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Daily Archives: June 17, 2012

Australian Dollar Overtakes Us Dollar!

THE Australian dollar has positioned itself above parity with its US counterpart and could move higher in the wake of this weekend’s Greek  elections.


  At 5pm AEST on Friday the local unit was trading at 100.16 US cents up from 99.48 US cents on Thursday.
It rose to 79.05 Japanese yen, up from 79.01 yen on Thursday and 79.36 euro cents, up from 79.14 euro cents.

ANZ foreign exchange strategist Andrew Salter said the Australian dollar  rallied after the world’s biggest central banks indicated they were  willing to stabilise markets in the event of a negative fallout to  Greece’s elections by providing liquidity.

“That pushed us up to parity and we’ve just traded around there all day really,” he said.
News reports on Thursday night indicated central banks from the G20 group of nations, which makes up the world’s largest economies, were prepared to ensure cash was flowing through financial systems if severe market  strains emerge on Monday.
Greek elections held last month saw the ruling coalition thrown out  of office amid widespread anger over austerity measures imposed in order to obtain bailout funding from the European Union.
However, rival political parties were unable to form a government in the wake of that  result, forcing the country to go back to the polls on Sunday.
The election has been seen as a referendum on the country’s membership of  the euro zone with left wing part Syriza vowing to abandon the austerity measures if elected.
Mr Salter said the result of the election would have a major impact on financial markets.
“All eyes are on Greece at the moment.”

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Mbunge Wa CCM Kuipinga Bajeti

Dodoma, Tanzania – Mwandishi wa MF Blog

MBUNGE wa Kisesa, Luhaga Mpina (CCM) ameapa kuipinga bajeti ya Serikali iliyowasilishwa bungeni mjini Dodoma, kwa maelezo kwamba imejaa ulaji wa wakubwa kupitia posho, warsha na safari zao za nje huku mamilioni ya Watanzania masikini wakifa kwa kukosa matibabu.

Amewaeleza waandishi wa habari kuwa, bajeti hiyo inakiuka azimio la Bunge kwamba kwa kila mwaka wa fedha angalau asilimia 35 itengwe kwa ajili ya miradi ya maendeleo na fedha za matumizi ya kawaida ziwe asilimia 65.

Lakini Mpina ambaye pia ni mjumbe wa Kamati ya Bunge ya Fedha na Uchumi alisema bajeti iliyowasilishwa na Waziri wa Fedha, Dk William Mgimwa, waliipinga kuanzia kwenye Kamati ya Fedha na kuishauri Serikali iibomoe, lakini hawakufanya hivyo.

Mbunge huyo amesema, yuko tayari kufukuzwa CCM akitetea fedha zaidi zitengwe kwa ajili ya miradi ya maendeleo, kwani warsha, sherehe, ununuzi wa samani, magari ya kifahari unaweza kupunguzwa au kuahirishwa ili kuwapa Watanzania maisha bora.

“Hiki ninachofanya si usaliti kwa chama, kwani ninachotetea ni kukisaidia chama chetu kiweze kutekeleza miradi yenye manufaa kwa wananchi na si kutenga fedha nyingi kwa posho na sherehe,” alisema Mbunge huyo.

Akichambua bajeti hiyo, Mpina alisema katika azimio la Bunge iliazimiwa kitengwe kiasi kisichopungua Sh trilioni 2.7 kutoka mapato ya ndani na zielekezwe kutekeleza mpango huo.

“Hivyo bajeti ambayo imewasilishwa na waziri si sahihi kwa mujibu wa mpango wa maelekezo ya Bunge,” alisema.

Akitoa mfano wa ulaji huo, Mbunge huyo alisema mafungu nane tu ya Wizara ya Nishati na Madini na  Fedha yameongezwa kiasi cha Sh bilioni 4.8 kwa ajili ya posho na safari za ndani na nje ya nchi, wakati fedha hizo zingepunguzwa na kuelekezwa kwenye miradi ya maendeleo.

