Government, MPs deadlocked on Finance Bill

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Dodoma. The debate on the Finance Bill 2016 was postponed for the second time yesterday as MPs and the government remained deadlocked on at least four tax measures which are key in the smooth passing of the Law, The Citizen has learnt.

The MPs, mostly from the ruling CCM, want the government to drop a proposal for mandatory listing – at the Dar es Salaam Stock Exchange (DSE) – of shares for mobile phone firms and imposition of Value Added Tax (VAT) on tourism services.

Many MPs also want the government to scrap the proposal for an increase in the registration fee for motorcycles and tricycles from Sh45,000 to Sh 95,000 and a proposal to remove tax exemption on disposal of shares listed on the DSE.

But reports from Dodoma say the government is reluctant to introduce any change in the Sh29.5 trillion budget for the 2016/2017 financial year, whose endorsement will allow the government to implement the tax measures highlighted in the document.

The new deadlock comes two days after Parliament unanimously endorsed the Sh29.5 trillion revenue and expenditure plan on Monday. Some MPs believe the passing of the budget without amendments is meant to ensure that the House met provisions of some of its own Standing Orders.

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