DODOMA SPECIAL INVESTMENT AREA ACT

CHAPTER 239
DODOMA SPECIAL INVESTMENT AREA ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

Section

Title

PART I
PRELIMINARY PROVISIONS

1. Short title.

2. Expiry.

3. Application.

4. Interpretation.

PART II
SPECIAL INVESTMENT AREA

5. Declaration of special investment area.

6. Duration and effect of declaration.

PART III
REMISSION OF CUSTOMS DUTIES

7. Construction and duration of application of Cap. 146.

8. Remission of customs duty.

PART IV
REMISSION OF INCOME TAX

9. Construction and duration of application of Cap. 332.

10. Remission of income tax.

PART V
REMISSION OF VAT

11. Construction and duration of application of Cap. 148.

12. Remission of VAT.

PART VI
MISCELLANEOUS PROVISIONS

13. Remission on electricity bills.

14. Bank loans facilities.

15. Remission on water supply charges.

16. Miscellaneous remission upon investment.

17. Specified businesses and industries to be registered.

18. Alteration of area of remissions.

19. Regulations.

20. Powers to be exercised with consultation.

21. Minister may amend Schedules.

22. Restriction in dealing in specified products.

23. Offence for unauthorised dealing in specified products.

SCHEDULES

CHAPTER 239
DODOMA SPECIAL INVESTMENT AREA ACT

Act No. 7 of 1989

An Act to declare a special investment area in Dodoma, to provide for the remission of taxes, duties and other charges and costs so as to attract investments into Dodoma and for connected purposes.

[1st November, 1989]
[G.N. No. 362 of 1989]

PART I
PRELIMINARY PROVISIONS (ss 1-4)

1. Short title

This Act may be cited as the Dodoma Special Investment Area Act.

2. Expiry

(1) This Act shall expire twenty years from the commencement date.

(2) The Minister may, by notice published in the Gazette, and with the prior approval by resolution of the National Assembly, extend the period of application of this Act for such further period or up to such other date as he shall specify in the notice.

(3) Nothing in this section shall be construed as empowering the Minister to reduce the period of operation of this Act, except that if the Minister exercises the power conferred by subsection (3), subsection (2) shall be deemed to have been amended to the extent specified by the Minister in the notice concerned.

3. Application

This Act shall apply throughout the United Republic in relation to persons carrying on such business or other specified investment in Dodoma as are conferred to in this Act for the purposes of conferring upon such persons the benefits in relation to their business or investment in Dodoma as are specified in that behalf by this Act.

4. Interpretation

In this Act, except where the context otherwise requires:–

"Capital Supplies Company" means a subsidiary company which is wholly owned by the Capital Development Authority and includes its successor;

"commencement date" means the day when this Act comes into operation;

"Minister" means the Minister responsible for finance;

"specified business" means any business or trade specified in the Second Schedule to this Act;

"specified industry" means any industry specified, or producing the goods or services specified in the First Schedule to this Act;

"specified product" means any one of the goods or products, specified in the Third Schedule, in relation to which customs duties and sales tax are remitted by this Act.

PART II
SPECIAL INVESTMENT AREA (ss 5-6)

5. Declaration of special investment area

With effect from the commencement date, the whole of the Dodoma Capital Development Area as described under the Dodoma National Capital Planning Order, is hereby declared to be a special investment area for the purposes of this Act.

6. Duration and effect of declaration

(1) Subject to subsection (3) of section 2, the Dodoma Capital Development Area shall continue to be a special investment area for a period of twenty years.

(2) It shall be the duty of the Minister, after consultation with the Minister responsible for capital development, to institute appropriate fiscal and other economic measures for the attraction and benefit of investors in the Dodoma Capital Development Area.

PART III
REMISSION OF CUSTOMS DUTIES (ss 7-8)

7. Construction and duration of application of Cap. 146

(1) This Part shall be read as one with the Customs (Management and Tariff) Act.

(2) The remission conferred by this Part in relation to specified products imported or purchased by the Capital Supplies Company shall, subject to this Act, continue in effect for twenty years from the commencement of this Act.

8. Remission of customs duty

(1) The whole of the customs duties payable on specified products imported or purchased locally from bonded warehouse prior to clearance through customs by or on behalf of the Customs Supplies Company shall, by virtue of this section and without further assurance, be remitted.

(2) With effect from the commencement date, and within the period of twenty years thence, the whole of the customs duties payable in respect of any specified product imported or purchased locally, from bonded warehouse prior to clearance through customs by any company or other body corporate fifty per centum or more of whose share capital is held by the Capital Development Authority shall, by virtue of this section and without further assurance be remitted.

PART IV
REMISSION OF INCOME TAX (ss 9-10)

9. Construction and duration of application of Cap. 332

(1) This Part shall be read as one with the Income Tax Act.

