Finance Minister, William Mgimwa

The government has scrapped tax by 100 percent on locally processed milk in an effort to increase milk production tothe people.

In the Finance Bill tabled in the House here yesterday, Finance Minister William Mgimwa said that the move is also intended to make locally produced milk compete with imported milk, especially from our northern neighbours.

In another dramatic event, the government has agreed to leave 10-year-old imported vehicles as the maximum age for vehicles getting into the country.

Earlier, the government had a view that the maximum age for vehicles allowed should be eight years.

In the debate MPs asked the government should leave the same age of ten years, to give opportunities for more people to buy vehicles as part of efforts to improve their standard of living.

The government later agreed to the MPs’ proposals, while also maintaining the current tax for bottled and packed water at sh 69/-

per litre, after earlier hiking the tax rate to sh 83/- per litre.

According to the finance bill, the government has reduced tax on locally produced wine for close to 75 percent from sh.420/- per litre to sh.147/- per litre.

“The idea is to promote locally produced wine and help to increase job opportunities in the industry,” the minister said, amid applause.

In another move, the government has placed taxes on artists’ works from zero to 40/- per product. The minister said the idea was meant to empower film actors and musicians to get reasonable incomes as their work will be formalised.

Andrew Chenge, Bariadi West MP (CCM), chairing the parliamentary committee on finance and economic affairs, also commended the government for its decision to using figures of projected inflation rather than prevailing inflation rates.

He said amendments on the bill should be for the benefit of the majority of the people.

Presenting his views, Kigoma North MP Zitto Kabwe (Chadema) asked the government to eliminate the two percent tax increase for mobile phone users, saying the move will exploit poor people, who have to use mobile phone for small scale economic activities and social welfare needs.

The mobile phone is not a luxury as some government officials seem to believe but a necessity in making urgent calls or other interactions.

The government did not change its stance in the decision to increase tax for airtime from 10percent earlier to 12 percent.

Amended taxes will be effected next January, to permit businessmen to adapt to the new situation, the minister added.