THE Zanzibar Revenue Authority (ZRA) has reminded the business community that it has started implementing provisions of eight tax-related laws amended at the last Budget session, with the changes taking effect early July.
Makame Khamis Muhammed, the ZRAs head of information,
public relations and taxpayer services, told journalists here yesterday that
the amended laws include the Zanzibar Revenue Authority Act of 2022, the Excise
Duty Act No. 8 of 2017 and the Road Transport Act No. 7 of 2003.
Other laws include the Finance Act No. 9 of 2015 (also
known as the Infrastructure Tax), the Hotel Levy Act No. 1 of 1994, the Value
Added Tax Act No. 4 of 1998, the Petroleum Levy Act of 2001 and the Tax
Procedure and Administration Act of 2009.
These amendments are intended to strengthen domestic
industries, enhance customs control and management, regulate imports and
streamline driver licensing in boosting revenue collection, he said.
The reforms will also ensure tax laws remain aligned
with changing business practices, with technology playing a crucial role in tax
collection, he stated, affirming that the new amendments will simplify tax
payment processes and address implementation challenges.
“These laws are amended so they can be aligned with
government objectives. We cannot have a situation where the government promotes
a blue economy or other infrastructure initiatives, yet its tax laws contradict
those goals,” he explained.
The amended laws are among those being overseen by ZRA
during fiscal 2025/2026 as previously, for a business to be registered in
Zanzibar, the owner had to be a resident. Under the new amendments,
non-residents who provide electronic services online can now apply for tax
registration, he stated.
The Excise Duty Act has also been revised, with the
import tax on chicken and fish raised from 1,000/- to 3,000/- per kilogramme,
excise duty on spirits rising from 4,386/06 to 6,000/- per litre, while wine
will now be taxed at 6,000/- per litre, up from 4,386/- earlier, he said.
Shisha flavour has a special rate of 28,232/- per
kilogramme, replacing the previous 120 percent charge, while imports of sweets,
biscuits, chocolates and chewing incense will now be taxed at 1,000/- per
kilogramme.
Disposable plastic items such as plates, cups and
bowls will be taxed at 5.0 percent per kilogramme, with imports of used cars
older than five years but not exceeding 10 years attracting a 15 percent duty.
New registration fees for motor vehicles will have
distinct categories for four-wheel, three-wheel and two-wheel electric-powered
vehicles, replacing oil-powered engines, meanwhile as the fee for a one-year
driving license stands at 30,000/-.
A two-year license is now levied at 45,000/ -
(previously 35,000/-) while a three-year license fetches 60,000/- (up from
45,000/-), and a five-year license has a 75,000/-- tag (up from 60,000/-
earlier, he stated.
Road license fees have also risen from 38/- to 100/-
per litre for diesel and petrol imports, while the road fund levy has doubled
from 100/- to 200/- per litre, he said.
TRA and ZRA are responsible for implementing these
changes with professionalism, as the government has already laid out its plans
and expects additional revenues from the new measures to support service
delivery across various sectors in the current financial year, he added.
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