(2) The remission conferred by this Part shall remain in operation for the period or period specified in section 10, and shall apply by virtue of the provisions of this Part and without further assurance.

10. Remission of income tax

(1) With effect from the commencement date, and within the initial period of five years, the whole of the income tax payable by a person in respect of a specified industry whose annual turnover is not less than five million shillings or of any small scale industry certified for that purpose by the Small Industries Development Organisation, established by the Small Industries Development Organisation Act *, shall be remitted; upon the expiration of five years and for the remaining part of the period of this act, fifty per centum of the income tax payable shall be remitted.

(2) With effect from the commencement date, and within the initial period of ten years, the whole of the income tax payable by any company or other body corporate fifty per centum or more of whose share capital is held by the Capital Development Authority shall be remitted; upon the expiration of ten years and for the remaining part of the period of operation of this Act, fifty per centum of the income tax payable shall be remitted.

(3) With effect from the commencement date, and within the initial period five years, the whole of the income tax payable by any company or other body corporate less than fifty per centum of whose share capital is held by the Capital Development Authority shall be remitted; upon the expiration of five years and for the remaining part of the period of operation of this act, fifty per centum of the income tax payable shall be remitted.

PART V
REMISSION OF VAT (ss 11-12)

11. Construction and duration of application of Cap. 148

(1) This Part shall be read as one with the VAT Act.

(3) The whole of the VAT payable on all specified products imported prior to clearance through customs or purchased locally by or on behalf of the Capital Supplies Company shall, by virtue of this section and without further assurance, be remitted.

(4) With effect from the commencement date, and within the period of twenty years thence, the whole of the VAT payable in respect of any specified product imported prior to clearance through Customs or purchased locally by any company or other body corporate fifty per centum or more of whose share capital is held by the Capital Development Authority shall, by virtue of this section and without further assurance be remitted.

12. Remission of VAT

(1) The whole of the VAT payable on all specified products imported prior to clearance through customs or purchased locally by or on behalf of the Capital Supplies Company shall, by virtue of this section and without further assurance be remitted.

(2) With effect from the commencement date, and within the period of twenty years thence, the whole of the VAT payable in respect of any specified product imported prior to clearance through Customs or purchased locally by any company or other body corporate fifty per centum or more of whose share capital is held by the Capital Development Authority shall, by virtue of this section and without further assurance be remitted.

PART VI
MISCELLANEOUS PROVISIONS (ss 13-23)

13. Remission on electricity bills

With effect from the commencement date there shall be remitted fifty per centum of the charges payable in respect of the electric power consumed by every specified industry established in the Dodoma Capital Development Area.

14. Bank loans facilities

The Minister may, by notice in the Gazette, after consultation with appropriate persons involved in the banking sector, make such provisions as may be appropriate for facilitating the availability of investors in Dodoma of more favourable loan terms from all or any of the banks in the United Republic.

15. Remission on water supply charges

With effect from the commencement date there shall be remitted fifty per centum of the charges payable in respect of water consumed by every specified industry established in the Dodoma Capital Development Area.

{mprestriction ids="1,2,3"}

16. Miscellaneous remission upon investment

(1) With effect from the commencement date, with respect to specified business established during the operation of this Act, and within the initial period of five years, all the income tax payable in respect of income derived from the specified business shall be remitted and upon the expiration of five years, fifty per centum of the income tax payable on such income shall be remitted.

(2) The Minister may, by notice published in the Gazette, specify further categories of building other capital investments in relation to which the remission granted under this section shall apply.

17. Specified businesses and industries to be registered

(1) For the purpose of benefiting from these relief measures under this Act, every specified industry and business shall be registered with the Capital Development Authority.

(2) Registration of every specified industry and business shall be done in consultation with the Minister of finance and the Minister responsible for capital development.

18. Alteration of area of remissions

The Minister may, by notice in the Gazette, and with the prior approval by resolution of the National Assembly alter the areas of investment in respect of which remissions are granted by this Act; except that no such alteration shall be made whose purpose or probable consequence would be to discourage investments in the Dodoma Capital Development Area.

19. Regulations

The Minister may make regulations, to be published in the Gazette, for the purpose of the more effective discharge of the purpose and provisions of this Act.

20. Powers to be exercised with consultation

The Minister shall exercise the powers conferred upon him by subsection (2) of section 16, 18, and 19 in consultation with the Minister responsible for capital development.

21. Minister may amend Schedules

The Minister may, after consultation with the Minister responsible for capital development, amend the First, Second and Third Schedules.

22. Restriction in dealing in specified products

(1) No person shall use, except with express permission of the Minister in writing, any specified product otherwise than for the purpose of development of Dodoma Capital Development Area.

