Nchemba orders tax pay on IPTL money

Tax must be paid for any money received from the controversial Tegeta escrow account before 31st December, Deputy Minister for Finance and Economic Affairs Mwigulu Nchemba has ordered.

The one month long ultimatum was issued yesterday morning in parliament where debate on the escrow account raged on for the third and final day.


“I want to make it very clear that all beneficiaries of the money must pay the right taxes before 31st December,” Deputy Minister Nchemba ordered.
“Failure of which they will face the law,” he said to resounding applause from the MPs.

“All other relevant taxes that were not paid diligently by the warring parties are also to be paid,” he added and went on to instruct the Tanzania Revenue Authority (TRA) to start taking necessary measures to enforce the order.

Deputy Minister Nchemba went on to explain that, taxes in escrow fund transfers are in three categories, Capital Gains Tax, Value Added Tax (VAT) and Income Tax.

Mwibara MP Kangi Lugola (CCM) maintained that the Controller and Auditor General’s position as to whether the escrow monies are public or not is ambiguous and called for specifications.

Minister of State in the PM's Office for Regional Administration  and Local government Hawa  Ghasia asked for PAC to verify its contentions including claims that corrupt elements received sacks of money.

On his part, Kishapu MP Suleiman Nchambi blamed the government for having delayed to bring the matter to the House for debate.

“The money we were losing in running this dispute is a lot of money that can go into building secondary schools or hospitals,” he said

Sikonge MP Said Nkumba (CCM) said cited that James Rugemarila of VIP Engineering and Marketing Ltd ‘gave away’ monies from sell of his IPTL shares to public service officials, some of whom are in government, signified foul play but nonetheless, commended him for paying taxes upon sell of the shares. The MP was also of the view that Prime Minister Mizengo Pinda is innocent in the matter and should not resign but agreed that all government bureaucrats implicated in the saga should face the law.