9003.18.00; rain gauge for weather stations HS Code
9023.00.90; pH meter HS Code 38220090; tissue culture
equipment HS Code 8419.89.60; and tensiometers HS Code
9031.80.00. This measure is intended to improve weather
53
forecasting, to inform proper planning and reduce risks
associated with uncertainty of climate and soil conditions.
The exemption will be granted upon approval of the Ministry
responsible for Agriculture. This measure is expected to
reduce Government revenue by shillings 1,634.52 million.
However, implementation of this measure will have great
impact on farmers in making informed decisions.
xi. Exempt Value Added Tax on refrigerated trucks HS Code
8704.21.90, 8704.22.90, 8704.23.90, 8704.31.90,
8704.32.90, 8704.90.90 and Cold rooms for perishable
agricultural products under HS Code 9406.10.10 and
9406.9010. This measure is intended to enhance the growth
of Agricultural Sector, increase exports as well as reduce
post-harvest losses. The exemption will be granted on nonconvertible refrigerated trucks and cold rooms upon
approval of the Ministry responsible for Agriculture or
Livestock & Fisheries. This measure is expected to reduce
Government revenue by shillings 3,744.47 million, but the
measure will in the medium term enhance revenue
collections;
xii. Exempt Value Added Tax on raw materials under HS Code
2528.00.00; 2710.99.00; and 3505.20.00 and machineries
under Chapter 84 and 85 of the East African Community
Common External Tariff solely and directly used in the
manufacturing of fertilisers by an approved manufacturer.
Exemption will be granted upon approval of the Minister
responsible for Agriculture. This measure is intended to
promote growth of Local industries manufacturing
Fertilizers and attract investment in the country. This
measure is expected to reduce Government revenue by
shillings 139 million;
54
xiii. Exempt Value Added Tax on unprocessed green vanilla pods
HS Code 0905.10.00 for equity purpose as treatment of
other unprocessed agricultural products that are exempted
from Value Added Tax. This measure focuses on attracting
processing of vanilla in the country and thus increase
employment and foreign exchange. Locally grown vanilla
does not satisfy the factory capacity and export demands.
This measure is expected to reduce Government revenue by
shillings 38 million in short term; but in the long run, it has
multiplier effects to the economy;
xiv. Exempt Value Added Tax on locally manufactured Sisal
twine. This measure is intended to promote growth of sisal
twine production and job creation locally;
xv. Exempt Value Added Tax on Ultra High Temperature (UHT)
milk and yoghurt. The measure is intended to enable
domestic milk processors to compete in the Regional and
international market and create more employment for
improved livelihood. This measure is expected to reduce
Government revenue by shillings 480 million but with great
impact on enhancing processing domestically for value
addition and employment creation;
xvi. Exempt VAT on dairy packaging materials HS Code
3923.30.00, 4819.10.00, 4819.20.00, 4819.20.90 (Boxes,
bottles and plastic packaging satchels). This measure is
intended to provide relief to the dairy industry in the
country and enable local producers to compete in the
Regional and international markets. This measure is
expected to reduce Government revenue by shillings 1,197
million but will enhance local production and improve
community welfare;
55
xvii. Exempt Value Added Tax on Automatic Turning Table for
the Lessor Machines (Ear tag supporting table) HS Code
8207.30.00; Ear tag HS Code 3926.90.90 (Male and
Female); Ear tag Applicators HS Code 8456.90.00; and
Lessor beam Machines HS Code 9402.90.90. This measure
is intended to enhance identification, registration and
traceability of livestock in the country. This measure is
expected to reduce Government revenue by shillings 794
million;
xviii. Exempt Value Added Tax on stunning box under HS Code
8438.50.00 and Skinning & dehiding pulling machines
under HS Code 8453.10.00. This measure will improve the
quality of hides and skins as well as better quality of meat
for domestic consumption and exports. The measure will
also ensure availability of sufficient and sustainable raw
materials for local industries. Exemption will be granted
upon approval of the Minister responsible for Livestock and
Fisheries to minimise abuse of the exemption. This measure
is expected to reduce Government revenue by shillings
331.95 million but it is of great impact on value addition;
xix. Exempt Value Added Tax on Pasture Seeds (pasture grass
seeds) under HS Code 1209.25.00; pasture legumes seeds
under HS Code 1209.21.00; pasture multiple tree seeds and
pasture cuttings, and rhizomes and stolons 1209.29.00.
This measure is intended to ensure sufficient availability of
pasture seeds and promote the growth of the Sector;
xx. Amend Item 18 Part I to the VAT Exemption Schedule to
incorporate exemption on machines and tools solely and
directly used by the military and armed forces. The
exemption will be granted upon approval of the goods by the
Minister responsible for defence and security. This measure
56
is intended to reduce acquisition costs in strengthening
improve defence and security systems;
xxi. Exempt Value Added Tax on meteorological equipment and
instruments imported by Tanzania Meteorological Agency
(TMA). The measure is intended to promote modern weather
forecasting services for proper planning and national
security;
xxii. Exempt Value Added Tax on float for fishing net under HS
Code 3926.09.10, fishing hooks under HS Code 9507.20.00
and fishing lines under HS Code 9507.90.00 and
9507.30.00. This measure is intended to enhance
production of fisheries for improvement of food security and
increase Government revenue;
xxiii. Amend the Value Added Tax Act CAP, 148 to accommodate
taxation of the Digital Services without imposing obligation
under the Income Tax Act, CAP 332. Tanzania Revenue
Authority shall establish a simplified registration process to
accommodate digital economy operators who have no
presence in Tanzania. This measure is intended to keep
pace with rapid growth in the digital economy. This
measure is expected to increase Government revenue by
shillings 34,240 million;
xxiv. Abolish Value Added Tax exemption on smart phones with
HS Code 8517.12.00, Tablets with HS Code 8471.30.00 or
8517.12.00 and Modems with HS Code 8517.62.00 or
8517.69.00 as the sought exemption didn’t lead to
reduction of prices to final consumers rather benefited
traders. This measure is expected to increase Government
revenue by shillings 33,705 million; and
57
xxv. Abolish Value Added Tax exemption on Supply of air charter
services. This measure is expected to increase Government
revenue by shillings 36,545 million.
The Value Added Tax measures altogether are expected to increase
Government revenue by shillings 87,523 million.
(b) The Income Tax Act, CAP 332;
103.Honourable Speaker, I propose to make amendments to the
Income Tax Act, CAP 332 as follows: –
i. Amend Subparagraph 3 paragraph 2 of the First Schedule
of Income Tax Act, CAP 332 to introduce a rate of 3.5
percent for taxpayers with turnover exceeding 11,000,000
million but does not exceeding 100,000,000 million in a
year. This measure is intended to increase transparency,
simplify tax assessment and enhance voluntary compliance.
Further to that, I propose to improve TRA systems to enable
payments of taxes through mobile wallets. This measure is
expected to increase Government revenue by shillings
60,413.37 million;
ii. Amend the Income Tax Act, Cap 332 to recognise alternative
financing as approved by the Bank of Tanzania to be the
same as conventional borrowing in order to enhance
financial inclusion and access to finance. The measure is
intended to promote growth of these financial products and
hence economic activities;
iii. Grant the Minister responsible for Finance powers to waive
income tax for strategic investors after approval by NISC, as
indicated under section 20(8) of the Investment Act, and as
subsequently approved by the Cabinet. This measure is
intended to attract investment in the country and align the
58
provisions of the Income Tax and Investment Acts for better
implementation of business undertakings;
iv. Abolish exemption to withhold income tax on individuals
and particularly on rentals paid for residential houses,
apartments and commercial premises. This measure is
intended to enable tenants to collect rental tax and remit to
the Government. Further to that, the Commissioner General
of the Tanzania Revenue Authority will enter into Agency
Memorandum of Understanding with President’s Office
Region Administration and Local Government (PO-RALG) on
the administration and collection of this tax on behalf;
v. Amend the Income Tax Act, CAP 332 to exempt Capital
Gain Tax on any transactions involved on the entry into
force and implementation of Agreements involving the
transfer or surrender to the Joint Venture Company of any
project or the authorisation, issue, distribution or transfer
to the Government of the Free Carried Interest shares. This
measure is intended to ensure timely transfer of mineral
rights and information to the Joint Venture Company and
transfer of Free Carried Interest to the Government;
vi. Exempt Capital Gain Tax (CGT) on equity shares freely
surrendered to the Government through the Treasury
Registrar. This measure is intended to resolve the existing
challenges and ensure timely transfer of shares.
vii. Exempt withholding tax on Coupon for Corporate and
Municipal Bond. This measure is in line with Alternative
Financing Strategy aimed at raising alternative financing for
implementation of Development Projects. Adopting the
measure will increase investment products in the market;
59
viii. Reduce Withholding Tax on film industry from 15 percent to
10 percent. This measure is intended to support the growth
of film industry, enhance knowledge transfer for
employment creation and improved livelihood;
ix. Introduce Digital Service Tax at the rate of 2 percent on the
turnover of the non-resident service providers. This
measure is intended to expand tax base and uphold equity
principles of taxation. This measure is expected to increase
Government revenue by shillings 4,889.35 million;
x. Introduce final Withholding Tax at a rate of 2 percent of
payments made to Small Scale Miners. The measure is
intended to introduce special regime of taxation to small
scale miners due to challenges encountered in collecting tax
in these Sectors. This measure is expected to increase
Government revenue by shillings 37,290.40 million;
xi. Introduce income tax of 3,500,000 shilling on each truck
and passenger buses per year. This measure is intended to
increase Government revenue, predictability of the tax
regime, and enhance transparency in tax assessment. This
measure is expected to increase Government revenue by
shillings 141,052 million; and
xii. Introduce an advance income tax at the rate of 20 shilling
per litre for retailers of petroleum products. The tax will be
collected from retailers by importers of respective product
and be remitted to the Government. This measure is
intended to simplify the payment of income tax by petrol
stations and reduce operation cost. This measure is
expected to increase Government revenue by shillings
59,820 million.
60
The Income Tax measures altogether are expected to increase
Government revenue by shillings 102,593 million.
(c) The Excise (Management and Tariff) Act, CAP 147
104.Honourable Speaker, the Excise Tax (Management and
Tariff) Act, CAP 147 Section 124(2), provides for annual
adjustments of the specific excise duty rates of non
petroleum products indexed to cater for inflation and other
key macroeconomic indicators. However, due to the current
economic conditions stated earlier, I propose not to amend
the specific excise duty rates for all non-petroleum products.
This measure takes into account the inflationary trend in
the country and the Government’s intention to build an
industrial economy, thereby encouraging manufacturing
sector, protecting domestic industries and ultimately
enhancing employment and increase the sector’s
contribution to GDP.
105.Honourable Speaker, I propose to amend the Excise Tax
(Management and Tariff) Act, to undertake the following: –
i. Reduce license fee from shilling 500,000/= to 300,000/= for
manufacturers and importers of excisable goods. This
measure is intended to reduce cost to the manufacturers of
excisable goods, to support economic growth and recovery
of the Sector after COVID 19 effects and on-going economic
consequences of the Russian-Ukraine conflict. This
measure is expected to reduce Government revenue by
shillings 77.4 million;
ii. Exempt excise duty on plastic sleeves puneet, plastic
cryovac bags, modified atmosphere packaging – MAP bags,
plastic sleeves, perforated bags and poly packaging bags HS
61
3923.29.00, Cling film HS 3921.12.90, Plastic liners HS
3902.90.00 for Horticultural export. This measure is
intended to provide relief to farmers and promote export of
horticultural products. This measure is expected to reduce
Government revenue by shillings 653.12 million;
iii. Impose excise duty at the rate of shilling 500 per kilogram
on locally manufactured sugar confectionery and shilling
700 per KG on imported sugar confectionery with HS Code
HS Code 1806.31, 1806.31,1806.31 (chocolate); 1905.31
(biscuits) and 1704 (chewing gum). Differentiated rate for
domestic and imported sugar confectionery has been
proposed in order to protect domestic industries. This
measure is expected to increase Government revenue by
shillings 34,453.87 million; and
iv. Impose excise duty at the rate of five percent on Lead-acid,
of a kind used for starting piston engines HS 8507.10. This
measure is intended to reduce environmental effects caused
by consumption of lead acid batteries. This measure is
expected to increase Government revenue by shillings
1,864.85 million.
The Excise Duty measures on non-petroleum products altogether
are expected to increase Government revenue by shilling 50,292
million.
(d) The Tax Administration Act, CAP 438
106.Honourable Speaker, I propose to amend the Tax
Administration Act, CAP 438 to reinstate power of the
Minister responsible for Finance and Planning to remit
interest or penalty after being advised by the Commissioner
General of Tanzania Revenue Authority. This measure is
intended to resolve the existing challenges and simplify the
62
process of accessing remission. The Minister responsible for
Finance and Planning will issue Regulations as to the
procedures of accessing the remission.
(e) The Local Government Finance Act, CAP 290;
107.Honourable Speaker, I propose to amend the Local
Government Finance Act, CAP 290 as follows:
i. To distribute 10 percent of the revenue collected by Local
Governments as follows: 5 percent to improvement of the
entrepreneur’s infrastructures, 2 percent to youth loans, 2
percent to women and 1 percent to people with disabilities.
This measure is intended to spell the efforts of the
Government in availing small entrepreneurs with
infrastructure to ensure that they have conducive business
environment;
ii. Further to that, Councils shall assess the revenue potential
before entering into agreement with third party collection
agencies to ensure that the amount collected
commensurates with the potential of the source. Along with
that, I direct that all revenue collected through Point of Sale
(POS) be deposited to the bank within a period not
exceeding seven days from the date of collection. This
measure is intended to ensure that the funds collected by
the Councils are fully accounted;
iii. Exempt crop cess on seeds. This measure is intended to
provide relief to farmers and enhance productivity;
iv. Reduce forest produce cess from 5 to 3 percent. This
measure is intended to provide relief to forestry traders and
support growth of the Forestry Sector.
63
v. Amend Section 16(7) of the Local Government Finance Act
to indicate that corporate entities paying service levy in one
Council is liable to pay produce cess in another Council
from which it sources agricultural or other produce. This
measure is intended to make sure that every Council
benefits from economic activity taking place in their area of
jurisdiction so as to be able to serve the community;
vi. Amend Section 16 of the Local Government Finance Act to
grant Minister responsible for Local Government power to
issue Regulations as to sharing of moneys collected as
service levy from an entity/person among Local Government
Authorities. The clause will assist the Minister to provide
guidance on distribution of the collected service levy as
deemed fit.
(f)The Workers Compensation Fund Act, CAP 263
108.Honourable Speaker, I propose to amend the Workers
Compensation Fund Act, CAP 263 to reduce the Workers
Compensation Fund contribution rate from 0.6% to
0.5%.This measure is intended to bring equity in the
contribution between Private and Public Sector employees.
(g) The Mining Act, CAP 123
109.Honourable Speaker, I propose to amend the Mining Act,
CAP 123 as follows:
i. Reduce the rate of royalty from 3 to 1 percent on coal used
as energy raw materials in factories. This measure is
intended to reduce production cost, attract investment and
increase employment; and
64
ii. Reduce the rate of royalty from 6 to 4 percent on gold
minerals to be sold to the refinery centres. This measure is
intended to support growth of the Mining Sector and ensure
that refineries perform to the intended capacity. Adopting
the measure will also create employment and increase
Government revenue;
(h) The Cashewnut Industry Act, No. 18
110.Honourable Speaker, I propose to amend the The
Cashewnut Industry Act, No. 18 so that revenue from the
export levy from raw cashew nuts is divided as follows: 50
percent to the Ministry of Agriculture for input subsidy and
the Agriculture Development Fund (ADF); and 50 percent be
remitted to Consolidated Fund. This measure is intended to
support the growth of Agricultural Sector and facilitate
access to financial resources for input subsidization,
Research and Development.
(i)The Export Levy Act CAP, 196
111.Honourable Speaker, I propose to amend the Export Levy
Act CAP, 196 to introduce export levy of 30 percent or USD
150 per metric tonne (whichever is higher) on copper waste
and scrap metals HS Code 7204 and 7404. This measure is
intended to protect local manufacturers and ensure
sufficient availability of raw materials to the respective
industries.
(j)The National Payment System Act, CAP 437
112.Honourable Speaker, I propose to make amendments to the
National Payment System Act, CAP 437 by reducing mobile
money transaction levy on sending and withdrawing monies
65
from a maximum of 7,000 shillings currently in existence to
a maximum of 4,000 shillings on each transaction. This is
equivalent to a reduction of 43 percent of the current levy.
Along with that, I propose to extend the base and include all
electronic transactions. This measure is intended to reduce
the cost of living for Tanzanians, especially during the
current period of ongoing economic crisis, and to rationalize
the transaction levy.
(k) The Insurance Act, CAP 394
113.Honourable Speaker, I propose to amend the Insurance Act
CAP, 394 to expand the scope for mandatory insurance to
include public markets, Commercial buildings, imported
goods, marine vessels, ferries and pontoons. This measure is
intended to enhance financial inclusion and increase
insurance uptake.
