Drafting a new Excise Tax Act underway
April 15, 2021
A new Excise Tax Bill is expected to be presented to the National Assembly for its consideration.
The bill will replace the current Excise Tax Act 2009.
The Cabinet gave its approval for the drafting of the new legislation in its meeting held on 14th April, 2021.
The new Excise Tax Act is part of tax reforms the Minister of Finance, Economic Planning and Trade, Naadir Hassan, announced in his Budget Speech, delivered on 16th February, before the National Assembly.
The Principal Secretary for Trade, Ms. Cillia Mangroo said the new act will “give more authority to the Customs Division in the administration of control measures, whilst also providing for better clarity, transparency and guidance for the manufacturers and importers, on excise tax requirements.”
This initiative was made possible through funding under the Southern African Development Community’s (SADC) Trade Related Facility (TRF) program, with the objective of enhancing the excise tax management regime.
Consultations have been held with the industry, along with the general public. All stakeholders will have further opportunities to provide inputs during the white paper stage of the ensuing legislative process.
Sensitisation exercises will also be conducted for stakeholders with regards to the changes that will be brought as a result of the modernizing of the legislation.
Subject to approval by the National Assembly, the new Act is expected to come into force by January 2022.