The Financial Laws (Misc. Amendment ) Act, 2008

ISSN 0856-0331X THE UNITED REPUBLIC OF TANZANIA ACT SUPPLEMENT No. 18 20" June, 2008 to the Gazette of the United Republic of Tanzania No. 25 Vol. 89 dated 20° June, 2008 Printed by the Government Printer. Dar es Salaam, by Order of Government THE FINANCIAL LAWS (MISCELLANEOUS AMENDMENTS) ACT, 2008 ARRANGEMENT OF PARTS: Part Title PART I PRELIMINARY PROVISIONS. PART I AMENDMENT OF THE LOCAL GOVERNMENT FINANCES Act (CaP.290). PART II] AMENDMENT OF THE TANZANIA REVENUE Autuoriry Act (CAP.399). PART IV AMENDMENT OF THE URBAN AUTHORITIES (RATING) Act (CAP.289). ivy n wo No. 9 Financial Laws (Miscellaneous Amendment) 2008 THE UNITED REPUBLIC OF TANZANIA é No. 9 or 2008 1 ASSENT. JAKAYA MRISHO KIKWETE President 06" June, 2008 An Act to amend certain written laws for cnabling the Tanzania Revenue Authority to collect property rates on behalf of Local Government Authorities in order to enhance collection of revenue, build capacity and experience on collection of property rates. ENACTED by Parliament of the United Republic of Tanzania. PART I PRELIMINARY PROVISIONS Short 1. This Act may be cited as the Financial Laws title (Miscellaneous Amendment) Act. 2008. Comme- 2. The provisions of various Parts of this Act shall each be neement deemed to have come into operation on the 1* day of July. 2008. PART Il AMENDMENT OF THE LOCAL GOVERNMENT FINANCES ACT Conairce 3. This Part shall be read as one with the Local Government Bion Finances Act, hereinafier referred to as the “principal Act”. ‘ap.2 Amend- 4. The principal Act is amended in section 4 by inserting in ment of — jts appropriate alphabetical order the following new definition- section 4 No. 9 Financial Laws (Miscellaneous Amendment) “Tanzania Revenue Authority” means the authority established by the Tanzania Revenue Authority Act.” 5. The principal Act is amended by adding immediately after section 31, the following new sections: “TRA to collect rates 31A.-(1) Without prejudice to the provisions of section 31, the Tanzania Revenue Authority in consultation with a respective local government authority shall evaluate. assess, collect and account for property rate imposed by Authorities. (2) For the purposes of subsection (1), the Minister may, by order in the Gazette. declare the township authority. the urban authority or a geographical area to be the place where the ‘Tanzania Revenue Authority shall collect rates. (3) In the performance of its functions under this Act. the Tanzania Revenue Authority shall be indemnified by the local government authorities in relation to any cost incurred, loss suffered or action brought by reason of performance of such functions. (4) Notwithstanding the provisions of subsection (3). a local government authority shall not be held responsible for cost incurred or loss suffered by any person as a result of a negligent act or omission by the Tanzania Revenue Authority. (5) In the enforcement or recovery of property rate the Tanzania Revenue Authority shall apply mutatis mutandis the powers of recovery stipulated under the provisions of the Income Tax Act and the Urban Authorities (Rating) Act. 356 2008 Cap. 399 Addition of section 3A No. 9 Financial Laws (Miscellaneous Amendment) 2008 (6) For the purposes of this section “assess” means the act of computing property rate from property value. 31B.-(1) Where the Minister has declared a township authority. urban authority or, as the case may be. a geographical area pursuant to subsection (2) of section 31A, the Tanzania Revenue Authority in consultation with a respective local government authority shall make valuation of all rateable properties for purposes of establishing the rate payers and rates collectible and prepare a rates payers list thereof. (2) The rates payers list shall show in respect of each rate payer (a) the name and address of rate payer: (b) the area and situation of the rateable property. matter or activity: any other information as the Authority may consider necessary. (c (3) In preparing the rates payers list under this section, the Tanzania Revenue Authority shall have regard to the provisions of the Urban Authorities (Rating) Act relating to the preparation of rate. (4) The ‘Tanzania Revenue Authority shall after preparing a rates payers list issue a demand notice to every owner in respect of the rates of such properties in accordance with the provisions of the Urban Authorities (Rating) Act. (5) Any dispute and objection arising from valuation and payment of rates in respect of areas designated pursuant to Section 31A(2) shall be determined in accordance with the provisions of the Tax Revenue Appeals Act.” (6) The period for which the agency of Tanzania Revenue authority for collecting of property rate shall be five years beginning on 1" July, 2008 however the Minister may— (a) extend the period of agency for specified time; 357 Caps.289 and 332 Valua- tion of reliable proeprty Cap.289 Cap.289 Cap. 408 No. 9 Constru- ction Cap.399 Amend- ment of section 3 Amend- ment of section 5 Amend- ment of section Cap.289 Financial Laws (Miscellaneous Amendment) 2008 (b) terminate the agency in relation to the specilicd local government authority upon being satisfied that the local government authority has acquired a requisite capacity to collect the property rate. PART III AMENDMENT OF THE TANZANIA REVENUE AUTHORITY ACT 6. This Part shall be read as one with the Tanzania Revenue Authority Act herein referred to as the * ‘principal Act”. 