(l) The Foreign Vehicle Transit Charges Act, CAP 84
114.Honourable Speaker, I propose to amend the Foreign
Vehicle Transit Charges Act CAP, 84 to reduce transit
charges for vehicles exceeding 3 axles from USD 16/100 km
to USD 10 or its equivalent in convertible currency for every
100 kilometres. This measure is intended to align with
charges of COMESA for the purpose of resolving the existing
challenges in charging road user fee on trucks entering
United Republic of Tanzania from other EAC countries.
(m) The Bank of Tanzania Act, CAP 197
115.Honourable Speaker, I propose to make amendments to the
Bank of Tanzania Act, by setting a limit on Government
borrowing to not exceed 18 percent of approved domestic
66
revenue in the current fiscal year instead of the current rate
of one-eighth of the domestic revenue collected in the
preceding fiscal year. This measure is intended to harmonize
the borrowing rates with other East African Community
countries as well as to enable the Government Budget
execution.
(n) The East African Community Customs Management
Act, 2004
116.Honourable Speaker, the EAC Pre-Budget Consultative
Meeting of the Ministers for Finance which was held on 13th
May 2022, Mombasa Kenya agreed to effect changes in the
Common External Tariff (CET) rates for year 2022/23. The
proposed changes are aimed at “Accelerating Economic
Recovery and Enhancing Productive Sectors for
Improved Livelihood”.
117.Honourable Speaker, the Ministers for Finance proposed to
effect new changes in the Common External Tariff (CET) for
the year 2022/2023 and also agreed to continue with some
measures that were taken into effect in the financial year
2021/22.
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 35% or USD 1.5 per square meter,
whichever is higher for one year on ceramic tiles under
HS Codes 6907.21.00; 6907.22.00; and 6907.23.00. This
measure is intended to protect local manufacturers of
ceramic tiles against cheap, substandard and
undervalued imports;
67
b) Stay of application of EAC CET rate of 10% and apply a
duty rate of 10% or USD125/MT whichever is higher for
one year on flat-rolled products under HS Codes
7212.20.00 and 7226.99.00. The objective of this
measure is to protect local manufacturers against
undervalued imports;
c) Revert back to EAC CET rate of 0% instead of 25% on
Crude Palm Oil (CPO) under HS Code 1511.10.00. This
measure is intended to protect consumer welfare against
skyrocketing price, enhance economic growth,
employment creation and value addition;
d) Stay of application of EAC CET of 0% and apply a duty
rate of 10% for one year on crude vegetable oils of soyabeans, groundnuts, coconuts, mustard and linseed
under HS Codes 1507.10.00; 1508.10.00; 1513.11.00;
1514.91.00; and 1515.11.00. The objective of this
measure is to align with sunflower, cotton and other
crude oils which attract 10% so as to promote domestic
production of vegetable oils;
e) Stay of application of EAC CET rate of 35% and apply a
duty rate of 25% or USD 500/MT whichever is higher for
one year on semi-refined and refined vegetable oils under
HS Codes 1507.90.00; 1508.90.00; 15.09; 1510.10.00;
1510.90.00; 1511.90.10; 1511.90.30; 1511.90.90;
1512.19.00; 1512.29.00; 1513.19.00; 1513.29.00;
1514.19.00; 1514.99.00; 1515.19.00; 1515.29.00;
1515.50.00; and 1515.90.00. This measure is intended to
protect and promote the processing of vegetable oils in
the country using locally grown seeds and imported
crude palm oil, as well as employmeny creation;
68
f) Stay of application of EAC CET rate of 25% and apply a
duty rate of 35% for one year on baby diapers under HS
Code 9619.00.90. This measure is intended to protect
local manufacturer of baby diapers as they have
production capacity to meet the demand in the country,
employment creation and increase Government revenue;
g) Stay of application of EAC CET rate of 10% and apply a
duty rate of 25% for one year on cotton yarn under
heading 52.05; 52.06; and 52.07 except subheading
5205.23.00. The measure is intended to protect and
promote production of cotton yarns in the country by
increasing value addition of locally grown cotton and
enhance cotton to cloth (C2C) strategy;
h) To increase import duty from 25% to 35% on windows
and doors made of aluminum, iron and steel with HS
Codes 7610.10.00 and 7308.30.00. This measure is for
protection and promotion of growth of small and medium
enterprises engaged in making windows and doors,
employment creation and increase Government revenue;
i) Grant duty remission at a duty rate of 0% instead of 10%
for one year on raw materials under HS Codes
1901.90.10; 3302.10.00; and 3505.10.00 used to
manufacture food flavors. This measure aims at
promoting growth of local manufacturers of food flavors;
j) Grant duty remission at a duty rate of 0% instead of 10%
or 25% for one year on inputs under HS Codes
4804.19.90; 4804.39.00; 4804.42.00; 4804.51.00;
4804.52.00; 4805.11.00; 4805.19.00; 4805.24.00;
4805.25.00; 4805.93.00; 4810.13.00; 4810.19.00;
4810.31.00; and 4810.32.00 used to manufacture
corrugated boxes. The objective of this measure is to
69
encourage domestic investment in production of
corrugated boxes and reduce the cost of packaging
materials;
k) Grant duty remission at a duty rate of 0% instead of 10%
for one year on inputs under HS Codes 7005.10.00;
7005.21.00; 7005.29.00; and 7005.30.00 used to
manufacture toughened glass. This measure is intended
to reduce costs of these inputs used by local
manufacturer of toughened glass;
l) Grant duty remission at a duty rate of 0% instead of 10%
or 25% for one year on inputs under HS Codes
7312.10.00; 7217.20.00; 7408.19.00; 7409.11.00;
7605.21.00; 2710.19.56; 3815.90.00; 5402.19.00;
5903.90.00; 7217.20.00; 7907.00.00; 7312.10.00; and
2712.10.00 used to manufacture electrical cables. The
objective of this measure is to reduce the cost of these
inputs used by local manufacturers so as to promote the
establishment of import substitution industries of
electrical cables;
m)Grant duty remission at a duty rate of 10% instead of
25% for one year on inputs under HS Code 3401.20.10
used to manufacture soap. This measure is intended to
reduce the cost of these inputs so as to promote growth
of local manufacturers of soap, employment creation and
increase Government revenue;
n) Stay of application of EAC CET rate of 100% or USD
460/MT whichever is higher and apply a duty rate of
25% for one year on cane sugar under HS Code
1701.14.90 imported under a permit issued by the
Tanzania Sugar Board. This measure is intended to cover
the sugar production gap in the country;
70
o) Grant duty remission at a duty rate of 0% instead of 25%
for one year on prefabricated building under HS Code
9406.20.90. This measure intends to promote livestock
sector, attract investment, employment creation and
increase Government revenue through multiplier effect
from the investment;
p) Tanzania together with other EAC Partner States agreed
to increase import duty from 25% to 35% on wigs, false
beards, eyebrows and eyelashes, switches of human or
animal hair or of textile materials under Heading 6704.
This measure will protect local manufacturer of these
products, employment creation and increase Government
revenue;
q) Tanzania together with other EAC Partner States agreed
to assign a duty rate of 10% instead of 25% on other
petroleum oil products partly refined under HS Code
2710.19.10. This measure is intended to protect
consumer welfare;
r) Tanzania together with other EAC Partner States agreed
to introduce new HS Codes of 8543.40.00 containing
Electronic Cigarettes and assign a duty rate of 35% since
it is tobacco substitute. The objective of this measure is
to create a level playing field for local manufacturer of
tobacco against importers of electronic cigarettes and
employment creation;
s) EAC Partner States agreed to amend the description of
the HS Codes 7310.29.20 and 7612.90.10 to read “Cans
and ends for beverages and food” in order to provide a
room for cans and ends for packaging food to enjoy
import duty relief (0%) as it has been applied to cans and
ends for packaging beverages only while these two
71
products compliment each other and serve the same
purpose.
ii. The proposed measures that were taken into effect in the
financial year 2021/22 which continue to be
implemented in 2022/23 are as follows: –
a) Continue to grant duty remission at a duty rate of 0%
instead of 25% or 10% on inputs used to manufacture
essential medical products and supplies for fighting
COVID-19 including masks, sanitizers, coveralls, face
shields and ventilators for one year. The objective of this
measure is to continue promoting domestic production of
items for fighting COVID-19 pandemic;
b) Continue to grant stay of application of EAC CET rates of
10% and apply a duty rate of 0% for another year on
cash registers and other Electronic Fiscal Device (EFD)
Machines and Point of Sale (POS) of HS Codes
8470.50.00 and 8470.90.00. The objective of this
measure is to encourage the use of electronic devices for
accounting of Government revenues at reduced costs of
the machines;
c) Continue to grant duty remission at a duty rate of 0%
instead of 25% for one year on other packing containers,
including record sleeves under HS Code 4819.50.00 used
as inputs by domestic manufacturers of UHT milk in
order to promote growth of domestic milk processing
industry;
d) Continue to grant duty remission at a duty rate of 0%
instead of 10% for another year on corks and stoppers
under HS Code 4503.10.00 used as inputs by domestic
72
manufacturers of local wines so as to promote the growth
of grapes farming and wine industries in the country;
e) Continue to grant stay of application of EAC CET rate of
0% and apply a duty rate of 10% for one year on cocoa
powder, not containing added sugar or other sweetening
matter under HS Code 1805.00.00. The measure is
intended to promote domestic cocoa seeds processing
and enhance value addition in the country;
f) Continue to grant duty remission at a duty rate of 0%
instead of 25% for one year on packaging materials under
HS Codes 7310.21.00; 6305.10.00; 3923.50.10;
3923.50.90 and 3920.30.90 used for packing processed
coffee. This measure aims at reducing packaging material
costs for coffee processors in the country;
g) Continue to grant duty remission at a duty rate of 0%
instead of 25% for one year on sacks and bags of
polymers of ethylene under HS Code 3923.21.00 used as
inputs by domestic processors of cashew nuts. The
objective of this measure is to reduce cost of sacks and
bags for domestic cashew nuts processing industry in the
country;
h) Continue to grant duty remission at a duty rate of 0%
instead of 25% for one year on inputs under HS Code
3920.30.90; 6305.39.00; and 7217.90.00 used by
domestic processors of cotton lint. This measure is
intended to promote cotton processing industry in the
country;
i) Continue to grant duty remission at a duty rate of 0%
instead of 25% or 10% on raw materials under HS code
3506.91.00 (Hot Melt Adhesive); HS Code 3920.10.90 (PE
73
film); HS Code 6305.33.00 (Empty bag for Baby Diapers);
HS Code 3926.90.90 (Plastic cask); HS Code 3906.90.00
(Super Absorbent Polymer); HS Code 4803.00.00 (Wet
strength paper); HS Code 5603.11.00 (Non-woven); HS
Code 5903.90.00 (Polyethylene laminated Nonwovens);
HS Code 5402.44.00 (Spandex); and HS Code
4803.00.00 (Dust free paper). These materials are used to
manufacture baby diapers. This measure is intended to
reduce the cost of production for manufacturers of baby
diapers in the country;
j) Continue to grant duty remission at a duty rate of 0%
instead of 25% or 10% for one year on inputs under HS
Codes 6804.10.00; 7018.90.00; 7020.00.99; 3606.90.00;
6813.20.00; 8202.20.00; 8202.99.00; 8203.20.00;
8205.10.00; 8423.89.90; 8513.10.90; and 9002.19.00
used by domestic minerals processors. This measure is
intended to create value addition of gemstones and
employment creation;
k) Continue to grant duty remission at a duty rate of 0%
instead of 25% for one year on packaging materials for
seeds under HS Codes 3923.29.00; 6305.10.00;
4819.40.00; 7310.29.90; 6305.33.00; 6305.20.00;
6304.91.90 and 7607.19.90 used by local producers of
agricultural seeds. This measure is intended to reduce
the cost of packaging materials for domestic producers of
agricultural seeds;
l) Continue to grant stay of application of EAC CET rate of
10% and apply a duty rate of 10% or USD 125/MT
whichever is higher for one year on iron and steel
products under HS Code 7209.16.00; 7209.17.00;
7209.18.00; 7209.26.00; 7209.27.00; 7209.28.00;
7209.90.00; 7211.23.00; 7211.90.00; 7226.92.00; and
74
7225.50.00. This measure is intended to protect
manufacturers of iron and steel products in the country
against undervalued imports;
m)Continue to grant stay of application of EAC CET rate of
25% or USD 200/MT whichever is higher and apply a
duty rate of 25% or USD 250/MT whichever is higher for
one year on flat-rolled products of iron or non-alloy steel,
of a width of 600 mm or more plated or coated with zinc
under HS Codes 7210.49.00; 7210.61.00; 7210.69.00;
7210.70.00; and 7210.90.00. This measure is intended to
protect local manufacturers against undervaluation of
these products when imported in the country;
n) Continue stay of application of EAC CET rate of 10% and
apply a duty rate of 10% or USD 250/MT whichever is
higher for one year on flat-rolled products of iron or nonalloy steel, of a width of less than 600 mm, clad under
HS Code 7212.60.00. This measure is intended to protect
iron and steel manufacturers in the country against
undervaluation;
o) Continue to grant stay of application of EAC CET rate of
25% or USD 200/MT whichever is higher and apply a
duty rate of 25% or USD 250/MT whichever is higher for
one year on flat-rolled products of iron or non-alloy steel,
of a width of less than 600 mm, clad, plated or coated
under HS Code 7212.30.00. This measure is intended to
protect iron and steel manufacturers in the country
against undervaluation;
p) Continue stay of application of EAC CET rate of 25% or
USD 200/MT whichever is higher and apply a duty rate
of 25% or USD 250/MT whichever is higher for one year
on Iron and steel reinforcement bars and hollow profiles
75
under HS Codes 7213.10.00; 7213.20.00; 7213.99.00;
7306.30.00; 7306.50.00; 7306.61.00; 7306.69.00; and
7306.90.00. This measure is intended to protect iron and
steel manufacturers in the country;
q) Continue stay of application of EAC CET rate of 10% and
apply a duty rate of 25% or USD 250/MT whichever is
higher for one year on Flat-rolled products of other alloy
steel, of a width of 600 mm or more under HS Codes
7225.91.00; 7225.92.00; and 7225.99.00. This measure
is intended to protect manufacturers of iron and steel
products in the country, employment creation and
increase Government revenue.
r) Continue to stay of application of the EAC CET rate of 0%
and apply a duty rate of 10% for one year, on
monofilament of which any cross-sectional dimension
exceeds 1mm, rods, sticks and profile shapes whether or
not surface worked but not otherwise worked of plastics
under HS Codes 3916.10.00; 3916.20.00; and
3916.90.00. These are intermediate products and are
used to perform similar function as of aluminum profiles
(substitute) falling under Heading 76.04;
s) Continue to grant stay of application of EAC CET rate of
10% and apply a duty rate of 25% on the paper and
paper products under HS Code 4804.29.00. This
measure is intended to protect domestic industry and
enhancing competitiveness of domestically produced
paper and paper products;
t) Continue to grant duty remission at a rate of 10% instead
of 35% on imported wheat grain under HS Codes
1001.99.10 and 1001.99.90. This measure is intended to
reduce the cost of production for manufacturers of wheat
76
flour in the country and relieve citizens from high prices
of wheat products;
u) Continue to grant duty remission at a rate of 0% instead
of 25% on Printed Aluminum Barrier Laminates (ABL)
under HS Code 3920.10.90. This measure is intended to
promote competitiveness of domestic industries of
toothpaste;
v) Continue to grant duty remission at a rate of 0% instead
of 10% on Refined Bleached Deodorized (RBD) Palm
Stearin under HS Code 1511.90.40. This measure is
intended to promote the domestic manufacturers of
soaps and address price increase of soap;
w) Continue to grant stay of application of the EAC CET rate
of 25% and apply a duty rate of 25% or USD 1.35/kg
whichever is higher for one year on safety matches under
HS Code 3605.00.00. This measure is intended to protect
the domestic manufacturers of safety matches;
x) Continue to grant stay of application of EAC CET rate of
25% and apply rate of 25% or USD 350 per metric ton
whichever is higher on nails, tacks, drawing pins,
corrugated nails staples (other than those of heading
83.05) and similar articles of iron or steel, whether or not
with heads of other materials under HS Code
7317.00.00. The objective of this measure is to protect
local producers of these products against imported cheap
or undervalued products;
y) Continue to grant stay of application of the EAC CET rate
of 25% and apply a duty rate of 60% for one year on
mineral water under HS Code 2201.10.00. The objective
77
of this measure is to protect domestic producers of
mineral water as there is enough capacity in the region;
z) Continue to grant stay of application of EAC CET rate of
0% and apply 10% for one year on gypsum powder under
HS Code 2520.20.00 in order to protect the gypsum
powder producers against imports in the country;
aa) Continue to grant stay of application of EAC CET
rate of 35% or USD 0.40/Kg whichever is higher and
apply a duty rate of 35% on worn items of clothing,
footwear and articles under HS Code 6309.00.10;
6309.00.20 and 6309.00.90 for one year. This measure is
intended to protect the consumer welfare;
bb) EAC partner States agreed to continue grant duty
remission on raw materials and industrial inputs used to
manufacture textiles and footwear. This aims at
promoting textiles and footwear manufacturers in the
country;
cc) Continue to grant 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 under HS
Codes 8702.10.99 and 8702.20.99 imported for rapid
transport project for one year. This measure is intended
to de-congest the city and ease the transportation system
within the country;
dd) Continue to grant stay of application of the EAC
CET rate of 10% and apply a duty rate of 25% for one
year on new pneumatic tyres of rubber, of a kind used on
motorcycles under HS Code 4011.40.00. This measure is
intended to encourage domestic investment in production
of pneumatic tyres in the country;
78
ee) Continue to grant Stay of application of the EAC
CET rate of 10% and apply a duty rate of 0% for one year
on Wires of other alloy steel under HS Codes 7229.20.00
and 7229.90.00 in order to reduce the costs of these
inputs used by local manufacturers;
ff) Continue to grant stay of application of the EAC CET rate
of 25% and apply a duty rate of 0% for one year on milk
cans under HS Codes 7310.10.00 and 7310.29.90 in
order to provide relief to the diary sector in the country.
gg) Continue to grant duty remission at a duty rate of
0% instead of 10% for one year on organic surface-active
agents (Anionic) under HS Code 3402.11.00 used by
manufacturers of detergents and liquid soaps. The
objective of this measure is to reduce the cost of inputs
for detergents and liquid soaps manufacturers in the
country;
hh) Continue to grant duty remission at a duty rate of
0% instead of 25% or 10% for one year on raw material
under HS Codes 3208.20.00 and 3210.00.10 used in
leather processing in order to promote growth of local
leather industries.
ii) Continue to grant duty remission at a duty rate of 0%
instead of 25% or 10% for one year on raw materials
under HS Codes 2710.99.00; 2528.00.00; and
3505.20.00 used to manufacture different types of
fertilizers. This measure aims at promoting growth of
local manufacturers of fertilizers;
jj) Continue to grant duty remission at a duty rate of 0%
instead of 25% for one year on packaging materials for
79
processed tobacco under HS Code 5310.10.00 in order to
reduce costs to processors of tobacco;
kk) Continue to grant duty remission at a duty rate of
0% instead of 25% for one year on packaging materials
under HS Codes 4819.20.90; 5407.44.00; and
3923.29.00 used by local manufacturers of tea
(blenders). The objective is to reduce costs of tea blenders
in the country;
ll) Continue to grant duty remission of 10% instead of 25%
for one year on CKD for three-wheel motorcycle excluding
chassis and its components under HS Code 8704.21.90.