Alisisitiza kuwa kitendo cha Serikali kutenga Sh trilioni 2.2 badala ya Sh trilioni 2.7 ambayo ni tofauti ya Sh bilioni 500 kugharimia miradi iliyoainishwa katika mpango huo,  kumesababisha miradi mingi kutengewa fedha kidogo na mingine mingi kukosa fedha kabisa, hali ambayo alidai inazorotesha utekelezaji na maana ya kuwa na mpango.

Mpina alisema kibaya zaidi, katika bajeti hiyo mapato ya ndani yameongezeka hadi Sh trilioni 1.5 huku matumizi ya kawaida yakipanda hadi Sh trilioni 1.9 wakati fedha za maendeleo zikipungua na kuwa Sh bilioni 397.8 ikilinganishwa na mwaka wa fedha wa 2011/12.

“Hapa inajidhihirisha kuwa Serikali haina nia ya dhati ya kupunguza matumizi ya kawaida,” alisema Mpina. Alisema kwa kipindi kirefu, imekuwa ikiahidi kupunguza matumizi ya kawaida ili kuongeza kasi ya utoaji huduma na uwekezaji katika sekta zinazokuza uchumi na kupunguza umasikini; lakini hivi sasa pato kuu la Taifa linatumika kuendesha Serikali.

Mpina alisema wakati Serikali ikiendekeza matumizi makubwa yasiyo na tija, Watanzania wanakufa kwa kukosa huduma za tiba, dawa, waganga, maji safi na salama, elimu bora kutokana na upungufu mkubwa wa madarasa, nyumba za walimu, vifaa vya kufundishia na maabara.

Pia miundombinu mibovu ya barabara, umeme na reli, ukosefu wa viwanda vya kuongeza thamani kunakosababisha wakulima kuuza mazao yao kwa bei ndogo, hasa pamba, mkonge, korosho na mifugo.

Alisema mpango wa maendeleo ni mkataba kati ya wananchi na Serikali, lazima wabunge ambao ni wawakilishi wa wananchi waulinde kwa nguvu zote na kwa gharama yoyote.

Alisema kama Serikali ilipata fedha za kufidia benki na wafanyabiashara walioathirika na mtikisiko wa uchumi kwa jumla ya Sh trilioni 1.7 “iweje leo ishindwe kupata Sh bilioni 500 kugharimia yaliyoainishwa katika mpango wa maendeleo?”

Mwenyekiti wa Kamati ya Kudumu ya Bunge ya Fedha na Uchumi, Andrew Chenge alisema ingawa Waziri wa Fedha ameanza kwa mwelekeo mzuri, lakini matumizi ya kawaida ya Serikali yanapaswa kugharimiwa na fedha za ndani.

Mbali ya kusisitiza bajeti ya maendeleo iongezwe hadi asilimia 35, amesema kama Watanzania wanataka uchumi ukue na kuondoka na umasikini, lazima kilimo kibadilishwe na kiwe chenye tija.

“Mwelekeo mzuri, wameanza vizuri,” alisema Chenge ambaye pia ni Mbunge wa Bariadi Magharibi (CCM) aliyepata kuwa Waziri katika Awamu ya Nne.

Mwenyekiti huyo aliyechaguliwa hivi karibuni kuongoza Kamati hiyo ya Bunge, alisema licha ya kuanza vyema yapo mambo ambayo hayakumridhisha katika bajeti.

“Lazima tufanye matumizi ya kawaida kwa kutumia mapato ya ndani. Hili tulilizungumza katika Kamati yetu wakati wa mashauriano na Serikali. Lakini tulisema kwa kuwa Waziri ni mgeni, ndio kwanza ameteuliwa, tumpe muda, ajipange hadi bajeti ya 2013/14,” alisema Chenge.

Alisema ni vyema pia sekta binafsi ikawekewa mazingira mazuri ili kushawishi ukuaji wa uchumi; huku akieleza kwamba tayari kampuni za bia na sigara zimeeleza kusikitishwa na ongezeko la bei katika bidhaa zao.

Kuhusu kilimo, alisema lazima Serikali isaidie kuweka miundombinu bora ya kilimo na kuhakikisha barabara zinapitika wakati wote ili wakulima waweze kutoa mazao yao mashambani na kuyapeleka sokoni.

