TATOA in cooperation with other stakeholders is in discussion with a tax consulting firm Price Waterhouse Coopers (PWC) to come up with proposals to the Government on the issue of review of some tax laws that impinge on the operations of the sector and more specifically the new VAT amendment.
For sometimes there have been complaints on various laws, especially supplementary laws, that contradict their corresponding fundamental laws during implementation. One example is the new VAT amendment which requires businesses to pay Value Added Tax (VAT) on transportation services of goods going outside Tanzania when the job is subcontracted to another transportation firm. The fundamental law governing VAT payments states that VAT is charged only on goods and services which are consumed/traded domestically within the country. Goods consumed outside the country are not liable for VAT charges, and therefore in this instance, the charging of VAT on these ancillary services is in conflict with its fundamental law.
Members will be kept informed of the development.