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
THE 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 G.N. No. 63 of 1978">

   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.

   (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 after the commencement of this 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.

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