Alisema si hivyo tu, bajeti inapaswa kulenga watu wa vijijini ambako ndiko waliko asilimia kubwa ambao ni wakulima, ili kuzalisha kwa wingi na kuiwezesha nchi kuwa na uchumi imara.

Mbunge wa Simanjiro, Christopher ole Sendeka (CCM), alisema baadhi ya maeneo, Serikali haijafanya vizuri katika bajeti ikiwamo kutoa nafuu ya kodi kwa kampuni kubwa zikiwamo za madini.

Alisema unafuu huo wa kodi haufai kwa kampuni na viwanda vikubwa, wakati wanapaswa kulipa kodi kubwa.

Aidha, Sendeka alilalamikia kiwango kidogo kilichotengwa kwa umeme, Sh bilioni 400, akisema hazitoshelezi kwa sababu ya gharama kubwa za kukodi mitambo ya kuzalisha umeme zinazobebwa na Shirika la Umeme Tanzania (Tanesco).

Kiongozi wa Upinzani Bungeni, Freeman Mbowe, alitaka Serikali itaje kiasi cha mishahara kilichoongezwa, badala ya kuachiwa waziri wa kisekta, kwa sababu hilo ni moja ya maeneo yanayohitaji uzito.

Aidha, alilalamikia matumizi kuwa makubwa, kutofutwa kwa posho, mfumuko wa bei akisema umejikita katika kuagiza chakula nje na kuanzisha kilimo cha umwagiliaji katika mabonde makubwa nchini.

Mbunge wa Kigoma Kaskazini ambaye pia ni Naibu Kiongozi wa Upinzani Bungeni,  Kabwe Zitto alisema bajeti hiyo imejikita zaidi katika mikopo na madeni.

Katika hotuba yake ya Bajeti, Dk Mgimwa alisema katika bajeti hiyo yenye kubeba Sh trilioni 15, asilimia 70 itakuwa kwa matumizi ya kawaida na asilimia 30 kwa matumizi ya maendeleo.

Wakati hayo yakijiri, wabunge wa CCM walikuwa na kikao jana asubuhi; na miongoni mwao walieleza kutoridhishwa ni kutofutwa kwa Kodi ya Ongezeko la Thamani (VAT) katika malighafi za viwanda vya nguo na mavazi.

Mmoja wa wabunge hao wa CCM, alieleza kuwa licha ya Waziri Mkuu Mizengo Pinda kuunda kamati maalumu ya wadau wa sekta ya pamba na viwanda vyake, mapendekezo ya kamati hiyo hakuyazingatiwa katika bajeti.

Mapendekezo yalikuwa ni viwanda kupewa msamaha wa VAT kwenye bidhaa za nguo na mavazi, na ilielezwa kuwa hilo linawezekana kwa sababu kiwango kinachokusanywa sasa ni karibu Sh bilioni moja kwa mwaka.

 
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Posted by on June 17, 2012 in Tanzania News

 

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Tanzania Budget 2012/2013 – An Overview

BUDGET OBJECTIVES

  • Increase Domestic revenues to 18% of GDP in 2012/2013 compared to the likely outturn of 16.9 percent in 2011/2012;
  • Continue with efforts to curb inflation to a single Digit;
  • Maintain a stable and market determinedexchange rate;
  •  Increase Access to Financial Services;
  • Increase real GDP growth rate of 6.8 percent in 2012 from 6.4 percent of 2011;
  •  Increase Credit to private sector to 20% of GDP by end  June 2013 in line with measures to curb inflation;
  •  Improve economic infrastructure, including electricity, roads, railways and ports;
  • Safeguard and sustain achievements realised in the social sector;
  • Maintain foreign reserves to cover 4.5 months of import of goods and services;
  •  Develop the country’s capability to endure economic and financial crisis and effective participation in regional and international arrangement;
  • Strengthen public and pricate partneship (PPP) arrangement with the view to widen opportunities for increamenting development projects;
  • Improve business enviroment for small and medium entreprises and;
  • Strengthen good governance and counterbility.

