THE National Assembly resumes here this morning after a weekend recess, with Members of Parliament expected to approve the 30trn/- 2016/17 national budget.
MPs are eagerly waiting to hear the
government’s response to their outcry over the proposed contentious tax
on their gratuity. Finance and Planning Minister Dr Philip Mpango
presented the development focused fiscal plan of the government some 12
days ago, enumerating a number of austerity measures to control
spendthrift in the public sector.
The lawmakers had six days to debate the
budget proposals, with almost all MPs disapproving the proposed five
per cent tax on their gratuity as not only unjustifiable but also
unfair. Some MPs, during the debate, denounced the taxation, demanding
that all politicians, including the president be taxed instead of
singling out only the lawmakers.
Analysts say that, given his commitment
to taxation drive to boost the government collections, President John
Magufuli may decide to commit his earnings to similar tax to weaken the
legislators’ argument of discrimination.
Excessive taxes on agricultural produce
were among the areas that attracted heated debate, with MPs pressing the
government to scrap the nuisance tariffs on peasants.
They charged that in Tanzania peasants
pay taxes at the rate of over 70 per cent of the gross prices of their
agricultural produce, describing the tax regime as exploitative and
unfriendly to the struggling poor peasants.
The proposed 18 per cent Value Added Tax
on tourism services was also strongly opposed as counterproductive to
the country’s already uncompetitive tourism industry.After approving the
budget through open votes, the Appropriation Bill, 2016 will be
presented.
The National Assembly will complete the
budget activities with the Finance Bill, 2016, on Wednesday, sparing
seven days for the question-answer sessions and presentation of
Government Bills, before adjourning the parliament next Friday.
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