Dar es Salaam. The new financial year starts today, allowing new consumer prices for goods and services to take effect.
Parliament passed the Finance Bill 2014 on Saturday, giving the government power to implement its fiscal plans as presented by Finance minister Saada Mkuya in her maiden Budget last month.
Consumers will have to adjust their daily expenditure as new prices kick in following the tax and other fiscal changes being effected from July 1.
If you are a boozer or smoker, the usual suspects when it comes to increasing taxes, you may start spending more as the government increased excise duty on both alcoholic beverages and cigarettes.
The government also increased the excise duty on soft drinks like fruit juice at different rates but the pinch will be more felt when buying imported drinks.
Some retailers tend to change prices as early as the first day of July even if their stocks were procured before the new fiscal year.
The government took some tax measure to collect Sh19.8 trillion estimated for both recurrent and development expenditure this fiscal year.
Employers who pay their workers at minimum wage line will be required to spend more starting this month as the government raised the minimum wage. Directors in various boards should also get prepared for the 15 per cent to be deducted as withholding tax from their payment.
Importers of both cement and furniture will also be required to pay more for the products starting this month as the government removed cement from the list of considerable deemed capital goods and slap a 15 per cent excise duty to imported furniture.
Foreign investors who usually come through the Tanzania Investment Centre are required to dig deeper into their pocket to qualify as strategic investors following the government decision to raise their minimum capital to at least $50 million this financial year up from $20 million.
Car importers should be aware also that vehicles older than eight years will be subject to 30 per cent extra charges instead of a 10-year limit enjoyed before.
On the other hand, the July 1st will be a relief to some sectors as they were positively affected by the changes.
Leather exporters are among those who will be relieved by reduction of export levy from Sh900 to Sh600 per kilogram.
Workers will also get a slight relief of tax deductions as the tax band was reduced from 13 per cent to 12 per cent.
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