(2) No person having the management of any specified product shall sell, transfer, or dispose of any specified product to any person not authorised under this Act, to deal with such product.

(3) Notwithstanding the provisions in subsection (1) and (2) where any specified product is transferred or sold to any other person who is not under this Act entitled to enjoy any exemption or is used for any purpose other than the development of the Dodoma Capital Development Area, any tax on such product shall become due and payable.

23. Offence for unauthorised dealing in specified products

(1) It shall be an offence for any person to sell, transfer or otherwise dispose of, without lawful excuse, any specified goods for use of development or other purposes outside the Dodoma Capital Development Area.

(2) Any person who–

(a) transfers or attempts to transfer, sells or attempts to sell any specified products for the purpose of using such specified products outside the Dodoma Development Area; or

(b) fraudulently or through any other unlawful means obtains or tries to obtain advantage or benefit which, under this Act he is not entitled to; or

(c) being entitled to enjoy any advantage or benefit under this Act, uses that advantage or benefit for purposes other than the purposes intended under this Act,

commits an offence, and is liable upon conviction to a fine of not less than fifty thousand shillings or to imprisonment for a term not exceeding four years or to both such fine and imprisonment; and where the offence involves specified goods which have not been recovered, the court convicting that person shall order him to pay the amount of tax which would have been payable had such tax been collected on such goods.

(3) Regulations made under section 19 may make provision for the control, maintenance and disposal of specified goods.

FIRST SCHEDULE
SPECIFIED INDUSTRIES

(Section 4)

1. Mineral Industries- for the manufacture of or in relation to–

(a) cement;

(b) sheet glass;

(d) aggregates;

(e) concrete articles (concrete poles, concrete pipes, concrete slabs, etc.);

(f) limestone quarry;

(g) asphalt plant;

(h) ceramics; and

(i) glass products.

2. Metal and Engineering Industries- for the manufacture of or in relation to–

(a) iron bars of all shapes;

(b) angle iron;

(d) roofing nails;

(e) ceiling nails;

(f) wires - barbed, fencing, binding;

(g) nuts and bolts;

(h) wood screws;

(i) locks, various types;

(j) hinges;

(k) machine and tool assembling;

(l) metal fabrication - doors, windows, frames, etc.;

(m) weldmesh;

(n) expanded metal;

(o) mosquito gauze;

(p) garages;

(q) rolling steel;

(r) household items - sufuria, frying pans, knives, forks, etc.; and

(s) printing press.

3. Electric Industries- for the manufacture of or in relation to–

(a) wires - earth, flexible, stay, etc.

(b) earth rods;

(d) plugs;

(e) switches;

(f) sockets and socket boxes;

(g) conduits;

(h) bulbs;

(i) fluorescent fittings;

(j) fluorescent tubes;

(k) electric fans;

(l) air conditioners;

(m) refrigerators;

(n) deep freezers;

(o) electric cookers and ovens;

(p) water heaters;

(q) radio assembly;

(r) batteries;

(s) circuit breakers;

(t) lampholders, shades and fittings; and

(u) transformers.

4. Timber and Timber Products Industries:

(a) wood processing;

(b) furniture making;

(d) frames, doors and windows.

5. Chemical Industries-

(a) paints factories;

(b) polishes - wood, floor, shoes, etc.;

(d) soap;

(e) pharmaceuticals;

(f) pesticides;

(g) fertilizers; and

(h) tooth paste.

6. Food Industries-

(a) breweries, wineries and distilleries;

(b) soft drink manufacturers;

(d) milling machines;

(e) animal feeds; and

(f) edible oils.

7. Textiles and Tanneries-

(a) textile mills;

(b) garment manufacturers;

(d) hides and skins processing.

SECOND SCHEDULE
SPECIFIED BUSINESS

(Section 4)

(a) Dealers in building materials;

(b) The business of transporters and haulers, within headquarters in Dodoma;

(d) The business of sellers of food;

(e) The business of hotel keeping;

(f) Running of guest houses;

(g) Hostel owning and operating;

(h) Owners of office buildings;

(i) Houses to let;

(j) Workshops to rent;

(k) Godowns to let;

(l) Operating of laundries.

THIRD SCHEDULE
SPECIFIED PRODUCTS AND SERVICES

(Section 4)

1. Cement, Kiln and Quarry Products

(a) cement;

(b) aggregates; and

2. Iron and Steel Products

(a) NSR/HTD bars, all sizes - 6mm, 8mm, 10mm, 12mm, 16mm, 20mm, 25mm, 30mm, 32mm, etc.;

(b) M.S. angle iron;

(d) fencing wire;

(e) expanded metal;

(f) weld mesh;

(g) mosquito gauze;

(h) M.S. flat bars;

(i) butt hinges;

(j) mortise locks;

(k) pad locks;

(l) night latches;

(m) flush doors;

(n) S.H. stays;

(o) wood screws;

(p) wire nails;

(q) roofing nails;

(r) ceiling nails;

(s) binding wire;

(t) flat sheets;

(u) louvre frames - iron, aluminium;

(v) curtain springs;

(w) steel windows;

(x) steel doors; and

(y) steel frames.

