The government has listened to appeals by several members of parliament and hel consultations with some religious leaders on Tuesday, he said. I met President Jakaya Kikwete today (yesterday) on the matter and he allowed the government to reverse its earlier proposal to cancel the relief, Mr Pinda told a news conference.
The premier said the NGOs and religious organisations will now continue to enjoy the relief.
The Finance Minister, Mr Mustafa Mkulo, on Thursday last week told the National Assembly that VAT Special Relief on NGOs and all religious organizations was being abolished.
The measure will apply to all religious denominations including Muslims, Christians, Hindus etc.
However, tool of worship shall continue to enjoy the relief, he explained. Mr Mkulo said that the facility was being abused by some religious leaders and the country lost a lot of revenue. The MPs were, however, deeply divided on the measure, some saying that abolition of the relief was improper because the religious institutions secured goods for hospitals, schools and other services from foreign donors.
They said subjecting donations to taxation might scare away people who were helping the country. The MPs also said NGOs and religious institutions were currently playing a significant role in delivery of important social services like health, education and water supply, particularly in rural areas.
The prime minister said that the government would now form a team involving officials from the Tanzania Revenue Authority (TRA) and religious institutions to investigate the alleged abuse and propose the way forward. Minister Mkulo is today scheduled to wind up debate on the governments budget for 2009/10 fiscal year.
Daily News
Post published in: Zimbabwe News