Tanzania private sector wary of new VAT policy changes
Tanzania, March 23 -- Dar es Salaam. The Tanzania Private Sector Foundation (TPSF) has expressed concern about the new value-added tax (VAT) deferral policy, claiming that it may raise import costs and impede new investments, particularly in manufacturing.
VAT deferral allows businesses to postpone paying VAT on imported machinery and equipment (capital goods). This helps with upfront costs associated with setting up or expanding operations.
According to the policy brief issued by the TPSF, previously, as prescribed in the tax laws, importers were enjoying relief for all plants and machinery that had not been procured for resale if their respective VAT exceeded Sh10 million.
The policy was also applied when the capital good is procured...
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