SNAPSHOT:

REVENUE                                                                     Shillings (in Millions)

A. Domestic Revenue                                                   8,714,671

B. Local Govt Auth. (LGAs Own source)                     362,206

C. General Budget Support                                          842,487

D. Foreign Loans and Grants                                      2,314,231

E. Domestic Borrowing                                                1,631,957

F. Non-Concessional Borrowing                                   1,254,092

TOTAL REVENUE                                                        15,119,644

EXPENDITURE

G. Recurrent Expenditure -                                            10,591,805

                       - Services                      2,745,056

                       -Wages and salaries     3,781,100

                      - Other Charges              4,065,649

                      – Ministries                       3,311,399

                       – Regions                            49,701

      - LGAs                               704,549
H. Development Expenditure  -                                               4,527,839
    – Local        2,213,608
    – Foreign    2,314,231

TOTAL EXPENDITURE                                                         15,119,644

BUDGET TARGET:

The Government targets to collect domestic revenues (excluding LGA’s own source) amounting to Shillings 8,714.7 billion equivalent to 18% of GDP.

PRIORITY AREAS:

1. Infrastructure

  • Electricity; Alocating Tshs.498.9 billion and impremetation of gas pipeline construction project from Mtwara to Dar es Salaam.
  • Transportation; Strengthening Central railways which involve renovation of the train engnes and wagons and development of the port of Lake Tanganyika.
  •  Cean and safe water.
  • Information and Comunications Technology (ICT)
2. Agriculture, Fisheries and Livestock
  • Strengthen the implementation of Kilimo kwanza policy.
  • Industrial Development.
  • Human resources and social services development.
  • Tourism.
  • Financial Services.

3. High Inflation

    • Tanzania is facing several challenges including high inflation rates which declined from 19.8% in december, 2011 to n18.7% in April, 2012. the main causes of high inflation rates are high eectricity tarrif, high prices of oil and food- especially rice and sugar prices. For example during April 2012 food contributed 24.7% while electricity and fuel contributed 24.9% of inflation. Core Inflation, which includes food and enery prices, is still at singledigit of 8.8%

CHANGES IN TAXES:

1. The Value Added Tax (VAT) Act, Cap 148

  • Introduction of VAT rate at 10% for selected VAT relieved beneficiaries enjoying special relief under the third schedule of the Value Added Tax Act. To effect private companies, individuals and TIC Certificate holders except those who are enjoying exemptions under the existing agreements. Also to affect Non-Governmental Organizations except those which are providing donations such as food supplies and medicaments to children and orphanage care centers and schools.
  • Electronic Fiscal devices (EFDs) to be VAT exempt.
  • Exempt VAT on various equipments  that will be used for storage, transportation, and distribution of natural gas (Compressed Natural Gas and piped Natural Gas)

2.  The Income Tax Act, Cap 332

  • Complete income tax exemption provided to individuals with turnover of Tshs. 3,000,000 or less;
  • Interest earned by non-residents from banks will now be subject to 10% withholding tax. The proposed measure is intended to create a fair playing field to all taxpayers.
  • Imposing Capital gains Tax on sale of shares of a local company by its parent company or any offshore company. this measure is intended to control tax avoidance malpractice.
  • Exempting Income tax to Holders of Gaming licences in respect of incomes on which tax has been paid under Gaming Act. Abolishing the exemption that is currently provided under section 54(2) of the Income Tax Act to a resident corporation which holds 25% shares or more so that dividends of the corporation will now be taxed at a reduced rate of 5%.
  • Adjust PAYE threshold as a result of enhancement of salary scales from Tshs. 135,000 to Tshs. 170,000. Introduce exemption of Income Tax to the Dar es Salaam Stock exchange (DSE)

3. The Excise (Management and Tariff) Act, Cap 147

      • Abolish Excise duty on Heavy Furnance oil.
      •  introduce Excise Duty on Music and films products (Effective from 1st January, 2013).
      • Abolish exemption of Excise duty on imported non-utily motor vehicles for all beneficiaries. To introduce excise duty of Tshs.83 per liter on imported fruit juices while locally produced fruit juices will attract excise duty of Tshs.8 per liter.
      • Amend the fuel levy exemption that was granted during the 2011/2012 budget for the fuel to be used by the oil and gas explorers to introduce to ntroduce excise duty as it was intended.
      • Soft drinks, beers, spirit, cigarettes and wine duties going up. Excise duty on Natural gas for industrial use at the rate of Tshs. 0.35 per cubic feet.
      • Increase in Excise duty on Airtime from 10% to 12%

4. The Export Levy Act, Cap 196

  • Increasingan export duty on raw hides from 40% or Shillings 400 per kilogram to 90% or Shillings 900 per each kilogram, whicheveris greater.