The measure is intended to reduce cost of production for
local manufacturers of three-wheel motorcycles used for
cargo transportation.
mm) Continue to grant duty remission at a duty rate of
0% instead of 25% or 10% for one year on inputs used to
manufacture glass reinforced plastic pipes (Polyester Film
50mm & 200mm; Tissue Mat 30gr; Chopped Strand
Mat/Knitted glass Mat; Mesh cloth liner; Sand holding
cloth (Polyester Mesh); Direct Roving (2400 TEX); Direct
Roving (600 TEX); Chop Roving; Surface Liner; Rubber Oring; Rubber Gasket; and Resin Cystitis) under HS Codes
3920.61.10, 7019.39.00, 7019.31.00, 6006.90.00,
7019.12.00, 3920.10.10, 4016.93.00, and 3907.91.00.
The objective of this measure is to promote local
manufacturers of glass reinforced plastic pipes and
create more employment in the country;
nn) Continue to grant stay of application of the EAC
CET rate of 100 % or $ 460/MT whichever is higher and
apply a duty rate of 10% for one year on refined white
sugar (sugar for industrial use) under HS Code
80
1701.99.10. This measure is intended to reduce the cost
of this input used by local manufacturers.
iii. Partner States of the EAC agreed on the maximum rate
for products classified under the 4th band of the revised
Common External Tariff to be 35%. The products under
the 4th band include products of animals such as fish,
meats and diaries, agro-processing products including
tea and coffee, horticultural products, luxurious goods
such as human air, wigs, cosmetics, perfumes and
beverages, refined edible oils, salt, cement, paints, soaps,
tanks, packaging items, wood products, leather products,
ceramics, furniture, iron and steel products, sugar
confectionery such as chewing gum, biscuit, and
chocolates, tomato sauces, sausages, peanut butter. The
effective date of implementation of the revised EAC CET
is expected to be 01st July, 2022.
The Import Duty measures altogether are expected to increase
Government revenue by shillings 66,791 million.
(o) Implementation of BLUEPRINT for Regulatory
Reforms to improve the Business Environment by
amending Various Fees and Levies.
118.Honourable Speaker, the Government continues to
implement Blueprint for Regulatory Reforms to improve the
Business Environment. The proposed amendments include
the following: –
i. Ministry of Livestock and Fisheries
a) Livestock Sector
I propose to amend different fees charged by Livestock Sector
as shown in Annex No.5;
81
b) Fisheries Sector
I propose to amend different fees charged by Fisheries Sector
as shown in Annex No.6;
ii. Ministry of Agriculture
a) I propose to abolish impoundment fee of Tsh. 200 per
square meter of surface area for water stored in irrigation
dams. This measure is intended to provide relief to farmers
dealing with irrigation farming; and
b) I propose to amend The Fertilizer Regulations 2017 to
increase export permit application fee for manufactured
fertilizer from 0.2 to 0.5 USD per tone. This measure is
intended to promote production and utilization of fertilizer
in the country and enhance employment. The measure is
also in line with Industrialization Policy.
iii. Ministry of Information, Communication and Information
Technology
Introduce a fee of between 1,000 shilling to 3,000 shilling on
the Television decoder subscription depending on the use. The
purpose of this measure is to increase Government revenue.
iv. Ministry of Culture, Arts and Sports
I propose to introduce a levy of 1.5 percent on equipment used
to produce, distribute, duplicate and preserve works of art,
writing and other creative works such as music, films, books,
photography and other forms of creative work. The proposed
aquipments are Radio / TV set enabling recording; analogue
audio recorders; analogue video recorders; CD / DVD Copier;
Digital Jukebox and MP 3 Player. This measure is expected to
increase Government revenue by shillings 9,600 million;
v. Tanzania Bureau of Standards
82
I propose to reduce batch certification fee on imported sugar
from shilling 6 per kilogram to 2.5 shilling per kilogram. This
measure is intended to reduce cost to sugar importers and
subsequently provide relief to consumers ;
vi. Occupational Safety and Health Authority (OSHA)
I propose to abolish peak expiratory of 10,000 shillings and
flow test fee of 25,000 shillings. This measure is intended to
improve business environment especially in industrial areas.
vii. Tanzania Atomic Energy Commissions
a) I propose to reduce radiation test fee from 0.2 percent of
FOB to 0.1 percent of FOB on exports of Food Chain
Materials including fertilizers, tobacco and tobacco
products, and imported relief food. This measure is
intended to improve business environment, promote export
of value added finished products and control illicit
trafficking ; and
b) Amend various fees and levies charged by Tanzania Atomic
Energy Commissions as shown in Annex No. 7.
viii. Fire and Rescue Forces
I propose to amend Fire and Rescue Act, CAP 427 to reduce
various fees and charges as shown in Annex No. 8. This
measure is intended to reduce cost of doing business.
ix. Gaming Board of Tanzania
I propose to amend the Schedule of gaming fees and levies
made under the Gaming Act, CAP 41 as shown in Annex No.
9.
83
x. Immigration Department
In the Financial year 2021/22 the Government abolished
Student VISA/PASS fee for higher learning institution
students in Tanzania – Mozambique students exchange
programme (TAMOSE). Further to that, I propose to abolish
student residence permit fee for higher learning institution
students from Mozambique. This measure is intended to
promote and facilitate exchange programs.
119.Honourable Speaker, I propose to amend various laws as
part of the Government plans to improve the business
environment by reducing legal interactions. The proposals
are as follows:
i. Delete section 6(10) (b) (ii) and (iii) of the Tanzania
Communications Authority Act No. 12, 2003 and consider
section 4 (3) of the Standards Act No. 2, 2009 in order to have
National Standards. This measure is intended to retain the
responsibility of national standards to the Tanzania Bureau of
Standards. TCRA will have to provide communication
equipment standards to TBS regarding requests for standards;
ii. Delete section 7 (1) (b) (ii) and (iii) of the Energy and Water
Utilities Regulatory Authority Act, CAP. 414 so as to relinguish
the responsibility of national standards to the Tanzania
Bureau of Standards. EWURA will provide standard
requirements to TBS together will exeprts needed to regulate;
iii. Delete section 5 (1) (c) (i) and (ii) of the Land Transport
Regulatory Authority Act No. 3, 2019 so as to surrender the
responsibility of standards to the Tanzania Bureau of
Standards. LATRA will provide standard requirement to TBS
together with the experts if needed be;
84
iv. Delete section 5(2) (c) of the Cotton Industry Act No. 2, 2001 in
order to retain the responsibility of national standards to the
Tanzania Bureau of Standards. Tanzania Cotton Board will
provide standard requirement to TBS;
v. Delete section 12(1) (b) and (c) of the Tanzania Shipping
Agencies Act, No. 14, 2017 in order to retain the responsibility
of national standards to the Tanzania Bureau of Standards.
TASAC will give all necessary information for regulations to
TBS;
vi. Delete section 41(1) of the Tanzania Food, Drugs and
Cosmetics Act, No.1, 2003 so as to leave the control of abattoir
to the Ministry of Livestock and Fisheries;
vii. Delete section 3(2) (g) of the Animal Disease Act No. 17, 2003
in order to relinguish the regulatory the responsibility of
vaccine registration to Tanzania Medicine and Medical Devices
Authority;
viii. Amend section 10 of the Diary Industry Act in order for the
inspection to be done by Diary Board in collaboration with
Tanzania Bureau of Standards;
ix. Amend marginal note in section 46 of the Copyright Act to
remove the conflict of interest in carrying out the
responsibilities of the Tanzania Copyright Association. In
addition, I propose to delete the word ‘’society’’ and replace
with the word ‘’Copyright Office’’ in sections 46, 47, 48 and its
schedule;
x. Amend section 51 of the Copyright Act to add part VII which
will require Collective Management Organizations to report
their audited accounts to the Copyright Office annually for the
85
accountability and strengthen the management of copyright
and related issues;
xi. Amend section 5(2) of the Cotton Industry Act, CAP. 201 so
that the responsibility for regulating cotton standards to be
undertaken by the Tanzania Bureau of Standards;
xii. Amend section 23 of the Tourism Act CAP 65 to give power to
the Director General of the Tourism Board the authority to
issue permits after approval by the Board;
xiii. Amend section 28 of the Fertilizer Act, CAP. 378 so that the
responsibility of preparing Standards Regulations to be carried
out by Tanzania Bureau of Standards;
xiv. Amend section 17 of the Occupational Safety and Health Act,
CAP. 297 to urge OSHA to issue a license within 7 days after
the applicant meets the criteria;
xv. Amend section 35 of the Local Government (Urban Authorities)
Act, CAP. 287 to urge Urban Authorities to establish joint
centers for coordination, mobilization and improvement of the
business environment;
xvi. Amend section 113 of the Local Government (District
Authorities) Act, CAP. 288 to urge village Authorities to
establish joint centers for coordination, mobilization and
improvement of the business environment;
xvii. Amend sections 6, 7, and 8 of the Local Government Finance
Act, CAP. 290 to reduce the hotel levy from 10 percent to 5
percent; and
86
xviii. Amend section 3 of the Hides, Skins and Leather Trade Act
CAP. 120 to provide clarity on skins of domesticated animals
and wild animals.
(p) Minor Amendments in Tax Laws and Others
120.Honourable Speaker, I propose to make minor amendments
to various Tax Laws and other Laws in order to ensure their
smooth and effective implementation. The amendments will
be effected through the Finance Bill 2022 and Government
Notices.
121.Honourable Speaker, in line with the measures outlined
above, I urge the Government’s owned insurance business to
compete in a free market as in other businesses. Stateowned insurance companies namely the National Insurance
Corporation (NIC) and the Zanzibar Insurance Corporation
(ZIC) should operate in a level play field for quality services
instead of the current situation where only NIC is given the
opportunity to render service to Public Institutions.
(q) Effective Date for Implementation of New Revenue
Measures
122.Honourable Speaker, unless otherwise stated, the new
measures shall become effective on 1st of July, 2022.
VI. BUDGET FRAME FOR 2022/23
123.Honourable Speaker, the budget frame for 2022/23 shows
that 41.48 trillion shillings will be mobilized and spent.
Domestic revenue is projected to be 28.02 trillion shillings,
equivalent to 67.5 percent of the total budget. Out of the
total domestic revenue, TRA revenue collections is estimated
87
at 23.65 trillion shillings and non-tax revenue (collected by
Ministries, Departments, Institutions and Local Government
Authorities) is estimated at 4.37 trillion shillings.
124.Honourable Speaker, grants and concessional loans from
Development Partners are estimated at 4.65 trillion shillings,
equivalent to 11.2 percent of the total budget. The
Government expects to borrow 5.78 trillion shillings from the
domestic market. Out of this, 3.30 trillion shillings will be
for rolling over of maturing Government Treasury Bills and
Bonds and 2.48 trillion shillings for financing development
projects. The Government also expects to borrow 3.03
trillion shillings from non-concessional sources for the
purpose of accelerating implementation of development
projects.
125.Honourable Speaker, in 2022/23, the Government plans to
spend 41.48 trillion shillings for recurrent and development
expenditures. Out of which, the recurrent expenditure is
26.48 trillion shillings equivalent to 63.8 percent of the total
budget, whereby 11.31 trillion shillings is for servicing
Government debt and other expenditure under Consolidated
Fund, and 9.83 trillion shillings for salaries including salary
increase, promotions for existing employees and new
recruits. In addition, 5.34 trillion shillings is for Other
Charges (OC) including 200 billion shillings for payment of
arrears to public servant and suppliers.
126.Honourable Speaker, development expenditure is expected
to be 15.0 trillion shillings, equivalent to 36.2 percent of the
total budget. Out of the amount, 12.31 trillion shillings,
equivalent to 82.0 percent of the development budget is from
domestic sources and 2.70 trillion shillings equivalent to 18
88
percent of development budget is from external sources.
Development funds from domestic sources include: 1.11
trillion shillings for the Standard Gauge Railway project;
1.44 trillion shillings for the Julius Nyerere Hydropower
Project; 1.18 trillion shillings for Road Fund; 944.1 billion
shillings for Railway, Water and Rural Electrification Agency;
570 billion shillings for higher education student’s loans;
230.0 billion shillings for verified arrears to contractors; and
346.5 billion shillings for fee free basic education.
127.Honourable Speaker, based on an aforementioned, the
budget frame for 2022/23 is as shown in Table No.1
89
Table No. 1: Budget Frame for 2022/23
Millions Shilling
Revenue Budget 2022/23
A. Government Domestic Revenue 28,017,867
(i)Tax Revenue (TRA) 23,652,758
(II) Non-Tax Revenue 3,352,824
(iii) LGAs own source 1,012,286
B. External Grants and Concessional Loans 4,648,561
(i)General Budget Support 1,949,480
(ii)Projects Loans and Grants 2,576,958
(iii)Basket Loans and Grants 122,123
C. Domestic & External Non-Concessional Loans 8,814,152
(i)External Non-Concessional Borrowing 3,034,004
(ii)Domestic Non-Concessional Borrowing 2,480,148
(iii)Domestic Non-Concessional Borrowing (Rollover) 3,300,000
Total Revenue (A+B+C) 41,480,580
Expenditure
D. Recurrent Expenditure 26,475,748
o/w (i) Consolidated Fund Services (CFS) 11,308,365
-Domestic Interest 1,770,159
-Domestic Amortization (Rollover) 3,300,000
-External Amortization 2,916,041
-External Interest 1,100,802
-Government Contribution to Pension Funds 1,655,652
-Other CFS Expenditure 565,710
(ii)Wages and Salaries 9,830,753
(iii)Other Charges 5,336,630
-Payment of verified arrears 200,000
-LGAs Expenditure (Own source) 617,485
-MDAs Other Charges 4,519,145
E. Development Expenditure 15,004,833
(i) Domestic Financing 12,305,752
o/w Payment of Verified Arrears 230,000
o/w Standard Gauge Railway (SGR) Project 1,113,000
0/w Julius Nyerere Hydropower Project 1,435,000
o/w LGAs Expenditure (Own source) 394,801
o/w Other Development Projects 9,132,951
(ii) Foreign Financing 2,699,081
TOTAL EXPENDITURE (D+E) 41,480,580
Source: Ministry of Finance and Planning
90
VII. CONCLUSION
128.Honourable Speaker, the sustainable development of any
nation in the world is built on the participation of all citizens
under strong and valiant leadership. The budget has been
prepared in a participatory approach whereby different
groups of stakeholders were involved. Those groups
comprise of members of the Parliament, Private Sector,
Development Partners, experts from public and private
institutions as well as ordinary citizens. The comments
presented by these groups have helped to improve the
preparation of the budget in planning priorities and policies
aimed at addressing different challenges in our country. On
that basis, it is obvious this is the “Citizens’ Budget’’, it is
“Our budget” for our development.
