Zanzibaris praise JPM, Dr Shein for Isles’ electricity VAT changes

Several people have commended the Union President Dr John Pombe Magufuli (JPM) for accepting the Zanzibar’s long plea to TANESCO to stop charging Value Added Tax (VAT) on power sold to Zanzibar Electricity Corporation (ZECO). 

Positive views were heard from different corners and all walks of life, where ordinary people, traders, as well as politicians, and academicians, and ZECO staffs hailing the VAT waive a big achievement.

Political leaders including Mr Said Soud Said- national chairperson of the Association for Farmers Party (AFP) and Mr Juma Ali Khatib- deputy national chairperson of ADA-TADEA, said at different occasions that both Magufuli and Dr Ali Mohamed Shein deserve kudos.

“VAT free on electricity to Zanzibar is a big relief to ZECO and the people of Zanzibar,” said Mr Khatib as ZECO’s General Manager Mr Hassan Ali Mbarouk adding that: “We thank President Magufuli, Dr Ali Mohamed Shein and other leaders for ending the VAT saga.”

Last Monday, the union Cabinet session chaired by President Magufuli ended the problem by approving zero per cent Value Added Tax (VAT) for the electricity sold to Zanzibar along with waiving the accumulated 22.9bn/- VAT debt that ZECO owed TANESCO.

The decision was reached during a Cabinet meeting held at the State House in Dar es Salaam, chaired by President John Magufuli.

Those in attendance included Vice-President Samia Suluhu Hassan, Zanzibar President Dr Ali Mohamed Shein, and Chief Secretary Ambassador John Kijazi.

The changes, henceforth, prompts minor amendments of the VAT Law, Article 148 through the Finance Act of 2019, where electricity sold to Zanzibar would be taxed zero per cent of VAT.