5. The Gaming Act, Cap 41

  • Increase Gaming Tax for casino from shillings 13% of gross gaming revenue to 15 per cent of gross gaming revenue.
  •  Introduce gaming tax on sports betting at a rate f 6% of the total stakes.
  •  Introduce  gaming tax on ‘SMS Lotteries” at a rate 0f 43%
  • Introduce gaming tax of 15% on internet casino.
  •  Establish clause in the Game of Chance Act which will explicitly state that the Gaming Tax shall be a final tax

6. The Motor Vehicle Registration and Transfer Act, Cap 124

  • Introduce personalised plate numbers for shillings 5,000,000 for 3 years.
  • Registration and transfer charges becomes expensive.
  • Importation of motor vehicles older than 8 years from the year of manufacturer will now be subject to the excise duty of 20%

7. The Airport Departure Service Charges Act, Cap 365

  • Increase in Airport Service Charges; From USD 30 to USD 40 for International travel and from Tshs. 5,000 to Tshs. 10,000 for local travel.

8. East African Develpment Bank (EADB) Act, Cap 231

  • Provide immunity status to the properties owned by the bank including houses, deposits, monies, and bank account against legal proceedings, court decisions and nationalizations/acquisitions acts.
  • Providing corporate status.
  • Empower the Minister for Finance to implement the decisions of the EADB’s governing board, by amending the schedule to this Act through the Government Notice.
  • Define the bank’s properties as including its houses, financial deposits entrusted to EADB for supervision.

9. The East African Community Customs management Act, 2004

These are to be implemented across the EAC partner states. The main Objective of the proposed changes is to enhance industrial production, improve transportation, health services, livestock development and communicationn sectors.

    • Extend the stay of application of CET rate of 35% on wheat grain and apply the CET rate of 0% for the period of one year.
    • Increase the CET rate on galvanized wire from 0% to 10%.
    • Split the tarrif line under HS Code 2106.90.91 in order to grant exemption of import duty to nfood supplements and mineral premix used in fortification of food supplements for feeding infants.
    • Redue the CET rate on set Top Boxes from 25% to 0%.
    • Reduce the CET rate on electricity from 10% to 0%.
    • Reduce the CET rate on inner glass flask used in thermos
    • Split the tariff line under HS Code 8523.80.00 in order to apply the CET rate of 0% on software instead of 25%.
    •  Grant duty remission to soap manufacturers using Palm Stearin, RDB by charging a duty rate of 0% instead of 10%.
    • Grant duty remission to soap manufacturers using LABSA as raw materials  from 10% to 0% for a period of one year.
    • Reduce the CET rate from 10% to 0% on cathodes and selections of cathodes.
    • Coninue applying the CET rate of 25% instead of 35% on cement for the period of one year.
    • Grant duty remission to lubricants producers using castor oil and its fractions as raw material from the CET rate of 10% to 0%.
    • Split HS Code 7308.90.90 to provide for the road guards rils and apply the CET rate of 10% instead of 25%.
    • Introduction of exemption of import duty tomachinery and spare parts used in mining activities.
    • Excludes spare parts of motor vehicles that will be imported by the mining companies.
    • Refridgerated trailers to be accorded same treatment as refrigirated trucks which are exempt from import duty to encourage distribution of fresh products like milk and meat.
    •  Grant duty remission to producers/manufacturer of medical diagnostic kits.
    • Grant Exemption of import duty to honey refiners, honey strainers,honey pumps, hive tols, queen rearing equipments and protective gears.
    • Continue granting exemption of import duty to Armed forces Canteen Orgnization for the period of one year.
    • Provide duty remission to producers of nutritious food/profducts for feeding infants facing malnutrition and persons suffering from HIV/AIDS in the country.
 

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