129.Honourable Speaker, as stated earlier, the 2022/23 budget
aims at accelerating economic recovery and strengthening
the productive sectors in order to improve livelihoods,
therefore more efforts will be directed in those areas under
the slogan of “Kazi Iendelee”.
130.Honourable Speaker, in addition to the priorities mentioned
earlier, we are all aware that economic growth must be
people centered and it is known that, “A Mother cannot let
her child suffer, A Mother is compassionate, A Mother
cares and loves her children”. Therefore, the Sixth Phase
Government led by Her Excellency Samia Suluhu Hassan,
the President of the United Republic of Tanzania, has
ensured the budget will improve the livelihood of Tanzanians
through improvement of the productive sectors. This will
increase employment and income, to address various
challenges including inflation resulted from global economic
changes and effects of climate change.
91
131.Honourable Speaker, the Sixth Phase Regime continues to
implement strategies that build the foundation of our Nation
to enhance economic independence. These strategies will be
successful if every Tanzanian participates in income
generating activities in line with national laws by exploring
economic opportunities to raise income and increase
Government domestic revenue. Therefore, I encourage all
citizens, public and private institutions to demand
appropriate receipts when buying goods and services to
make sure the Government collects appropriate taxes from
transactions made. Likewise, I encourage traders and all
business companies to voluntarily pay Government taxes.
132.Honourable Speaker, I would like to take this opportunity
to congratulate Honourable Dr. Philip Isdor Mpango, Vice
President of the United Republic of Tanzania, for his
support to the President in fulfilling responsibilities to bring
development to the country. In addition, I would like to
congratulate His Excellency Dr. Hussein Ali Hassan
Mwinyi, President of Zanzibar and the Chairperson of the
Revolutionary Council, for his strong leadership and
determination to bring development to Zanzibar. Also, I
would like to take this opportunity to congratulate
Honourable Kassim Majaliwa Majaliwa, Prime Minister of
the United Republic of Tanzania, for continuing to oversee
and coordinate the day-to-day running activities of
Government and Government performance in Parliament
with great competence together with assisting the President
of the United Republic of Tanzania in bringing development
to the Nation. Further I congratulate Honourable Judge Dr.
Eliezer Mbuki Feleshi the Attorney General for timely
preparation of the Finance Bill 2022 and Appropriation Bill
2022.
92
133.Honourable Speaker, I would like to congratulate you for
being elected as the second woman in history to lead this
Esteemed House. I congratulate Deputy Speaker for being
elected to lead this Esteemed House. It is our expectation
that, your commitment and wisdom you have demonstrated
in your previous positions will continue increasing while
serving these positions. Further, I congratulate Chairpersons
of the Parliament for your firm supervision of Parliamentary
sessions, you have been of great importance in operations of
this Esteemed House. In addition, I would like to express my
gratitude to the Parliamentary Standing Committee for
Budget under the Chairmanship of Hon. Sillo Daniel Baran,
Member of Parliament for Babati Rural as well as Deputy
Chairman, Hon. Omari Mohamed Kigua, Member of
Parliament for Kilindi for their good comments and advice in
improving the day-to-day operations of the Ministry as well
as preparations of the 2022/23 Plan and Budget.
134.Honourable Speaker, I would like to congratulate the
Honourable Professor Ibrahim Hamisi Juma, Chief Justice of
Tanzania for his exemplary leadership of the Judiciary which
is crucial to the country’s social welfare, peace and
harmony. The Word of God says, RIGHTEOUSNESS EXALTS
A NATION, BUT SIN IS A DISGRACE TO ANY PEOPLE
(PROVERBS 14:34). I encourage you to continue upholding
the rule of law in discharging your duties. I commend the
Defense and Security Organs for the good work that has
honoured our country and made it a unique. Her Excellency,
the President and the Commander-in-Chief of the Defense
and Security Organs always provide guidance to the Ministry
of Finance and Planning to ensure allocation of the budget is
in line with the needs in order to discharge your duties
diligently for the benefit of all Tanzanians.
93
135.Honourable Speaker, I thank Honourable Ministers, Deputy
Ministers, Chief Secretary, Permanent Secretaries, and
Deputy Permanent Secretaries as well as experts from all
Ministries and Government institutions for their
contribution towards preparation of this budget. I sincerely
express my gratitude to religious leaders and believers for
their continuous prayers for our Nation. In addition, I would
like to take this opportunity to urge leaders and believers of
all religions to continue praying for our President and
leaders of the Sixth Phase Regime. May God grant them good
health, wisdom, humbleness and goodwill in managing our
country’s resources while discharging their duties.
136.Honourable Speaker, I would like to thank Honourable
Hamad Hassan Chande, Member of Parliament for Kojani
Constituency and Deputy Minister for Finance and Planning
for his cooperation and support towards discharging day to
day responsibilities. Further, I thank Mr. Emmanuel Mpawe
Tutuba, Permanent Secretary and Paymaster General for
supervision of day-to-day responsibilities and coordination
on the preparations of this Government Budget, supported
by Deputy Permanent Secretaries. Furthermore, I would like
to thank the, Heads of other Institutions under the Ministry
of Finance and Planning, Heads of Divisions, Departments
and Units of the Ministry as well as with all officials in the
Ministry and its institutions for the great work of
preparation and completion of this budget.
137.Honourable Speaker, I would like to take this opportunity
to thank Development Partners for their continued support
to the Sixth Phase Government in its development agenda.
The partners expected to contribute to the Government
budget for 2022/23 include the Governments of Canada,
94
China, Denmark, Finland, India, Ireland, Italy, Japan, South
Korea, USA, Norway, Poland, Sweden, Belgium, France, the
United Kingdom, Germany and Switzerland. In addition, the
International Organizations and Institutions expected to
contribute to 2022/23 budget are: African Development
Bank; World Bank; International Monetary Fund; Arab Bank
for Economic Development in Africa; Abu Dhabi Fund;
Kuwait Fund; Global Fund to Fight Against AIDS,
Tuberculosis and Malaria; European Union; European
Investment Bank; United Nations and all its affiliates; OPEC
Fund for International Development; and GAVI Federation.
Similarly, I would like to acknowledge both local and
International NGOs for their contributions to the social
sector for the well-being of our people. I would like to assure
you that, the Government values your contributions and will
continue to open up opportunities for cooperation.
138.Honourable Speaker, I would like to congratulate the Young
Africans Sports Club for the outstanding performance this
season and I would like to express my sincere apologies to
my Boss, Honourable Prime Minister for what Fei Toto did in
Mwanza. I also apologize for the incidence, when I sent Fei
Toto to Young Africans Sports Club, I never knew he would
become this lethal to our rivals. I personally congratulate
Honourable Antony Mavunde (MP) for playing crucial role
when the Club was passing through difficult times.
Furthermore, I would like to avail my appreciation to GSM
for restoring joy and happiness to the fans especially by
signing Fiston Mayele. Mayele has become more popular
than most of the secretary generals of some political parties.
Congratulations to Simba Sports Club for representing the
country well in international competitions, they always have
my support when comes to international tournaments.
95
139.Honourable Speaker, may I take this opportunity to thank
the Almighty God for granting me ability to present this
budget speech. I would like to thank my family, my lovely
wife NEEMA NCHEMBA, my children including Joshua
Mwigulu who is here with us today and my sister Peripetua
Madelu, for their continued encouragement and prayers for
the entire period during execution of my duties. Likewise, let
me express my sincere appreciation to the voters of Iramba
West Constituency for their continued collaboration on the
execution of my Parliamentary responsibilities. Thank you
very much Honourable Members of Parliament and all
Tanzanians for listening.
MUNGU IBARIKI AFRIKA, MUNGU IBARIKI TANZANIA.
KAZI IENDELEE!
140.Honourable Speaker, I beg to move.
96
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23
Actual Actual Actual Actual Actual Budget Likely Outturn Budget
Total Domestic Revenue 16,639,933 17,944,887 18,527,293 21,069,957 20,594,735 25,691,735 24,350,024 28,017,867
A.Tax Revenue 14,126,590 15,191,421 15,511,330 17,622,822 17,624,454 21,778,103 20,811,234 23,652,758
- Import duty 998,164 1,109,205 1,201,045 1,253,272 1,286,114 1,504,414 1,444,238 1,629,283
- Excise Duty 2,106,442 2,199,900 2,370,414 2,512,423 2,722,380 3,133,395 2,945,391 3,235,033
- Value added tax 3,912,674 4,425,968 4,736,876 4,987,319 5,029,231 5,940,766 5,406,097 6,361,863
- Income tax 5,117,862 5,157,106 5,072,402 6,490,240 6,015,741 6,866,152 7,072,137 8,091,001
- Other taxes 1,991,449 2,299,242 2,130,594 2,379,569 2,570,988 4,333,375 3,943,371 4,335,577
B. Non-tax revenue 2,513,343 2,753,466 3,015,963 3,447,135 2,970,281 3,913,632 3,538,789 4,365,110 - Parastatal dividends & Contributions 893,935 803,502 682,331 738,810 636,399 779,033 755,662 2,572,075
- Ministries and regions 1,107,690 1,408,464 1,674,534 1,991,076 1,576,826 2,270,741 1,884,715 780,749
- LGAs own source 511,718 541,499 659,098 717,249 757,055 863,858 898,412 1,012,286
Source: Ministry of Finance and Planning
Tshs M illion Annex 1: Domestic Revenue Collection Trend: 2016/17 -2022/23
97
2016/17 2017/18 2018/19 2019/20 2020/21 2020/21 2021/22 2022/23
Actual Actual Actual Actual Actual Budget Likely Budget
I. TOTAL RESOURCES 22.4% 21.5% 21.9% 20.6% 21.2% 24.5% 21.7% 22.0%
Domestic revenue 14.2% 14.2% 13.5% 14.2% 13.0% 16.0% 14.0% 14.3%
LGAs Own Sources 0.5% 0.4% 0.5% 0.5% 0.5% 0.6% 0.5% 0.5%
Programme loans and grants 0.3% 0.2% 0.1% 0.3% 0.1% 0.8% 0.8% 1.0%
Project loans and grants 1.6% 1.5% 1.4% 2.0% 1.4% 1.7% 1.6% 1.4%
Basket support Loans 0.1% 0.1% 0.0% 0.1% 0.1% 0.0% 0.0% 0.1%
Basket support Grants 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0%
Non-Bank Borrowing/ roll over 4.1% 3.9% 2.8% 2.8% 2.1% 2.0% 1.9% 1.8%
Bank Borrowing (Financing) 1.1% 0.7% 2.3% 0.3% 2.2% 1.2% 1.1% 1.3%
Adjustment to Cash -0.7% -0.8% 0.3% -0.9% -0.5% 0.0% 0.2% 0.0%
Non-Concessional borrowing 1.1% 1.2% 0.9% 1.3% 2.0% 2.0% 1.4% 1.6%
II. TOTAL EXPENDITURE 22.4% 21.7% 20.7% 20.6% 21.2% 24.5% 21.7% 22.0%
Recurrent Expenditure 16.0% 15.5% 14.2% 14.1% 13.5% 15.3% 13.9% 14.1%
CFS 7.6% 7.8% 6.9% 6.9% 6.3% 6.9% 6.2% 6.0%
Debt service 6.4% 6.6% 5.8% 5.8% 5.4% 5.7% 5.1% 4.8%
CFS Others 1.2% 1.1% 1.1% 1.1% 0.9% 1.2% 1.0% 1.2%
Recurrent Exp. (excl. CFS) 8.4% 7.7% 7.3% 7.2% 7.2% 8.4% 7.7% 8.1%
o/w Wages and Salaries 4.9% 4.5% 4.3% 4.1% 4.0% 4.5% 4.1% 4.6%
Parastatal PE 0.7% 0.6% 0.7% 0.7% 0.8% 0.8% 0.7% 0.6%
LGAs Own Sources 0.2% 0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%
Other Charges 2.5% 2.4% 2.0% 2.0% 2.1% 2.8% 2.5% 2.5%
Development Expenditure 6.4% 6.2% 6.4% 6.5% 7.7% 9.2% 7.8% 8.0%
Local 4.5% 4.4% 4.9% 4.8% 6.1% 7.3% 6.1% 6.5%
Foreign 1.9% 1.8% 1.5% 1.7% 1.6% 1.9% 1.7% 1.4%
Annex 2b: Budget Frame for the year, As Percentage of GDP, 2016/17 – 2022/23
Source: Ministry of Finance and Planning
98
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2021/22 2022/23
Actual Actual Actual Actual Actual Budget Likely Budget
Grants 190,303 246,688 0 265,338 0 0 0 55,530
Concessional Loans 152,482 0 125,396 126,094 210,239 1,310,650 1,310,650 1,893,949
Total 342,785 246,688 125,396 391,433 210,239 1,310,650 1,310,650 1,949,480
Grants 168,984 117,166 181,378 181,091 175,364 222,570 233,699 –
Concessional Loans 104,991 74,681 44,281 166,027 77,107 59,736 52,090 122,123
Total 273,975 191,847 225,659 347,118 252,471 282,306 285,788 122,123
Grants 674,938 635,704 707,797 481,419 527,488 915,506 942,971 923,836
Concessional Loans 1,182,461 1,220,481 1,115,041 2,340,232 1,669,866 1,758,111 1,802,064 1,653,122
Total 1,857,399 1,856,185 1,822,839 2,821,650 2,197,354 2,673,617 2,745,035 2,576,958
Grand Total 2,474,159 2,294,720 2,173,893 3,560,201 2,660,063 4,266,574 2,955,923 4,648,561
Source: Ministry of Finance and Planning
Annex 3: External Loans and Grants 2016/17 – 2022/23
Tshs M illion
General budget Support
Baskets Funds
Projects
99
2020/21 2021/22 2022/23 - Total of New External and Domestic Borrowing (a+b) 9,864,927.3 11,162,737.1 12,483,346.2
(a) New Domestic Borrowing 4,904,247.6 4,989,132.9 5,780,148.1
(i) New Domestic Borrowing (Rollover) 3,316,078.4 3,150,336.7 3,300,000.0
(ii) Net Domestic Financing 1,588,169.2 1,838,796.2 2,480,148.1
(b) New External Borrowing 4,960,679.7 6,173,604.2 6,703,198.1
(i) Concessional Projects Borrowing 1,925,049.7 1,817,847.0 1,775,245.2
(ii) Concessional General Budget Support – 1,310,650.2 1,893,949.4
(iii) Non – Concessional 3,035,630.0 3,045,106.9 3,034,003.6
(c) Amortization of Domestic Debt 4,946,747.0 4,711,974.1 5,070,159.0
(i) Principal – Rollover 3,316,078.4 3,150,336.7 3,300,000.0
(ii) Interest Payments 1,630,668.6 1,561,637.4 1,770,159.0
(d) External Debt Services 3,703,194.5 4,166,445.8 4,016,843.5
(i) Interest 1,239,913.8 1,151,376.3 1,100,802.0
(ii) Principle 2,463,280.6 3,015,069.5 2,916,041.5
(e) Net Domestic Debt Increase (a-c(i) 1,588,169.2 1,838,796.2 2,480,148.1
(f) Net External Debt Increase (b-d(ii) /1 2,497,399.1 3,158,534.7 3,787,156.7 - Net Increase on Domestic and External Debt (e+f) 4,085,568.3 4,997,330.9 6,267,304.7
Annex 4: Governement Borrowing Trend (Shillings M illion)
/1 The increase does not include future disbursement from existing loans
Source: Ministry of Finance and Planning
100
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Figure 1: Domestic Revenue as Percentage of GDP
2016/17 – 2022/23
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Customs Duty Excise DutyImports
Excise DutyLocal
VAT- Imports VAT- Local Income Tax Other Taxes Non Tax
Revenue
LGAs own
source
Billion Shillings
Figure 2:
Composition of Domestic Revenue
2021/22 – 20222/23
2021/22 2022/23
101
Domestic and
External Borrowing
(Including Rollover)
21%
Grants and
Concessional Loans
from Development
Patners
11%
Domestic Revenue
(Including LGAs)
68%
Figure 3a: Source of Funds in 2022/23 Budget
Total Resources Tshs. 41,480,580.
Domestic and
External Borrowing
(Including Rollover)
21%
Grants and
Concessional Loans
from Development
Patners
11% Domestic Revenue
(Including LGAs)
68%
Figure 3b: Source of Funds in 2021/22 Budget
Total Resources Tshs. 37,992,548
102
Development
Expenditure
36%
Wages and Salaries
24%
Other Charges
13%
Employer’s Contr. To
Pension Funds and
Other
5%
Government Debt Repayment
22%
Figure 4a: Government Expenditure 2022/23
Total Tshs. 41,480,580
Development
Expenditure
38%
Wages and Salaries
21%
Other Charges
13%
Employer’s Contr.
To Pension Funds
and Other
5%
Government Debt Repayment
23%
Figure 4b Government Expenditure 2021/22
Total Tshs. 37,992,548
103
Annex 5
THIRTEENTH SCHEDULE
(Made under Regulation 22)
IMPORT AND EXPORT FEE FOR ANIMAL AND ANIMAL PRODUCTS
Serial
No.
