Members of Parliament (MPs) overwhelmingly endorsed the 2017/18 national budget here last evening, with repeated calls from CCM legislators to deny development funds to constituencies whose representatives objected it.
Out of 355 votes cast, 260 voters said Yes and 95 said No, with all opposition legislators voting for the negative, save for Magdalena Sakaya (Kaliua --CUF) and Maftaha Nachuma (Mtwara Urban -- CUF).
“If you have refused the budget, it literally means your people have no problem and you don’t need development funds,” said Joseph Kasheku (Geita Rural --CCM).
Minister of State in the Prime Minister’s Office, Policy, Parliamentary Affairs, Labour, Employment, Youth and Disabled Jenister Mhagama queried the logic behind opposition MPs who have rejected the budget to subject the government to questions about development.
Other legislators who showed concern over execution of development projects in areas whose MPs have rejected the budget were Hawa Ghasia (Mtwara Rural — CCM) and Amina Mollel (Special Seats —CCM).
Their move was supported by the Speaker of the National Assembly, Mr Job Ndugai. The budget was endorsedwith Finance and Planning Minister Philip Mpango obliging to almost all legislators’ demands.
Winding up the heated debate on the budget proposals, Dr Mpango announced the abolition of Value Added Tax (VAT) on hunting fees, licences and permits with the view of promoting business in the sector.
He further relieved private schools of skills development levy and fire extinguishing fee burden, expressing optimism that school owners will review their fee structures to enable more Tanzanian children to get education.
All industrial investors will no longer have to pay for the Environmental Impact Assessment (EIA) fee, said the Minister. Clarifying on the highly contentious property tax, Dr Mpango said village and mud houses will not be involved.
“The property tax is charged on permanent structures in cities, municipalities, towns and townships…villages and mud houses will not be taxed,” he clarified, adding that houses for people aged over 60 years are also exempted.
During the debate that attracted 193 MPs, the proposed 10,000/- and 50,000/- per ordinary house and storey buildings, respectively, were decried, with legislators describing the taxing of village-based mud and grassthatched houses as unfair and unjustifiable.
But, the Minister maintained that Tanzania Revenue Authority (TRA) will collect the property tax and submit it to the central government. “The amount will be disbursed back to local authorities subject to their applied and certified needs,” said Dr Mpango.
He insisted that the government was determined to register and issue identity cards to all small traders in the informal sector, with the view of formalizing the sector and collecting due government taxes.
The Minister said that under the arrangement, caterers, masters of ceremony and all service providers in various events will have to pay appropriate taxes.
The Minister further directed TRA to collect all gaming and pool betting related taxes and submit them to the government for disbursement to the Gaming Board of Tanzania (GBT) subject to verified demands.
“There is huge money in gaming and betting activities… TRA will collect the due taxes for the government and the gaming board will be given money as per submitted and verified demands,” said the Minister.
Dr Mpango defended the replacement of the annual motor vehicle licence fee with 40/- levy on fuel, saying the move will relieve motorists with the burden of fee, which is costly.
He said the 40/- levy has been introduced in kerosene as well to strategically check adulteration. He dismissed claims by many MPs that taxing fuel was burdening the poor for the benefit of motorists, mostly urban dwellers, saying the collected taxes will be used to finance development projects and social service provision for the benefit of all, rural dwellers inclusive.
Debating the budget, Deputy Minister for Finance, Dr Ashatu Kijaji assured the House that the government was committed to President John Magufuli’s campaign, promise to disburse 50m/- to each village, saying already the State has already allocated about 120bn/- for the purpose.
“We remain committed to release this money but there are issues that must be tackled…we are currently working on firm systems to support the distribution of the money,” said Dr Kijaji, reminding the lawmakers that the money was not a gift but revolving fund to spark economic growth in rural areas.
Minister of State in the President’s Office, Public Service Management and Good Governance, Angela Kairuki said she would permanently verify the authenticity of public servants to ensure that not a penny from government cofpenny from government cofpenny from government cof fers will be paid unjustifiably.
“I will maintain the verification as long as there will be need to do so. Let me be referred to as minister of verification, if necessary,” said the Minister, declaring the introduction of performance contract system for all executives in the public sector.
Daily News
No comments:
Post a Comment