Q&A – 21 September 2015

VAT exemption under new act

About a decade ago our company entered into an agreement with the government for exploration and then mining of certain minerals. The agreement provided for exemption on VAT which had the force of law as the VAT Act also had such a provision. My reading of the new VAT Act is that not all VAT is exempt. My question is what will prevail- the agreement that the company entered into, upon whose reliance the company invested, or the new VAT Act which doesn’t fully allow the company to enjoy the exemption? Can the government change the law to disrespect an agreement it signed?
OG, Dar

The VAT Act 2014 has provisions that ensure that any VAT exemption for companies like yourselves that you enjoyed under the old VAT Act and which exemptions were concluded through a binding agreement are respected and you will continue to enjoy such benefit.

This is provided in section 95(2) of the VAT Act 2014 which states “the Value Added Tax Act is hereby repealed. Notwithstanding subsection (1)-(a) regulations, rules, orders or notices made under the repealed Value Added Tax Act and in force shall continue to be in force until they are revoked, amended or cancelled by regulations, rules, orders or notices made under this Act; (b) where the Government of the United Republic has concluded a binding agreement relating to exploration and prospecting of minerals, gas or oil with a person before the commencement of this Act, the provisions of the repealed Act relating to value added tax relief shall continue to apply to the extent provided for in the agreement;
This is further reinforced by regulation 33 of the Value Added Tax (General) Regulations, 2015 which states that subject to section 95(2) of the VAT Act-(a) an application by a person for value added tax relief which falls within an agreement relating to exploration and prospecting of minerals, gas or oil made before the commencement of this Act.

The Government has stated on numerous occasions that binding agreements it enters into are respected.

In a globalized economy, and where there is intense competition to attract FDI, the Government cannot afford not sticking to terms of agreements it enters into.

Burping an offence

Is burping an offence in Tanzania? I am an expatriate working for a multinational company and the HR manager called me in and told me that my burping after a meal during lunch break was an offence under Tanzanian law. Is this true?
YU, Moshi

We don’t believe that burping is an offence unless you burp all the time, or intentionally on people all the time.

We are not sure what exactly your action is, but if it is a one off burp, even if everyday but discretely then you should be fine.

Notwithstanding the above, we must cite sections of the Penal Code which actually create such offences.

Section 170 states that any person who does an act not authorized by law or omits to discharge a legal duty and thereby causes any common injury or danger or annoyance, or obstructs or causes inconvenience to the public in the exercise of common rights, commits the misdemeanour termed a “common nuisance”, and is liable to imprisonment for one year.

It is immaterial that the act or omission complained of is convenient to a larger number of the public than it inconveniences, but the fact that it facilitates the lawful exercise of their rights by a part of the public may show that it is not a nuisance to any of the public.

Your frequent burping could be deemed as annoyance or causing inconvenience to the public, hence a nuisance and an offence under our penal statute.

Furthermore section 185 states that any person who voluntarily vitiates the atmosphere in any place so as to make it noxious to the health of persons in
general dwelling or carrying on business in the neighbourhood or passing along a public way, is guilty of a misdemeanour.

The frequent voluntary and intentional burping or farting could fall foul of the above section of law.

When researching the above, we found that in India a new bill makes it illegal to burp in public. The Control Your Food Habits and Flatulence Law 2014 states that burping in public can lead to 7 years rigorous imprisonment and a fine.

We are unsure if this is still the position of the law but this is a specific legislation on burping.

Having two Wills

I am a foreign national and wish to make two Wills. What does the law say about having two different Wills so that I can apply for two different jurisdictions?
YE, Dar

Wills are like marriage certificates, in that they apply anywhere in the world.

For example your Tanzanian marriage certificate is valid throughout the world.

You do not need to get married to your wife every time you settle outside the country. In a similar manner, it is not very normal to have two Wills.

Having said the above, if you have foreign assets in addition to local assets, and if the foreign assets require a separate Will, then you have no choice but to have a second Will to apply to such foreign assets.

However we would advise that the both Wills refer to each other so that there is no confusion when probates are being issued.

In a recent English case, there was considerable confusion for the heirs of a man who died with two wills– one made in England and the other in a foreign country where he owned property.

The difficulty arose because his foreign will – which was only intended to apply to the assets he owned in the foreign country– specified that it revoked all prior wills.

If you are intending to have two separate Wills, it is strongly recommended that you contact a lawyer