Animal / Animal
products
Unit of charge Import fees
(Tshs)
Export fees
(Tshs)
Current Proposed Current Proposed
1 Cattle Each 10,000 0 25,000 25,000
2 Sheep/goat Each 7,000.00 0 5,000.00 5,000.00
3 Pigs Each 7,000.00 0 10,000.00 10,000.00
4 Mule/Donkeys Each 5,000.00 0 30,000.00 30,000.00
10 Poultry
(A) Parent Stock
(i) Parent stock
DOC
Each 30.00 0 20.00 20.00
(i) Hatching eggs Each 20.00 0 10.00 10.00
(C) Table eggs Per tray (30 eggs) 5,000.00 5,000.00 100.00 10.00
(D) Poultry: adult
chicken/guinea fowls
Each 500.00 500.00 200.00 20.00
19 Meat
(i) Beef Kilogram (Kg) for imports,
Consignment for exports
4,000.00 3,000.00 40,000.00 40,000.00
(ii) Mutton/ chevon Kilogram (Kg) for imports,
Consignment for exports
4,000.00 3,000.00 40,000.00 40,000.00
104
(iii) Pork /bacon/lard Kilogram (Kg) for imports,
Consignment for exports
4,000.00 3,000.00 20.00 20.00
(iv) Chicken meat Kilogram (Kg) for imports,
Consignment for exports
4,000.00 3,000.00 40,00.000 40,000.00
(v) Game Meat Kilogram (Kg) 4,000.00 4,000.00 500.00 500.00
21 Milk
(i) Pasteurized whole
milk
Litre 2,000.00 1000.00 100.00 50.00
(ii) Skimmed Litre 2,000.00 1000.00 100.00 50.00
(iii)Yoghurt Litre 2,000.00 1000.00 50.00 50.00
(iv) Powdered Kilogram (Kg) 2,000.00 1000.00 100.00 50.00
28 Incubator Permit 50,000.00 0.00 10,000.00 0.00
30 Livestock
Identification items
including ear tags and
ear tags aplicatiors
Permit 50,000.00 0.00 50,000.00 0.00
b). by deleting item 41, 42, 43, 44 and 45 of the thirteenth schedules. Recommended
c). by re-arranging item 46 to be 41 – Recommended
- The principal Regulations are amended by deleting item 1 for registration in the Fifteenth Schedule and
improve item 3 by adding a word ‘grazing fee”.
FIFTEENTH SCHEDULE
105
(Made under regulation 21)
FEE FOR QUARANTINE, ANIMAL HOLDING GROUNDS AND CHECK POINTS
S/N SERVICE ANIMAL FEES (Tshs)
Current Proposed
1 Registration Cattle 500.00 0.00
Sheep/Goat 500.00 0.00
Horse/Donkey 500.00 0.00
Camel 500.00 0.00
3 Accommodation and
grazing fees per day
Cattle 1,000.00 1,000.00
Sheep/Goat 500.00 500.00
Horse/Donkey 1,000.00 1,000.00
Camel 1,000.00 1,000.00
Dog/Cat 500.00 500.00 - The principal Regulations are amended by deleting the Sixteenth Schedules on movement permit fees
for animals and animal products on-transit to other countries.
SIXTEENTH SCHEDULE
(Made under regulation 22A)
MOVEMENT PERMIT FEES FOR ANIMALS AND ANIMAL PRODUCTS ON-TANSIT TO OTHER COUNTRIES
S/N ITEM NUMBER UNIT FEES (TSHS) - Cattle Each 2,500.00
- Sheep/goats each 1,500.00
- Pigs each 1,500.00
- Horse/mule/donkey Each 2,500.00
- Dogs/Cats Each 1,000.00
- camel Each 2,500.00
- Poultry adult/Guinea fowls Each 200.00
- Commercial Day-Old chick 100 chicks 1,000.00
106 - More than 100 trays of table eggs 30eggs tray 500.00
- More than ten trays of parent stock hatching
eggs of hatching eggs
each 1,000.00 - Turkey each 1,000.00
- Parrot /falcon /ostrich each 15,000.00
- Wild birds each 500.00
- rabbits each 500.00
- Amphibians/reptiles/insects permit 20,000.00
- Laboratory Animals permit 30,000.00
- Wild Animals Each 1,000.00
- Trophies permit 30,000.00
- Meat/meat products of more than 50 kilogram kilogram 50.00
- Sausage/minced meat/other meat products kilogram 50.00
- Bile Permit 50.000.00
- Bull-whip/testicle/tendons Permit 200,000.00
- Milk Litre 500.00
- Yogurt Litre 2,000.00
- Powdered milk Kilogram 4,000.00
- Cheese/ghee Kilogram 2,000.00
- Hides Per piece 500.00
- Skin Per piece 100.00
- Cattle/Goat/Sheep horn tips/Hooves/Hairs Tone 10,000.00
- Feathers/ Wool/Hairs Permit 20,000.00
- Animal feeds Tone 10,000.00
- Organic Manure Tone 5,000.00
- Embryos Each 5,00.00
- Semen Straw 50.00
- Specimen Permit 20,000.00
- Laboratory reagents/equipment Permit 300,000.00
- Livestock identification items (ear tags, etc) Permit 200,00.00
107
THE MEAT INDUSTRY ACT
(Cap. 421)
REGULATIONS
(Made under section 34)
THE MEAT INDUSTRY (LOCATION, DESIGN, CONSTRUCTION AND OPERATION OF LIVESTOCK MARKETS) (AMENDMENT)
REGULATIONS 2022
Citation and
commencement
GN No. 38 of 2011
(i)
(ii) These Regulations may be cited as the Meat Industry (Location, Design, Construction and
Operation of Livestock Markets) (Amendment) Regulations 2022 and shall be read as one
with the Meat Industry (Location, Design, Construction and Operation of Livestock
Markets) (Amendment) Regulations 2011 hereinafter referred to as the Principal
Regulations and shall come into operation on 1st July, 2022
(iii) The second schedule is amended by deleting the schedule and substituting for it with the
following:
SECOND SCHEDULE
(Made under Regulation 13)
FEES PAYABLE FOR TRADE OF LIVESTOCK
SALE OF ANIMALS (MARKET USER FEES)
(a) Primary Markets:
Type of Fee Central Government TZS
(Proposed)
Local Government TZS Total Fee Payable TZS
(i) Fee payable for each head of cattle,
camel, horse and donkey
1,000 4,000 5,000
(ii) Fee payable for each head of goat,
sheep and pig.
500 1,000 1,500
(b) Upgraded primary market to secondary and border markets (new arrangement):
Type of Fee Central Government Local Government Total Fee Payable
(i) Fee payable for each head of cattle,
camel, horse and donkey
1,000 4,000 5,000
(ii) Fee payable for each head of goat,
sheep and pig
500 1,000 1,500
108
(c) Secondary markets (Reference Table of ongoing Fee):
Type of Fee Central Government Local Government Total Fee Payable
i.) Fee payable for each head of cattle,
camel, horse and donkey
4,000 1,000 5,000
ii.) Fee payable for each head of goat,
sheep and pig1,000 500 1,500
(d) Boarder Markets (Reference table of ongoing Fee):
Type of Fee Central Government Local Government Total Fee Payable
(i) Fee payable for each head of cattle,
camel, horse and donkey
4,000 1,000 5,000
(ii) Fee payable for each head of goat,
sheep and pig.
1,000 500 1,500
109
Annex 6
PROPOSED AMMENDMENTS OF THE FISHERIES REGULATIONS OF 2020 GN 491A ON EXPORT LICENCING FEE, EXPORT AND
IMPORT ROYALTY OF FISH AND FISHERY PRODUCTS (table G – export license fee and H-export royalty)
S/N Type of licensing fee/export
and import royalty
Tanzanian citizens
Export Licensing fees (USD)
Non-Citizen
Export license fees
(USD)
Current Proposed Current Proposed
1 Export license fees for dried
dagaa of Lake Tanganyika
250 USD for small
scale processor
250 USD combined the three
fishery products
dried/fresh/frozen dagaa
2,500 USD 2500 USD combined
the three fishery
products
dried/fresh/frozen
dagaa
500 USD for large scale
processor
500 USD combined the three
fishery products
dried/fresh/frozen dagaa
2 Export license fees for
Haplochromis and dagaa of Lake
Victoria
250 USD for small
scale processor
250 USD combined the three
fishery products
dried/fresh/frozen dagaa
2,000 USD 2000 USD combined
the three fishery
products
dried/fresh/frozen
dagaa
500 USD for large
scale processor
500 USD combined the three
fishery products
dried/fresh/frozen dagaa
3 Export license fees for dagaa of
Lake Nyasa
250 USD for small
scale processor
250 USD combined the three
fishery products
dried/fresh/frozen dagaa
2,000 USD 2000 USD combined
the three fishery
products
dried/fresh/frozen
dagaa
500 USD for large
scale processor
500 USD combined the three
fishery products
dried/fresh/frozen dagaa
4 Export license fees for dagaa of
Marine Waters
250 USD for small
scale processor
250 USD combined the three
fishery products
dried/fresh/frozen dagaa
2000 USD 2000 USD combined
the three fishery
products
dried/fresh/frozen
dagaa
500 USD for large 500 USD combined the three
110
S/N Type of licensing fee/export
and import royalty
Tanzanian citizens
Export Licensing fees (USD)
Non-Citizen
Export license fees
(USD)
Current Proposed Current Proposed
scale processor fishery products
dried/fresh/frozen dagaa
5 Export Licence Fee for dried
fish/ fishery products from salty
lakes (Eyasi, Manyara and
Natron), and Lake Rukwa,
Nyumba ya Mungu, Mtera and
Bahi Swamp
500 USD for small
scale processor
300 USD for small scale processor Prohibited Prohibited
700 USD for large
scale processor
400 USD for large scale processor
6 Export licence of With or without
Head and Gutted Whole Nile
Perch” (H&G)
1000 USD for small
scale processor
700 USD for small scale processor 2,500 USD 2,500 USD
1200 USD for large
scale processor
1000 USD for large scale processor
7 Sea shells (all types except
prohibited Species)
300 USD for small
scale processor
150 USD Prohibited 700 USD
350 USD for large
scale processor
300 USD
8 Frozen Prawns 500 USD for frozen
prawns head on for
small scale
500 USD combined the two
fishery products (head on and
headless)
2,500 USD
head on
2,500 USD combined
the two fishery
products (head on and
headless)
500 USD for frozen
prawns headless for
small scale processor
2,500 USD
headless
1000 USD for frozen
prawns’ head for large
scale processor
1000 USD combined the two
fishery products (head on and
headless)
1000 USD for frozen
prawns headless for
large scale processor
9 Export License for live crabs and
lobster Live lobster 500 USD 500 USD combined lobster and crabs prohibited prohibited
Live crabs 500 USD
111
S/N Type of licensing fee/export
and import royalty
Tanzanian citizens
Export Licensing fees (USD)
Non-Citizen
Export license fees
(USD)
Current Proposed Current Proposed
1000 USD Large scale
processor for lobster
1000 USD combined lobster and
crabs
1000 USD large scale
processor for crab
1
0
Export License for frozen crab
and lobster 500 USD for frozen lobster for small scale
processor
500 USD combined for frozen
lobster and crabs
2500 USD
for frozen
lobster
2500 USD combined
for frozen lobster and
crabs
500 USD for frozen
crabs for small scale
processor
2500 USD
for frozen
crabs
1000 USD large scale
processor for lobster
1000 USD combined for frozen
lobster and crabs
1000 USD large scale
processor for crabs
1
1
Export license for frozen
Octopus/Squids/cuttlefish 500 USD for small scale processor frozen
Octopus
500 USD Frozen Octopus and
Squids/Cutlle fish
2500 USD
for frozen
Octopus
2500 USD for frozen
Octopus and
Squids/Cutlle fish
500 USD for small
scale processor
Squid/Cuttle fish
2500 USD
for
Squid/Cutt
le fish
1000 USD for large
scale processor for
octopus
1000 USD Frozen Octopus and
Squids/Cutlle fish
1000 USD for large
scale processor for
112
S/N Type of licensing fee/export
and import royalty
Tanzanian citizens
Export Licensing fees (USD)
Non-Citizen
Export license fees
(USD)
Current Proposed Current Proposed
Squid/Cuttle fish
1
2
Import License fee for
crustacean/cephalopods/Mollus
c
2500 USD 250 USD 5000 USD 3000 USD
1
3
Cardina spp (Fresh water
shrimps)
300 USD for small
scale processors
200 USD for small processors Prohibited
500 for large processors 500 for large processors Prohibited
1
4
Cardina spp marine water
shrimps)
300 for small scale
processors
200 USD for small processors in
marine waters
Prohibited
500 for large processors 500 for large processors in
marine waters
Prohibited
1
5
Import fee for
crustacean/cephalopods 2.5 USD per kg 0.5 USD per kg 2.5 USD per kg 0.5 USD per kg
1
6
Export royalty fees for dagaa of
Lake Tanganyika 0.5 USD per kg for dried dagaa 0.3 USD per kg for dried/fresh/frozen dagaa 0.5 USD per kg for dried dagaa 0.3 USD per kg for dried/fresh/frozen dagaa
1
7 Export royalty fees for Haplochromis (furu) and dagaa of
lake Victoria
0.16 USD per kg for
dried dagaa
0.1 USD per kg for
dried/fresh/frozen dagaa/furu
0.16 USD
per kg for
dried dagaa
0.1 USD per kg for
dried/fresh/frozen
dagaa/furu
1
8 Export royalty fees for frozen/dried dagaa of lake Nyasa 0.16 USD per kg for dried dagaa 0.1 USD per kg for dried/fresh/frozen dagaa 0.16 USD per kg for dried dagaa 0.1 USD per kg for dried/fresh/frozen dagaa
1
9 Export royalty fees for frozen/dried dagaa of marine
waters
0.16 USD per kg for
dried dagaa
0.1 USD per kg for
dried/fresh/frozen dagaa
0.16 USD
per kg for
dried dagaa
0.1 USD per kg for
dried/fresh/frozen
dagaa
2
0 Export royalty fee for dried fish/ fishery products from salty lakes
(Eyasi, Manyara and Natron), and
Lake Rukwa, Nyumba ya Mungu,
Mtera and Bahi Swamp
0.2 USD per kg 0.08 USD per kg Prohibited Prohibited
113
S/N Type of licensing fee/export
and import royalty
Tanzanian citizens
Export Licensing fees (USD)
Non-Citizen
Export license fees
(USD)
Current Proposed Current Proposed
2
1 Export royalty fees With or without Head and Gutted Whole
Nile Perch” (H&G)
0.21 USD per kg for
without Head and
Gutted Nile Perch”
(H&G)
0.18 USD per kg for headed and
gutted Nile perch (H&G)
0.21 USD
per kg for
without
Head and
Gutted Nile
Perch”
(H&G)
0.18 USD per kg for
headed and gutted
Nile perch (H&G)
0.25 USD per kg Whole
Gutted Nile Perch”
deleted
- –
2
2 Export Royalty for Fish Steak/ Fillets 0.2 USD per kg 0.1 USD per kg
2
3 Export Royalty for Fish Maws 4% of market value for dried fish maws per kg 3.3 USD per kg 4% of market value for
dried fish
maws per
kg
3.3 USD per kg
4% of market value for
fresh and frozen fish
maws per kg
2.70 USD per kg 4% of
market
value for
fresh and
frozen fish
maws per
Kg
2.70 USD per kg
Definition:
‘’Citizen company’’ means a company which is owned by a person or all owners/shareholders/drectors of a company or partners of registered
business are Tanzanians;
‘’Non-Citizen company’’ means a company which is owned by a person or one of the owner(s)/shareholder(s)/director(s) is/are not Tanzanians;
114
‘’Large Scale processor’’ means a processor with Certificate of Incorporation issued by BRELLA and the owner(s) is registered as Directors, and
has an approved fish processing establishment;
‘’Small Scale processor’’ means a processor with Certificate of Incorporation issued by BRELLA and the owner(s) is recognized as a proprietor,
and has an approved fish establishment or entered into legal agreement with an approved fish establishment for processing or storage of fish and
fishery products’’
Proposed Fee for Movement Permit.
S/N Category Range (Kgs) Charges/Fees
(Tshs)
1 Permit for movement of fish and
fishery products (dagaa, furu,
dried/frozen/chilled fish)
i) Dried fish and fishery
products
0 – 500 kg Free
501 kg and above 10 TZS per kg
Any excess undeclared 100 TZS per kg
ii) Frozen/Chilled/
Fresh fish and fishery product
0 – 1000 kgs Free
1001kg and above 10 TZS per kg
Any excess undeclared 200 TZS per kg
115
Annex 7
TANZANIA ATOMIC ENERGY COMMISSION – TAEC
MATRIX OF THE ATOMIC ENERGY (FEES AND CHARGES) REGULATIONS
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
01 Fourth Schedule –Fees
for radioactivity analysis
of food chain and related
commodities
(Regulations 7)
A. For Imports of Food Chain Materials, Tobacco and Tobacco Products
i. Tanzania shilling 35,000/= for
import consignment whose
Freight on Board value does
not exceed equivalent of
Tanzanian shillings ten million
0.4 percent of the Freight on
Board value for all
consignment with Freight on
Board value above Tanzanian
shillings 10 million up to
equivalent of Tanzanian
shillings one billion.
i. Import consignment not
exceeding FoB of TSHS
1,000,000 will be analyzed
free of charge (100%
reduction);
ii. 0.4 percent of the Freight on
Board value for all import
consignment above
Tanzanian shillings
1,000,000/= up to one
billion and a limit of
Tanzania shillings four
million for consignment
whole Freight on Board
value is above to an
equivalent of Tanzanian
shillings one billion
There are reasons for charging using FoB
values:
i. The FOB model is cheaper. The cost for
sampling and analysis of the
consignment using FOB value give
relief to business community than any
other means.