7. The principal Act is amended in section 3 by inserting the words “rates” between the words “fees” and “fines” appearing in the definition of the word “revenue”. 8. The principal Act is amended in section 5(2) by (a) adding immediately after paragraph (d) the following new paragraph “(c) negotiate and agree with a respective local government authority on the revenue collection targets for any given financial year subject to modalities that may be agreed.” (b) renaming paragraph (c) to (g) as paragraphs (f) to (h). 9, The principal Act is amended in section 14 by adding immediately after subsection (7) the following subsection: (8) Subject to Section 7 of the Urban Authority (Rating) Act. the Tanzania Revenue Authority may after consultation with respective local government authority exempt rateable property from being a rateable property. (9) Every local government authority shall furnish the Tanzania Revenue Authority with a list of properties cligible for remission or exemption of rates.” n mw mendment) Financial Laws (Miscellaneous 10. The principal Act is amended by adding immediately atter subsection 20. the following: Special 20A.-(1) The property rates collected by the account’ Authority shall be credited into a special local government authority account and shall be remitted to the relevant local government authority in a manner agreed upon by both parties. (2) The Commissioner General shall submit to a relevant local government authority a monthly report in respect of property rates collected.” 11. The principal Act is amended in the First Schedule by (a) adding immediately after paragraph 25 the following new paragraphs: ~26. The Local Government Finances Act. Cap. 290. 27. The Urban Authorities (Rating) Act. Cap. 289.” (b) renumbering paragraph 26 as 28. PART IV AMENDMENT OF URBAN AUTHORITIES (RATING) ACI 12. This Part shall be read as one with the Urban Authorities (Rating) Act hereinafter referred to as the “principal Act”. 13. The principal Act is amended in section 4 by adding immediately after subsection (1) the following new provision: “(1A) Without prejudice to subsection (1). the ‘Tanzania Revenue Authority in consultation with a respective local government authority shall appoint a Valuation Surveyor for preparing a roll or supplementary roll for all rating authorities to which it has been appointed as agent.” 2008 Addition of Section 2A Amend- ment of the First Schedule Constru- ction Cap.289 Amend- ment of section No.9 Amend- ment of section a Amend- ment of section Sl Addition of section A2A Financial Laws (Miscellaneous Amendment) 2008 14. The principal Act is amended in section 23 by adding immediately after subsection (5), the following new subsection: (6) The preceding provisions of this section shall not apply to areas of the local government authority to which the ‘Tanzania Revenue Authority has been appointed the agent.” 15.41) The principal Act is amended in subsection (1) by deleting the phrase “not exceeding one hundred hillings. and. in the case of a continuing offence. a further fine not exceeding ten shillings for everyday during which the default continues” and substituting for it the phrase “of twenty per centum of the rate defaulted and in the case of continuing default. five per centum per month of the sum remaining in default.” (2) For the purposes of subsection (1). a penalty of five per cent shall be imposed beginning in the second month from the date of imposition of the twenty per cent penalty. (3) For the purposes of subsection (2). part of a month shall be deemed to be full month and the total penalty shall not exceed the principal sum of the rate payable. 16. ‘The principal Act is amended in section 51 by. (a) designating section 51 as subsection (1): (b) adding afier a designated subsection (1) a new subsection (2) as follows: “Non “(2) In consultation with the Minister responsible applica- for finance. the Minister may make regulations jae or providing for the procedural and operational the Act matters on property rates.” 17. The principal Act is amended by adding immediately afier section 42 the following new section: “42A. The provisions of Part V of the Act shall not apply where the agency of the Tanzania Revenue Authority is in foree.” 360 No. 9 Financial Laws (Miscellaneous Amendment) Passed in the National Assembly on the 17" April. 2008. Dr. THOMAS KASHILILAL. Acting Clerk of the National Assembly 361 2008