3. Electrical Items.

(a) ceiling roses;

(b) tube lights;

(d) electric bulbs - various wattage;

(e) lamp holders;

(f) lamp shades with fittings;

(g) bedside lamps;

(h) EW BCB 60 Amps single pole MCB;

(i) flush switches;

(j) cable clips;

(k) PVC cable - various sizes - 1.5mmFIND2"/>, 2.5mmFIND2"/>_{, etc.;}

(l) conduit pipes - various sizes - ½", 3/4", 1", etc.;

(m) GCH consumer unit;

(n) 1 gang socket box metal/plastic;

(o) 2 gang socket box metal/plastic;

(p) junction boxes;

(q) electrical cookers - various types;

(r) cooker control units;

(s) refrigerators;

(t) deep freezers;

(u) pin plugs - various sizes;

(v) switch sockets - various sizes;

(w) earth rods;

(x) earth wire;

(y) flexible wire;

(z) stay wire;

(aa) shackle insulators - various sizes;

(bb) A.A. bare conductors;

(cc) water heaters;

(dd) circuit breakers;

(ee) electric fans;

(ff) electric irons;

(gg) radios;

(hh) cassettes; and

(ii) batteries.

4. Pipes and Pipe Fittings.

(a) pipe galvanised 1/2"- 4";

(b) band galvanised 1/2"- 4";

(d) nipple galvanised 1/2"- 4";

(e) plug galvanised 1/2"- 4";

(f) socket plain 1/2"- 4";

(g) tee galvanised 1/2"- 4";

(h) union galvanised 1/2"-4";

(i) elbow reducers;

(j) socket reducers;

(k) tee reducers;

(l) stop cocks;

(m) bill cocks;

(n) gate valves 1/2"- 3";

(o) pillar tape 1/4"- 1";

(p) PVC soil pipes 1"- 4";

(q) bush reducers;

(r) "S" Traps 4";

(s) "P" Traps 4";

(t) Ben Cast iron 4";

(u) "Y" Cast iron 4";

(v) back nut 1/2"- 2";

(w) gully traps 4";

(x) pipe- cast iron 4"- 6".

5. Bitumen, Paints and Oils.

(a) bitumen MCI/500/700;

(b) wood preservative;

(d) gloss paint;

(e) emulsion paint;

(f) thinners;

(g) turpentine;

(h) cement paint, floor paint;

(i) putty for steel;

(j) red oxide paint;

(k) varnish;

(l) wood preservative oil; and

(m) crack filler.

6. Sanitary Ware.

(a) W.C. European type;

(b) W.C. Asian type;

(d) urinals;

(e) toilet seat covers;

(f) cistern tanks L/L., H/L.;

(g) waste overflows;

(h) water storage tanks;

(i) shower roses;

(j) telephone showers;

(k) wash hand basins;

(l) basin traps;

(m) kitchen sinks;

(n) hospital sinks;

(o) soap holders;

(p) toilet paper holders; and

(q) towel holders.

7. Roofing and Ceiling Materials.

(a) galvanised corrugated/plain iron sheets;

(b) asbestos corrugated/plain sheets;

(d) roofing tiles - cement and clay;

(e) ridgings;

(f) wall tiles;

(g) roofing screws;

(h) hard board;

(i) soft board;

(j) chipboard; and

(k) damp roof course.

8. Glass Products.

(a) glass sheets;

(b) louvre glass;

(d) dressing mirror.

9. Timber and Timber Products.

(a) soft wood;

(b) hard wood;

(d) fibre boards;

(e) doors;

(f) windows;

(g) back boards; and

(h) construction timber - i.e. trusses, paulins, rafters, etc.

10. Tools and Plants.

(a) glass cutters;

(b) pipe cutters;

(d) hacksaw frames;

(e) hacksaw blades;

(f) sand papers;

(g) painting brushes;

(h) grass slashers;

(i) garden shears;

(j) buckets - iron and plastic;

(k) watering cans;

(l) pangas;

(m) axes;

(n) hoes;

(o) wheelbarrows;

(p) karais;

(q) brick-making machines;

(r) mwiko wa kujengea; and

(s) plumb line.

11. Spare Parts for Vehicles and Construction Equipment.

12. Stationery.

(a) printing paper;

(b) tracing paper;

(d) architect's drawing equipment; and

(e) general stationery.

13. Others

(a) beds;

(b) mattresses;

(d) carpets; and

(e) curtain materials.

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