The cost of analysing one sample is
Tsh. 428,000 as such business
community would be very expensive.
Note that one consignment might need
several samples depending on the
volume or quantity of food chain
materials. For example, simulation
shows that the quantity-based model
for a consignment of FoB value of Tshs.
41,894,000 which weigh 260MT is
Tshs 83,000 while the quantity model
would attract a charge of Tshs.
910,000 which is equivalent to an
increase of 1096%
ii. Quantity based charging does not
facilitate trade for the customers with
bulk consignment. This means the
larger the consignment the more the
samples would be needed. Using FoB
value is cheaper because same amount
is charged irrespective of the number of
samples taken in a specific
consignment. But using quantity
method each sample will be charged
ii. Tanzania shillings four million
for consignment whole Freight
on Board value is above to an
equivalent of Tanzanian
shillings one billion.
116
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
and make this method very expensive
for the clients. For example, in a year
TAEC analyses 28,000 samples and if
each sample is to be charged
428,000/= will results to 11.96B which
is almost twice the current practice
when using FoB. Therefore, with
quantity method customer loose the
benefit of lower charges offered by
TAEC and would need to pay more
than when the FoB is used.
iii. The FOB model is efficiency because
there is no need to confirm declared
quantity as such is time and money
saving.
iv. FOB model increase transparency on
sampling process since there is no
possibility for negotiation between the
sampler and the customer.
Other benefits of proposed
amendments:
i. These charges were used since 2011
and therefore do not reflect the current
practices.
ii. To facilitate trade and create better
environment to small business traders
where the trader who is currently
paying 35,000/- for the importation of
a consignment with FOB value less
than 1,000,000 will not pay anything;
the trader whose consignment value is
1,000,001/= will pay 4,000/= instead
of 35,000/=; the trader whose
consignment value is 5,000,000/= will
pay 20,000 /= instead of 35,000/= and
117
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
still the limit holds for higher values.
iii. To continue protecting the public and
environment from harmful effect of
radiation through performing
regulatory activities (sampling, sample
analysis, inspection, authorization) of
imported foodstuffs.
B. For exports of Food Chain Materials including fertilizers, tobacco and tobacco products, and
imported relief food
i. Tanzania shilling 35,000 for
Export consignment whose
Freight on Board value does
not exceed equivalent of
Tanzanian shillings twenty
million.
i. Export consignment not
exceeding 2000 US dollar will
be analyzed free of charge
(100% reduction);
ii. 0.1 percent of the Freight on
Board value for all
consignment with Freight on
Board value above two
thousand US dollar up to an
equivalent of Tanzanian
shillings one billion (Reduced
by 50%) and a limit of
Tanzania shillings two million
for consignment whole
Freight on Board value is
above to an equivalent of
Tanzanian shillings one
billion.
iii. 0.1 percent of the Freight
on Board value for the value
added finished products
(Reduced by 50%) and a
limit of Tanzania shillings
two million for consignment
whole Freight on Board
value is above to an
equivalent of Tanzanian
There are reasons for charging using FoB
values:
i. The FOB model is cheaper. The
cost for sampling and analysis of
the consignment using FOB value
give relief to business community
than any other means. The cost of
analysing one sample is Tsh.
428,000 as such business
community would be very
expensive. Note that one
consignment might need several
samples depending on the volume
or quantity of food chain materials.
For example, simulation shows
that the quantity based model for a
consignment of FoB value of Tshs.
41,894,000 which weigh 260MT is
Tshs 83,000 while the quantity
model would attract a charge of
Tshs. 455,000 which is equivalent
to an increase of 548%.
ii. Quantity based charging does not
facilitate trade for the customers
with bulk consignment. This
means the larger the consignment
the more the samples would be
needed. Using FoB value is
iv. 0.2 percent of the Freight on
Board value for all
consignments with Freight on
Board above Tanzanian
shillings 20 million up to
equivalent of Tanzanian
shillings one billion
v. Tanzania Shilling two million
for consignment whole
Freight on Board value is
above to an equivalent of
Tanzania Shillings one billion
118
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
shillings one billion cheaper because same amount is
charged irrespective of the number
of samples taken in a specific
consignment. But using quantity
method each sample will be
charged and make this method
very expensive. For example, in a
year TAEC analyses not less than
28,000 samples and if each sample
is to be charged 428,000/= will
results to 11.96B which is almost
twice the current practice when
using FoB. Therefore, with
quantity method customer loose
the benefit of lower charges offered
by TAEC and would need to pay
more than when the FoB is used.
iii. The FOB model is efficiency
because there is no need to
confirm declared quantity as such
is time and money saving.
iv. FOB model increase transparency
on sampling process since there is
no possibility for negotiation
between the sampler and the
customer
v. The charge of 0.1% has been
obtained aiming at encouraging
exports of value-added finished
products
vi. Protecting the foreign market of
our products and therefore
stimulate our economy.
vii. To enable TAEC to control illicit
trafficking and nuclear security
119
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
issues such as sabotage and
malicious acts.
viii. To enable TAEC to control
contamination from naturally
occurring radioactive materials in
the environment such as Uranium
and Thorium.
Other benefits for the proposed change
include:
ix. These charges were used since
2011 and therefore do not reflect
the current practices.
x. To facilitate export trade and
create better environment to small
business traders, whereby the
trader who is exporting a
consignment with FOB value less
than 5,000,000/= (USD 2000) was
supposed to pay 35,000/= but the
samples will be analyzed free of
charge/= (not pay anything) and
the trader whose consignment
value is 20,000,000/= was
supposed to pay 40,000/= but it is
proposed to pay only 32,000/= and
still the limit holds for higher
values.
xi. To continue fulfilling the
international requirements and
standards (FAO/WHO/IAEA/WTO)
for the exporting country to ensure
safety of food chain material as
such avoid international trade
cases.
120
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
xii. Protecting the public and
environment from harmful effect of
radiation through performing
regulatory activities (sampling,
sample analysis, inspection,
authorization) of exported
foodstuffs
C. For all manufacturers, processors and milling of Food chain materials, Tobacco and Tobacco
products and possess and use underground and reservoir waters
A) Radioactivity analysis fees
per annum as follows:
i. Free for Micro Enterprises
and Small Enterprises
(SMEs)
ii. Tanzania shillings two
hundred and fifty
thousand for Medium
Enterprises (MSEs).
iii. Tanzania shillings three
hundred thousand
(300,000/=) for Large
Enterprises (LE)
NOTE:
According to the Small and
Medium Enterprise
Development Policy (2003),
Tanzania defines categories of
enterprises as follows:
- Micro Enterprises as up to 4
employees or up to 5 Million
investments in Machinery
i. The proposed lower fees will enhance
traders to comply and create a cost
sharing mode. Taking into account that
the cost for sampling and analysis one
sample is estimated to be TZS 428,000.
For every manufacturer and processor
will require more than one sample per
year depending on the scale of
manufacturing and processing of food
stuffs, Tobacco and Tobacco products.
ii.To contribute to empowering TAEC in
controlling the danger of radiations as
per Section 30 and 31 of the Atomic
Energy Act.
iii. To continue protecting the public
and environment from harmful effect of
radiation through performing regulatory
activities (sampling, sample analysis,
inspection, authorization)
121
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change - Small enterprises are mostly
formalized undertakings
engaging between 5 and 49
employees or with capital
investment from TZS 5
million to TZS 200 million. - Medium enterprises employ
between 50 and 99 people or
use capital investment from
Tshs.200 million to TSHS
800 million. - Large enterprises employ at
least 100 people or have
machinery investment above
TSHS 800 million.
B) For radioactivity analysis
license to possess and use
underground and reservoir
waters, water reservoir
Tanzania shillings
50,000/= per unit in every
three years.
Contamination from natural occurring
radioactive materials is likely to affect the
citizens using underground and reservoir
waters, thus protection of citizens is of
great importance.
02 First Schedule for
Licensing/Registration
of Various Practices
(Regulations 4) - Medical and non-medical applications (Radiation Generating Devices and Radiation Sources),
research clearance and scrap metals
Authorization to use and or
possess Medical Diagnostic
Equipment:
i. X-ray machine and
dermatology- Up to 2 units
150,000/= with an increase
of 25% for each additional
unit
i. For authorization to use and
possess, operate, hire,
Import, export or transfer of
medical diagnostic
equipment shall be charged
Tshs. 200,000/= per unit
ii. For authorization to use and
i To meet the cost servicing an X-ray
machine which is 1,700,000 per unit
and CT scan which is 3,000,000 per unit
per annum. The same applies to other
practices.
ii These charges were used since 2011 and
therefore do not reflect the current costs.
122
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
ii. Authorization to use and or
possess therapeutic
(teletherapy and
brachytherapy) and
biological irradiation
facilities 200,000/= per unit
possess, operate, hire,
Import, export CT scanner,
therapeutic (teletherapy and
brachytherapy), angio-suite,
MRI, Nuclear Medicine, PET
CT and biological irradiation
facilities shall be charged
Tshs 300,000/= per unit
iii. For authorization to use and
possess, operate, hire,
Import, export transfer nonmedical radiation emitting
equipment, device,
communication base
stations, premises for
storage of radiation sources,
and research clearance shall
be charged Tshs 300,000/=
per unit/ research
iii To reduce number of categories of
charges in order to simplify handling.
iv To reduce the cost of cancer diagnostic
and treatment to enable patients to
access services and thus to stimulate
early diagnosis and minimize or prevent
the growing of cancer cases.
v To enable TAEC to continue protecting
workers, patients, public and
environment through conducting
regulatory activities (inspection,
reviews, authorization, enforcement) to
medium risk radiological practices.
vi To facilitate the regulatory processes of
research clearance, permit on peaceful
application of nuclear technology as per
section 53. of Atomic Energy Act. No 7
2003
iii.Authorization to use and or
possess X-ray equipment
used for level detection and
sorting of minerals
150,000/= per unit
iv. Possess and use CT scanner
150,000/= per unit
v. Authorization to use and or
possess X-ray and or
radioactive materials for Non
Destructive Testing
200,000/=
vi. Authorization to use and or
possess fixed/portable
nuclear gauges for level
measurement, density
measurement, thickness
control, moisture
measurement and control
and in-stream analysis of
slurries 200,000/=
vii. Authorization to import
and or export therapeutic
(teletherapy and
brachytherapy) and
biological irradiation
facilities 300,000/= per unit
viii. Authorization to import
and or export Medical
diagnostic Equipment: a) Xray machine and
dermatology 120,000/= and
CT Scanner 200,000/= per
123
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
unit
ix. Authorization to import and
or export fixed or portable
nuclear gauges for level
detection, density
measurement, thickness,
control moisture
measurement and control in
stream analysis of slurries
200,000/= per unit
x. Authorization to import and
or export Level Detection
and Sorting of Minerals
Authorization to import and
or export 150,000/= per unit
xi. Authorization to import and
or export X-ray
Fluorescence, X-ray
Diffraction and Neutron
Activation Analysis
100,000/= per unit
xii. Authorization to use
and or possess linear
accelerators and or devices
with radioactive sources for
cargo and container
inspection Tshs 600,000 per
unit
i. Tanzania shillings
500,000/= per
unit/consignment for
authorization to use and
possess, Import, Export,
hire, transfer or class4 laser
product, non-medical Linear
Accelerator, cyclotron, Fixed
X-ray or Radioactive Devices
for Non Destructive Testing,
Cargo or Container
Inspection scanner, or and
other devices of considerable
significant high risk, soil
i. These charges were used since 2011
and therefore do not reflect the current
practices.
ii. To reduce categories of charges and to
merged them for smooth managing
complicated procedures
iii. To enable TAEC to conduct regulatory
activities (inspection, reviews,
enforcement) to complex and high risk
radiological practices in order to ensure
safety of workers, the general public and
xiii. Authorization to import
and or export Linear
Accelerator or Radioactive
Devices for Non Destructive
Testing and Cargo, container
inspection 500,000/= per
unit
124
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
xiv. Authorization to import
and or export Linear
accelerators and or Devices
with Radioactive Sources for
cargo and or container
inspection 600,000/= per
unit
samples containing
radioactive materials,
NORMs; and screening of
consignment of scrap metal.
the environment.
iv. To enable TAEC to conduct inspection of
scrap metals in order to search for
radioactive sources and prevent
radioactive sources from entering steel
pool and protect heath of workers,
general public and the environment
xv. Authorization to use
and or possess industrial
irradiation & Nuclear
Reactors –to be determinedby TAEC in consultation
with the Minister
ii. Tanzania shillings
5,000,000/= per unit for
authorization to use and or
possess, hire, transfer,
export, import industrial
irradiation source/facility,
nuclear research reactor,
radioactive minerals and
Tanzania Shillings
10,000,000/= for siting,
construction, operation or
decommissioning of Nuclear
Power Plant.
i. Usually nuclear installation have several
stages which need license and
government commitment.
ii.The proposed charges will increase
efficiency by removing complications
and managing and subjectivity in
decision making as such increase
efficiency in managing radiation safety.
iii. To enable TAEC to conduct regulatory
activities (inspections, reviews,
guidance, enforcement)to more complex
and high risk radiological practices in
order to ensure protection and safety of
occupationally exposed workers, public
and the environment
xvi. Authorization to import
and or export Industrial
Irradiation Sources
5,000,000/= per unit
iii. Additional Tanzania Shilling
1,000,000/= per unit for
authorization to import all
Ionizing and Non-Ionizing
Radiation emitting for
equipment or devices of age
above 8 years since
manufactured (NEW)
i To discourage aged materials/devices
and protect the environment from
dumping. For example, importing a
device with radioisotope Americium-241
used in water industries, breweries,
beverages, road construction etc have
half half-life of 432.2 years and will need
4322 years for safe disposal to the
environment. For the device with
caecium-137 with hall-life of 30 years
will need 300 years for safe disposal to
the environment
125
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
ii To enable TAEC to conduct regulatory
processes (registration, inspections,
reviews, guidance, authorization) to the
imported/exported radiation sources - Registration of qualified personnel, Technical Service Providers and License to Transport Radioactive
Sources
i. Tanzania Shillings
50,000/= for the
registration of qualified
personnel to administer
ionizing radiation to person(
charged for 5yrs)
i. Free of charge for qualified
personnel to administer
ionizing radiations to
persons
ii. For every 5 years Tanzania
Shillings 50,000/= for
registration of qualified
personnel to operate,
install, repair and
maintenance radiation
devices or apparatus or
plant
i. Monitoring of qualified personnel is very
important to ensure that personnel
administering ionizing radiation to
personnel are qualified.
ii. In the current practice the charges is
paid by the hospitals therefore removing
it will reduce medical expenses to the
public
iii. To continue protecting workers, patients
public, and environment from harmful
effect of radiation through performing the
regulatory activities
ii. Tanzania shillings
1,000,000/= per
consignment for
Authorization to transport
Category 1 to 3 radioactive
material within and on
transit through Tanzania
iii. Tanzania shillings
1,000,000/= for
Authorization to transport
Category 1 to 5 radioactive
material, Mineral
containing radioactive
materials and NORMs
within and /or on transit
through Tanzania, and
provision of technical
services such as, Personnel
dosimetry services,
workplace monitoring
services, standards
calibration services,
environmental monitoring
services, radio analytical
measurements, repair and
maintenance of nuclear
equipment, Supplier of
i. To continue protecting workers, public,
and the environment from harmful
effects of radiations through conducting
regulatory activities (inspections,
reviews, enforcements, etc) in
authorization to transport radioactive
materials, radioactive minerals, NORMs
and technical services
ii. To enable TAEC to monitor technical
services and enhance safety in technical
service involving nuclear applications
and during transport radioactive
sources
126
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
radiation devices,
Transporters of radioactive
materials, Storage of
radiation devices, storage
of Radioactive Waste,
Radiation Protection
Training Services providers,
Quality Assurance and
Quality Control Services
providers. (Excluding
reimbursable). - Second schedule PreAuthorization Inspection
Fees
(Regulation 5)
Non-routine inspection Fee for facility or activity for Medical and Non-Medical Applications (Radiation
Generating Devices and Radiation Sources).
i. Assessment and Inspection of
Radiology X-ray unit, up to 2
units: 100,000/= with an
increase of 25% for each
additional unit
i. Tanzania Shillings
100,000/= per unit for
assessment and Inspection
of Radiology X-ray unit
ii. Tanzania Shillings
200,000/= per unit for
assessment and inspection
of Radiation emitting
equipment, device and base
stations, and radioactive
material storage facility and
other low and moderate risk
practices excluding
reimbursable
i. The current charges have been in use
since 2011 and therefore do not reflect
the current practices.
ii. Simplified management and handling of
fees by merged categories and removed
complications of calculations
iii. To enable TAEC to conduct inspection to
medium risk radiological practices in
order to protect heath of patients,
occupationally exposed workers, and
public from harmful effects of radiation
ii. Assessment and or Inspection
of CT Scanner, Radiotherapy
devices and Nuclear medicine
facilities: up to 2 units:
200,000/= with an increase
of 25% for each additional
unit
iii. Assessment and or Inspection
of Duo diagnostic (both
conventional and
Fluoroscopy) Fluoroscopic
and Mammography units,
baggage screening up to 2
units: 150,000/= with an
increase of 25% for each
additional unit
iv. Assessment and or inspection
of Gamma units for nondestructive testing,
127
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
fixed/portable nuclear gauges
and biological irradiator up to
2 units: 300,000/= with an
increase of 25% for each
additional unit
v. Assessment and or inspection
of teaching and or education
radiation sources up to 2
units: 50,000/= with an
increase of 25% for each
additional unit.
vi. Assessment and or inspection
of Nuclear Analytical
techniques, X ray Fluorescent
Analysis and X-ray Diffraction
up to 2 units: 100,000/= with
an increase of 25% for each
additional unit.
vii. Assessment and or
inspection of linear
accelerators and or devices
with radioactive source for
cargo and or container
inspection up to 2 units:
500,000/= with an increase
of 25% for each additional
unit
iii. Tanzania shillings
500,000/= per unit for
assessment and inspection
of base station, Class 4 laser
products, Linear
Accelerator, Fixed X-ray or
Radioactive Devices for Non
Destructive Testing, Cargo
or Container Inspection
scanner, cyclotron or and
CT scan, MRI, scrap metal
warehouse and other
devices of considerable
significant high risk,
excluding reimbursable.
To enable TAEC to continue protecting the
public, workers and the environment by
conducting inspection to medium risk
radiological practices in order to protect
heath of patients, occupationally exposed
workers, and public from harmful effects of
radiation
viii. Assessment of the plan
for any nuclear power Plant
and or Nuclear Reactor
5,000,000/=
iv. For each
assessment/inspection
during sitting, construction,
commission, operation and
To continue protecting the public, workers
and environment by
i. Enabling TAEC to maintain the quality
128
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
decommission of mines
containing naturally
occurring radioactive
minerals or conventional
mines, Assessment of radon
gas concentrations in
underground mines,
Irradiator facility shall be
charged Tanzania Shillings
5,000,000/=
v. For each assessment and
inspection during sitting,
construction, commission,
operation and decommission
of Nuclear Power, Nuclear
Research Reactor,
Radioactive minerals mine,
processing, disposal and
tailings facility shall be
charged Tanzania shillings
10,000,000/= excluding
reimbursable
of inspection including equipment and
inspectors whose cost of training is
approximately 500,000 Euros in
European union and need quarterly
inspections with different expertise with
not less than 5 inspectors per category
of inspection.
ii. Enabling TAEC to conduct regulatory
inspection to complex/high risk
radiological practices in order to protect
heath of workers, public and the
environment from harmful effects of
radiation
iii. It is important to monitor radon gas in
underground mines to reduce the
biological effect of radon to miners - Third schedule- Fees
and Charges For
Activities Relating to
Prospecting/Exploration,
Mining and Processing of
Radioactive Minerals
(Regulations 6)
ix. Verification in respect of
Decommissioning of
radioactive ore mine and its
processing facilities
100,000,000/= per mine or
processing facility
Twenty million Tanzanian
shillings (20,000,000/) per
annum per facility or
processing facility for
verification in respect of
Decommissioning Process of
radioactive minerals mine and
its processing facilities.
i. To simplify payments to the mining
operators
ii. To align with the government budget
time frame
iii. To continue protecting workers, public
and the environment from harmful
effects of radiations through regulatory
activities (reviews, guidance,
authorization, enforcement) of
decommissioning radioactive ores mine
or ore processing facilities - Fifth Schedule Fees and
charges for other related
activities or services
(Regulation 8)
i. Review of radiation shielding
(External beam radiation)-
(200,000/= per facility for
Diagnostic, (240,000/= for
Therapy), 200,000/= for
Tanzania Shillings 200,000/=
per unit to Provide Structural
Design and layout of diagnostic
X-ray facilities, Review of
radiation shielding radiological
i. To continue enabling TAEC to provide
technical and radiation protection
services to protect heath of workers,
public and the environment from
harmful effects of radiation.
129
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
Industrial) facilities, Perform quality
control tests of diagnostic
radiation equipment, Testing of
integrity of package of
radioactive sources for
transport and maintenance of
survey meters
ii. Quality control tests of
diagnostic X-ray equipmentConventional radiography( Up
to 2 units 100,000/= with an
increase of 25% for each
additional unit, –
Radiographic mammography
and fluoroscopy (Up to 2
units 150,000/= with an
increase of 25% for each
additional unit and CT
scanner(Up to 2 units
200,000/= with an increase
of 25% for each additional
unit
iii. Testing of integrity of package
of radioactive sources for
transport( 150,000/= per
device and 15,000/= for any
additional device
iv. Tanzanian Shillings
100,000/= per unit to Provide
Structural Design and layout
of diagnostic X-ray facilities
i. Tsh 50,000/- or USD 50 for
measurement of sample by
(HPGe) or NaI(Tl) per sample
(i) Tanzania Shillings
100,000/- and 25% discount
for students for measurement
of one sample by either gamma
spectrometry, EDXRF or TXRF.
i. To enable sample preparation, reagents
and consumables sampling, reference
standards sample measurements.
ii. To promote and encourage students
and scientists to engage in science and
technology applications ii. Tsh 34,000/- or 50 USD for
measurement of sample by
XRF per sample.
iii. Tsh 100,000/ Personal
dosimetry services for up to
two TLDs and Tshs.
Tanzania Shillings 100,000/
Personal dosimetry services
per TLD
To enable sample preparation, reagents
and consumables sampling, reference
standards sample measurements.
130
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
34,000/= for each additional
TLD
iv. Tsh 170,000/- per lost TLD. For lost TLD will be charged
per market price of the TLD
To have ability to replacement the lost TLD
and continue with services for monitoring
workers
v. Tsh 100,000/- (resident) or
USD 50 (non- resident) for
calibration of individual and
environmental monitoring
detector up to ten (10)
detectors and Tsh. 34,000/-
(resident) or USD 20 ( nonresident) for each additional
detector
Tanzania Shillings. 150,000/-
or USD 150 (non- resident) for
calibration of radiation Survey
meter, Electronic personnel
dosimeter, individual and
environmental monitoring
detector
i. To ensure the reliability of instruments,
that it can be trusted
ii. To determine the accuracy of
instruments.
iii. To ensure the readings/results are
consisted with other measurements
vi. Tsh. 350,000/-(resident) or
USD 200(non- resident) for
calibration of radiation
Survey meter and Tsh.
350,000/-(resident) or USD
200 (non-resident) for each
additional meter
vii. Tsh. 150,000/- (resident) or
USD 100 (non – resident) for
calibration of Electronic
personnel dosimeter and
Tsh.100,000/=(resident) or
USd 100 (non- resident) for
each additional dosimeter
viii. Tsh. 1,900,000/- for
calibration, repair and
maintenance of Moisture
and density gauges
Tanzania Shillings.
1,900,000/- for calibration,
repair and maintenance of
Moisture and density gauges
excluding reimbursable.
This still caters the cost of calibration of
which clients will continue benefiting the
same price
ix. Tsh. 500,000/= for
consultation services on the
proper use of X-ray
machines
Tanzania Shillings. 500,000/=
for consultation services on the
proper use of X-ray machines
This still caters the cost of consultation
services of which clients will continue
benefiting the same price
x. 5% of FOB value of the
machine or flat rate of
Tanzania Shillings
2,500,000/= for installation,
This still caters the cost of installation
services of which clients will continue
131
S/N Regulation No Current practice Proposed change/
recommendation
Benefit /reasons for the proposed
change
3,500,000/= for installation
of each X-ray machine for
machine which its FOB
value is not known.
repair and maintenance of xray machine excluding
reimbursable
benefiting the same price
xi. 5% of FOB value of the
machine or flat rate of
3,500,000/= for repair and
maintenance of each X-ray
machine for machine which
its FOB value is not known.
xii. Fees for radioactive waste
management
Tanzania Shillings
3,000,000/= shall be charged
for Storage of disused sealed
radioactive sources and
Tanzania
Shillings.1,000,000/= for
conditioning of disused sealed
radioactive sources (excluding
reimbursable)
To facilitate transportation of sources with
special transportation condition and
enhance storage and decommission after
the end of ten half-lives. For example
disposal and conditioning of a device with
caecium-137 radioisotope have hall-life of
30 years and will need to remain under
TAEC custody for 300 years
132
Annex 8
THE FIRE AND RESCUE FORCE ACT,
(CAP. 427)
__
REGULATIONS
(Made under section 32(g))
THE FIRE AND RESCUE FORCE (SAFETY INSPECTION AND CERTIFICATES) (AMENDMENT) REGULATIONS, 2022
S/N PROPOSAL
CURRENT PROPOSED
JUSTIFICATION
ITEM LEVY ITEM LEVY
1
3.TRADE FAIR 3.TRADE FAIR 3.TRADE FAIR
Previous meter
square is not
realistic because
2000m2 is small
compared to reality.
To enlarge the
areas of category
from to 10,000m2
and Above
10,000m2.
Less than or equal
to 2000m2
L12 (700000 –
1000000)
Less than or equal to
10000m2
L12 (700,000 –
1000000)
Above 2,000m2 L15 (1,500,000 – 3,000,000) Above 10,000m2 L15(1,500,000 – 3000000)
2
- EDUCATION
BOARDING
SCHOOL
10.
EDUCATIONAL
BOARDING
SCHOOL - EDUCATIONAL
BOARDING SCHOOL
To reduce levy
burden and
increase
compliance.
Increase the
number of boarders
Less than or equal
to 100 boarders
L7 (50,000 –
200,000
Less than or equal to 200
boarders L7 (50,000 -150,000
101-500 boarders L8 (200,000 – 500,000) 201-500 boarders L8 (200,000 – 500,000)
Above 500
boarders
L9 (300,000 –
600,000 501-1000 boarders L9 (300,000 -600000
Above 1001 boarders L10 (550,0000 – 700,000)
133
3
We propose to
reduce the fire
inspection fee from
100,000 to
8,000,000 of the
previous to
10,000/= to 3,
000,000/= - TRAINING
INSTITUTIONS TRAINING INSTITUTIONS
Less than or equal
to 500 students
L5(10,000 –
40,000)
Less than or equal to 500
students L5(10,000 -40,000)
501-1,000
students
L6(40,000 –
100,000) 501-1,000 students L6(40,000 -100,000)
1,001-2,000
students
L7 (50,000-
200,000) 1,001-2,000 students L7(50,000 -200,000)
2,001-3,000
students
L9 L (300,000 –
600,000 2,001-3,000 students L8A (400,000)
More than 10,000
students L19(8,000,000/=) 3,001-4,000 students 8B (300,000)
4,001–5,000 students L8(200,000 – 500,000)
5,001–6,000 students L9(300,000-900,000)
6,001–7,000 students L10(550,000-700,000)
7,001–8,000 students L11(500,000-800,000)
8,001–9,000 students L12(700,000- 1,000,000)
9,001 – 10,000 students L13(600,000- 1,500,000)
More than 10,000
students
L15(1,500,000 –
3,000,000)
4
We propose to
categorize the type
of Bar.
12.BAR - BAR
L6(40,000 –
100,000)
Bar without cooking
facilities L6(40,000 -100,000)
Bar with cooking facilities L7 (50,000-200,000)
5
We propose to add
new fire category
and its levy
NONE 13. SERVICE BAYS L5(10,000 – 40,000)
To increase
compliance and
new source of
income.
134
6
In the in the
classification guide
were added a new
item “lodge and
bandas” as the new
source and it will
be charged from tsh
200,000/= to
4,000,000/=
depending on the
rooms and huts
and location.
16.HOTEL IN
PROTECTED
AREA
HOTEL/LODGE/BANDAS
IN PROTECTED AREA
7
In the in the
classification guide
were added a new
item “vibrated
blocks making
facilities” as the
new source and it
shall be charged
from 40,000/= to
Tsh 3000,000/=
dependin on m2
and locations. And
also to change the
area(m2)
19.INDUSTRIAL
SERVICES - INDUSTRIAL
SERVICES
Less than or equal
to 50m2
L6(40,000 –
100,000
Less than or equal to
100m2 L6(40,000 -100,000
Gross floor area
51-500m2
L7(50,000 –
200,000
Gross floor area 101-
500m2 L7(50,000 – 200,000
Gross floor area
501-1000m2
L8(200,000 –
500000
Gross floor area 501-
1000m2 L8(200,000 – 500000
Gross floor area
1001-2000m2
L9 (300,000 –
600000
Gross floor area 1001-
2000m2 L9 (300,000 -600000
Gross floor area
2001-3000m2
L10(550,000 –
700000
Gross floor area 2001-
3000m2 L10(550,000 – 700000
Gross floor area
3001-5000m2
L12(700,000 –
1000000
Gross floor area 3001-
4000m2 L12(700,000 – 1000000
Gross floor area
5001-7000m2
L13(600,000 –
1,500,000
Gross floor area 4001-
5000m2
L13(600,000 –
1,500,000
Gross floor area
7001-8500m2
L14(800,000 –
2,000,000
Gross floor area 5001-
6000m2
L14(800,000 –
2,000,000
More than
8501m2
L15 (1,500,000 –
3,000,000) More than 6000m2 L15 (1,500,000 – 3,000,000
8
In the in the
classification guide
were added a new
21.
CONSTRUCTION
SITE
21 CONSTRUCTION
SITE
To increase
compliance and
revenue.
135
item “demolition or
alteration” as the
new source and it
shall be charged as
the same as
construction site.
i.e tsh L7 (50,000-
200,000)
(Commercial, and
Industrial only)
(Commercial, Research
and Industrial only)
9
We propose to
change m2 of some
items under this
category - BEVERAGE
INDUSTRIES - BEVERAGE
INDUSTRIES
To reduce tax
burden and
increase compliance
(a) For nonalcoholic
industries
(a) For non-alcoholic
industries
Less than or equal
to 500m2
L5(10,000 –
40,000)
Less than or equal to
500m2 L5(10,000 – 40,000
Gross floor area
501-1125m2
L6(40,000 –
100,000)
Gross floor area 501-
1000m2 L6(40,000 – 100,000
Gross floor area
1126-2000m2
L7(50,000 –
200,000
Gross floor area 1001-
2000m2 L7A (50,000 -150,000
Gross floor area
2001-3500m2
L8(200,000 –
500000
Gross floor area 2001-
3000m2 L8(200,000 – 500,000)
Gross floor area
3501-4500m2
L9 (300,000 –
600000
Gross floor area 3001-
4000m2 L9 (300,000 -600,000
Gross floor area
4501-5500m2
L12(700,000 –
1000000)
Gross floor area 4001-
5000m2
L12 (700,000 –
1,000000)
Gross floor area
5501-7000m2
L13(600,000 –
1,500,000
Gross floor area 5001-
7000m2
L13(600,000 –
1,500,000
Gross floor area
7001-8000m2
L14(800,000 –
2,000,000
Gross floor area 7001-
8000m2
L14(800,000 –
2,000,000
More than
8501m2
L15 (1,500,000 –
3,000,000) More than 8000m2 L15 (1,500,000 – 3000000)
(b) For alcoholic
industries less
than or equal to
500 m2
L7(50,000 –
200,000)
(b) For alcoholic
industries less than or
equal to 500 m2
L7A (50,000 -150,000
136
Gross floor area
501-1125m2
L8(200,000 –
500000)
Gross floor area 501-
1000m2 L8(200,000 – 500,000)
Gross floor area
1126-2000m2
L9 (300,000 –
600000)
Gross floor area
1001-2000m2 L9 (300,000 -600000
Gross floor area
2001 – 3500m2
L10(550,000 –
700000)
Gross floor area 2001 –
3000m2
L10 (5500000 –
700,000)
Gross floor area
3501-4500m2
L12(700,000 –
1,000,000)
Gross floor area 3001-
4000m2 L11(500,000 – 800,000)
Gross floor area
4501-5500m2
L13(600,000 –
1,500,000)
Gross floor area 4001-
5000m2
L12 (700,000 –
1000000)
Gross floor area
5501-7000m2
L14(800,000 –
2,000,000)
Gross floor area 5001-
6000m2
L13(600,000 –
1,500,000
Gross floor area
7001-8500m2
L15 (1,500,000 –
3,000,000)
Gross floor area 6001-
7000m2
L14(800,000 –
2,000,000
More than
8501m2
L16(2,500,000 –
4,000,000) More than 7000m2 L15 (1,500,000 – 3000000)
10
We propose to add
new item “fishing
port and cruise
home port and their
corresponding levy.
And the word “lake
port” to replace
with the word
“inland port” - PORT 24.PORT
Lake port L12(700,000 – 1,000000) Inland port L12(700,000 – 1,000,000)
Sea port L14(800,000 – 2,000,000 Sea port L14(800,000 – 2,000,000)
Fishing Port L8(200,000 – 500,000)
Cruise home port L8(200,000 – 500,000)
11
We propose to add
new item fire Levy
and proposed
under this category
that will be charged
from tsh L6(40,000
- 100,000) to
L17(2,000,000 –
5,000,000)
- POWER
STATION 33.POWER STATION
Hydro L18(3,000,000 – 6,000,000) Mini Hydro less than 10 megawatt L7 (50,000 -200,000
Gas L17(2,000,000 – 5,000,000) Hydro more than 10 megawatt L18(3,000,000 – 6,000,000
Wind/Thermal L17(2,000,000 – 5,000,000) Gas L18(3,000,000 – 6,000,001
Sub – Station L6(40,000 – 100,000 Wind L17(2,000,000 – 5,000,000
137
Sub- Station L12 (700,000 – 1,000,000)
12
We propose to
delete this item
that charged tsh
30,000/=
34.
TRANSFORMER To reduce burden
13
We propose to
Reduce the fire levy
under this category
from tsh L3(5,000
- 20,000 to
L2(10,000/=) for
surveyed area and
from L2(10,000/=)
to L1A(5,000/= )for
un surveyed area.
34.RESIDENTIAL
/RESIDENCE
HOUSE
34.RESIDENTIAL/RESID
ENCE HOUSE
To reduce levy
burden and
increase compliance
Surveyed area L3(5,000 – 20,000 Surveyed area L2(10,000)
Un surveyed area L2(10,000) Un surveyed area L1A(5,000)
14
36.RESIDENTIAL
/BUILDING UNIT
GROUP TITLE
COMMUNITY(per
unit/apartment )
L7(50,000 –
200,000)
GROUP TITLE
COMMUNITY(per
unit/apartment )
L6(40,000 -100,000)
To reduce levy
burden and
increase compliance
15
RESIDENTIAL
FLAT RESIDENTIAL FLAT
To reduce levy
burden and
increase compliance
Less than or equal
to 4 levels
L8(200,000 –
500,000)
Less than or equal to 4
levels L8A(400,000)
5-8 levels L9 (300,000 – 600000) 5-8 levels L8B(300,000)
9-12 levels L10(550,000 – 700000) 9-12 levels L8(200,000 – 500,000)
13-16 levels L12(700,000 – 1000000) 13-16 levels L10 (550,0000 – 700,000)
17-20 levels L15 (1,500,000 – 3,000,000) 17-20 levels L12 (700,000 – 1,00,0000)
21-24 levels L16(2,500,000 – 4,000,000) 21-24 levels L13(600,000 – 1,500,000)
138
25-28 levels L17(2,000,000 – 5,000,000) 25-28 levels L14(800,000 – 2,000,000
More than 28
levels
L20(6,000,000 –
9,000,000) More than 28 levels L15 (1,500,000 – 3,000,000)
16 we propose to add new fire category NONE NONE
- MIXED USE
BUILDINGS
Less than or equal to 4
levels L8(200,000 – 500,000)
5-8 levels L10(550,000 – 700000
9-12 levels L12(700,000 – 1000000
13-16 levels L13(600,000 – 1,500,000)
17-20 levels L14(800,000 – 2,000,000
21-24 levels L15 (1,500,000 – 3000000)
25-28 levels L16(2,500,000 – 4,000,000)
More than 28 levels L17(2,000,000 – 5,000,000)
17
We propose to add
new item which
whole sale and
‘Mini super market’
which will be
charged tsh
L4(30,000/=) for
each item,
45.SHOP - SHOP
Retail L3(5,000 – 20,000
Wholesale L4(30,000)
Mini supermarket L4(30,000)
18
We propose to add
new item “Sales of
Portable Fire - FIRE
EQUIPMENT
DEALER - FIRE EQUIPMENT
DEALER
To increase revenue
and compliance to
propriators who
139
Equipments” and
their corresponding
fire levy that will be
charged at TShs.
100,000/=
Sales of Portable Fire
Equipments L6 (100,000)
only sells Portable
Fire Extinguishers
without involving
servicing and
maintenance
19
In the classification
guide were added a
new item “ferry and
airport” as the new
source . - TERMINAL
20
we propose to add
new fire category
“WORKSHOPS” and
their corresponding
fire levy that will be
charged from 10,
000/= THS to Tsh
40,000/=
depending on their
location.
NONE NONE 64. WORKSHOP L5(10,000 – 40,000)
To increase
compliance and
source of revenue
21
We propose to
remove this
category from this
schedule and
establish a new
schedule special for
this case for
reducing the fire
levy. - APROVAL OF
FIRE
ENGENEERING
This will reduce the fire
levy from the minimum
level of tsh 200,000/=
to the minimum of tsh
15,000/=
To increase
compliance.
22
We propose to Add
new Fire category
and their Fire Levy
that will be charged
tsh 10,000 to
40,000/= as “Dry
cleaners” were
charged as Offices
NONE NONE 68.DRY CLEANER
To provide clarity
for Dry Cleaner
category as it was
charged under
Office category
140
23
We propose to
delete this category
and their
corresponding levy
13 FARMING/
GRAZING
To reduce levy
burden in
agriculture sector.
Less than or equal
to 10 hectares
L6(40,000 –
100,000)
11-40 hectares L8(200,000 – 500,000
41-100 hectares L10 (5500000 – 700,000
More than 100
hectares.
L12 (700,000 –
1000000)
We propose to
delete this category
and their
corresponding levy - SISAL COFEE
AND TEA
PLANTATIONS
To reduce levy
burden in
agriculture sector.
Less than or equal
to 500m2
L6(40,000 –
100,000)
501-1000m2 L7(50,000 – 200,000
1001-6000m2 L8(200,000 – 500,000
Above 6000m2 L12 (700,000 – 1000000)
More than 40
hectares
L11(500,000 –
800,000
141
FOURTH SCHEDULE
(Made under Regulation 8, 2008)
Guide to classification of Approved Fire Engineering
“Purpose Group” means a building or compartment regarded according to its use, intended use or main purpose of use;
Not More
than
100m²
(TShs.)
Not More
than 150m²
(TShs.)
Not More
than 200m²
(TShs.)
Excess from
Maximum
Area
(TShs/m²)
I 15,000/= 30,000/= 45,000/= 0
II, IV, V 45,000/= 75,000/= 100,000/= 450/=
III 25,000/= 45,000/= 65,000/= 350/=
VI, VIII 35,000/= 85,000/= 135,000/= 500/=
VII 30,000/= 50,000/= 75,000/= 400/=
*Worship 10,000/=
*Includes church, mosque, temple or any other premise designed purposely for worship
The total consultancy fee for the building works shall be calculated using the below formula:
TCF = BF + ∑ (BF x SFS%)
Where:
TCF = total consultancy fee obtained from the above formula
BF = Base fee for particular built-up area of the proposed building
SFS% = special fire service percentage chargeable from the base fee as indicated in the Second Schedule Fire Levy Group I
NB
Where the building has no special requirements, as shown in Fire levy Group I (Review of Fire Engineering Protection Plan) only the base fee is
charged.
Base Fee for Proposed
Built -up Area
Purpose Group
ong
142
Annex 9
First Schedule
(Made under Regulation 4 and 14)
Licence fees and Levy
No Type of License Application Fee Licence Fee Levy
- CASINO – DAR TZS 1,000,000
(annually)
USD 40,000 (annually) – - CASINO – REGION TZS 1,000,000
(annually)
USD 20,000 (annually) – - SLOT MACHINES OR ROUTE OPERATIONS (SHOP) TZS 100,000
(annually)
TZS 500,000 (annually) TZS 10,000 (monthly per
machine) - SLOT MACHINES OR ROUTE OPERATIONS
(CLUBS/PLACES SELLING LIQUOR)
TZS 10,000
(annually)
TZS 50,000 (annually) TZS 10,000 (monthly per
machine) - NATIONAL LOTTERY TZS 1,000,000 USD 50,000 (annually) 2% on Gross Gaming
Revenue (GGR) paid
monthly - COMMERCIAL LOTTERY (UNDER SEC. 41 (3) OF THE
ACT)
TZS 1,000,000 USD 40,000 (annually) – - PRIVATE LOTTERY TZS 5,000 (per
lottery)
TZS 50,000 (per lottery) – - PUBLIC LOTTERY TZS 5,000 (per
lottery)
TZS 50,000 (per lottery) – - FETE – TZS 10,000 (per week) –
- BINGO (IN A HALL OR CASINO TZS 100,000
(annually)
TZS 500,000 (annually) 5% on Gross Gaming
Revenue (GGR) paid
monthly
11.
TOMBOLA (CLUBS OR REGISTERED SOCIETIES) TZS 5,000 (per
application)
TZS 10,000 (per month) – - PROMOTIONAL LOTTERY (PROMOTIONAL BUDGET
BELOW TZS 5,000,000)
TZS 10,000 (per
lottery)
TZS 100,000
(per month)
- PROMOTIONAL LOTTERY (PROMOTIONAL BUDGET OF
TZS 5,000,000 OR ABOVE)
TZS 10,000 (per
lottery)
6% (of total promotional
budget)
- TRANSFER OF PERMIT TZS 30,000 (per
location)
- –
- POSTPONEMENT OF DRAW TZS 50,000 – –
- KEY EMPLOYEE TZS 10,000
(annually)
TZS 50,000 (annually) –
143 - SUPPORT EMPLOYEE – TZS 10,000 (annually) –
- DUPLICATE LICENCE TZS 10,000 – –
- AMUSEMENT WITH OR WITHOUT PRIZE TZS 5,000 TZS 10,000 (per
location)
- INSPECTION OF LICENCE HOLDERS REGISTER TZS 20,000 (per
inspection)
- –
- POOL BETTING SCHEME TZS 50,000
(annually)
TZS 50,000 (annually) 10% of bet amount - FORTY MACHINES SITE LICENCE (DAR ES SALAAM) TZS 100,000
(annually)
TZS 4,000,000
(annually)
- FORTY MACHINES SITE (OTHER REGIONS) TZS 100,000
(annually)
TZS 2,000,000
(annually)
- SPORTS BETTING (SHOP) TZS 500,000
(annually)
TZS 1,000,000
(annually)
- PRIZE COMPETITION TZS 10,000 (per
lottery)
10% of the Promotional
Budget
- MANUFACTURER CERTIFICATE TZS 500,000
(annually)
TZS 1,000,000
(annually)
- SELLERS/DISTRIBUTORS/SUPPLIERS TZS 500,000
(annually)
TZS 1,000,000
(annually)
- SERVICE PROVIDER TZS 500,000
(annually)
TZS 1,000,000
(annually)
- RETAILERS ON PREMISES – TZS 100,000(Casino)
TZS 20,000 (Forty
Machines Site)
TZS 10,000 (Slot Shops
& Bars)
TZS 10,000 (Bingo)
- ACCREDITATION – TZS 10,000 –
- PRINCIPAL LICENCE (SPORTS BETTING) TZS 500,000
(annually)
USD 30,000 (annually) – - PRINCIPAL LICENCE (SLOT OR ROUTE OPERATIONS) TZS 500,000
(annually)
USD 10,000
(annually)
- INTERNET CASINO TZS 1,000,000
(annually)
USD 40,000
(annually)
- OPERATIONS UNDER SEC.51(2) TZS 1,000,000
(annually)
USD 10,000
(annually)
5% on Gross Gaming
Revenue (GGR) paid
monthly - VIRTUAL GAMES
(IN SPORTS BETTING PREMISES)
TZS 50,000
(per location
annually)
TZS 100,000 (per
location annually)
5% on Gross Gaming
Revenue (GGR) paid
monthly
144 - ONLINE VIRTUAL GAMES TZS 500,000
(annually)
USD 10,000 (annually) 5% on Gross Gaming
Revenue (GGR) paid
monthly - VIRTUAL GAMES (STAND-ALONE) PREMISE TZS 50,000.00
(per location
annually)
TZS 100,000 (per
location annually)
5% on Gross Gaming
Revenue (GGR) paid
monthly - CERTIFICATE OF SUITABILITY – TZS 1,000,000 –
- GAMING CONSULTANCY TZS 10,000 TZS 1,000,000
(every two years)
- PLAY STATIONS TZS 10,000 (per
location annually)
TZS 50,000
(per location annually)
- INTERNET SPORTS BETTING TZS 1,000,000
(annually)
USD 30,000 (annually) – - NUMBER GAMES TZS 1,000,000
(annually)
USD 40,000 (annually) –
145
Amendment of Second Schedule 20. The principal Regulations are amended by deleting the Second Schedule and replacing it with the following
new schedule:
Second Schedule
(Made under regulation 68 (1))
Registration of devices
No. Devices Casino Slot Machines Operations Sports Betting Forty Machines
Site
Other Devices
- SLOT MACHINE TZS 50,000 TZS 30,000 – TZS 40,000 –
- LIVE TABLES TZS 100,000 – – –
- ELECTRONIC TABLES-SEATS TZS 50,000 – – TZS 50,000 –
- SPORTS BETTING TERMINALS – – TZS 30,000 – –
- POOL TABLES – – – – TZS 10,000
- PLAY STATIONS – – – – TZS 10,000
Additional of new
Schedule - The principal Regulations are amended by adding immediately after the Second Schedule the new Schedule as
follows:
146
Third Schedule
Made under Section 85 (2) (g)
Administrative Sanctions to Licensee
No. RELEVANT CLAUSE OF THE GAMING
ACT, 2003 OR REGULATIONS
ACTS, OMISSIONS OR OFFENCE
COMMITTED SANCTIONS: PENALTY
Gaming Act, Cap 41.
- Section 15(2) Failure to renew licence within
prescribed time
Penalty of 5% of the required licence fee and an
Interest of 25% of the penalty for every month
delay - Section 82A (c) Placing Machines on un–Authorized
Premise
TZS. 1,000,000 (per location) - Section 86B Failure for a licensee to comply with
requirements of Section 86B
TZS. 1,000,000 for every day of delay.
GAMING REGULATIONS, 2003 - Regulation13 Failure of a licensee to display a
gaming licence in a gaming premise
TZS. 100,000 (per location) - Regulation 18(4) Failure to inform the Board on
suspension and recommencement of
business TZS. 500,000 - Regulation 18(5) Failure to file a report to the Board for
approval of transfer of any share
prescribed under Regulation 18(5)
TZS. 7,000,000 - Regulation 25 & 26 Failure of a licensee to develop and
implement organisation structure
prescribed
under Regulation 25 and 26
TZS. 300,000
147 - Regulation 27 Failure of a licensee to prepare and
implement the requirements of job
compendium prescribed under
Regulation 27
TZS. 300,000 - Regulation 29&32 Employ key and support staff without
gaming license
TZS. 100,000 (per person) - Regulation 34& 60 Failure of Key or Support employee to
make available and display of
employees gaming license for
inspection set under Regulation 34
and 60.
TZS. 20,000 (per person) - Regulation 38 Failure to comply with the minimum
requirement of theoretical and
demonstrable return to public
prescribed under Regulation 38
TZS. 1,000,000 - Regulation 39 & 40 Breach of Regulation 39 or 40 in
relation to the use and approval of
chips, tokens
TZS. 500,000 - Regulation 44 to 48 Failure of licensee to comply with the
requirements relating to installation,
operation and maintenance of
surveillance system, records as
prescribed under Regulation 44 to 48
TZS. 10,000,000 - Regulation 64 Failure to display winning
combinations together with
corresponding prizes on every slot
machine in violation of Regulation 64
TZS. 100,000 - Regulation 65 Failure to comply with the minimum
requirement of theoretical and
demonstrable return to public
prescribed
under Regulation 65
TZS. 500,000
148 - Regulation 68 Failure to Register Gaming Device TZS. 40,000 (per device)
- Regulation 74& 78 Breach of requirement in relation to
conventions of gaming machine set
under Regulation 74 and Regulation
78
TZS 5,000,000 - Regulation 82 Failure to submit annual audited
financial statements with any of the
requirements prescribed under
Regulation 82
TZS. 1,000,000 - Regulation 84 (4) Failure to submit gaming levy within
prescribed time
Penalty of 10% of the required gaming levy and an
Interest of 25% of the penalty for every month delay.
INTERNET GAMING REGULATIONS 2021 - Regulation 9 (1) Failure to have sever in Mainland
Tanzania
TZS.7,000,000 - Regulation 9 (2) Failure to obtain approval of having a
replica sever
TZS.7,000,000 - Regulation 19(3) Failure to inform the Board on the
incident which the licensee is unable
to resolve under Regulation 19(4) (a)
TZS. 300,000 - Regulation 21 Failure to notify the Board of any
unclaimed non-monetary prize
TZS. 300,000 - Regulation 23 Failure of a licensee to inform the
Board circumstances of incident that
prizes was withheld
TZS. 300,000 - Regulation 25 Failure of a licensee to display prizes
on every game offered for play under
Regulation 25
TZS. 1,000,000 - Regulation 56 Failure of a licensee to keep records as
per requirements of Internet Gaming
Regulations, 2021
TZS. 5,000,000
149