THE UNITED REPUBLIC OF TANZANIA LAWS, INSTITUTIONS AND THE CHALLENGES

THE UNITED REPUBLIC OF TANZANIA

LAWS, INSTITUTIONS AND THE CHALLENGES OF GOOD GEVERNANCE IN TANZANIA

By Eng. PAUL M. MASANJACEO – TMAA, TANZANIA

Presented at: The International Conference on Public-Private Partnershipsfor Sustainable Development: Toward a Framework for Resource Extraction Industries.

Montreal, Canada 29th – 31st March, 2012

OUTLINEOUTLINE

MINERAL OCCURRENCE IN TANZANIA

MINERAL SECTOR OVERVIEWMINERAL SECTOR OVERVIEW

North Mara

Geita

Bulyanhulu

Buzwagi

Golden Pride

Tulawaka

Shanta Chunya

MINING PERFORMANCE (1997 Vs 2010)

MINERAL SECTOR OVERVIEW (cont’d)MINERAL SECTOR OVERVIEW (cont’d)

1997 2010

Mineral exports (USD million) 26.66 1,508.71

Sector growth (at 2001 prices) 7.7% 10.7%

Employment in LSM - Direct - Indirect

1,70035,000

13,000260,000

Government revenue from LSM (USD million) 2 78Contribution to the GDP (at 2001 prices) 1.4% 2.7%

Foreign Direct Investment (USD billion) 1.3 > 2.5Small Scale Miners < 20,000 > 600,000

APPLICABLE POLICIES AND LAWS TO THE MINERAL SECTORAPPLICABLE POLICIES AND LAWS TO THE MINERAL SECTOR

Policy/ Legislation Responsible Ministry or Institution

The Mineral Policy of 2009 Ministry of Energy and Minerals

The National Land Policy of 1996 Ministry of Land and Human Settlement

The National Forest Policy of 1996 Ministry of Natural Resources and Tourism

The National Water Policy of 2002 Ministry of Water and Irrigation

The Sustainable Industrial Development Policy of 1996

Ministry of Industry and Trade

The Mining Act of 2010 Ministry of Energy and Minerals

The Tanzania Investment Act of 1997

Prime Minister’s Office, Planning Commission & Ministry of Finance and Economic Affairs.

The Environmental Management Act of 2004

Vice President’s Office, Division of Environment

Applicable Policies and Laws to the Mineral SectorApplicable Policies and Laws to the Mineral Sector


The Income Tax Act of 2004 Tanzania Revenue Authority

The Finance Act of 2005 Ministry of Finance and Economic Affairs.

The Water Utilization and Control Act of 1974

Ministry of Water and Irrigation.

The Forest Act of 2002 Ministry of Natural Resources and Tourism.

The Occupational Health and Safety Act of 2003

Ministry of Labour, Employment and Youth Development & Ministry of Health and Social Welfare

The Employment and Labour Relations Act of 2004

Ministry of Labour, Employment and Youth Development.

The National Economic Empowerment Act of 2004

Prime Minister’s Office, Planning Commission.

The Land Act of 1999 Ministry of Land and Human Settlement

Applicable Policies and Laws to the Mineral SectorApplicable Policies and Laws to the Mineral Sector


The Village Land Act of 1999 Ministry of Land and Human Settlement

The Land Use Planning Commissions Act of 1984

Ministry of Land and Human Settlement

The Wildlife Conservation Act of 1974

Ministry of Natural Resources and Tourism

The Explosives Act of 1963 Ministry of Energy and Minerals

The Fisheries Act of 1974 Ministry of Livestock and Fisheries Development

The Beekeeping Act of 2002 Ministry of Livestock and Fisheries Development

Salient Features of the Mining Act, 2010Salient Features of the Mining Act, 2010

Mineral Rights for small scale operations (involving initial Capex of less than USD 100,000) reserved exclusively to Tanzanian Citizens and Corporate Bodies under the exclusive control of Tanzania Citizens.

Licenses to mine gemstones to be granted to Tanzanians, except for cases where skills, technology or huge capital is required to develop the ore body. However, participation of a foreign investor would have to be below 50%.

Standard Mineral Development Agreement (MDA), only for projects with initial Capex exceeding USD 100 million.

MDAs to be reviewed every 5 years.

Government may negotiate with holder of Mineral Right to acquire free-carried interest and state participation in mining depending on the type of minerals and the level of investment.


Royalty is now charged on the gross value of minerals, rather than net back value as before. Royalty rates are as follows: precious and base metals - 4%; diamonds and gemstones 5%; Uranium 5%; other minerals 3%.

Prospecting Licenses (PLs) is granted for a period of 3 years; at each renewal at least 50% of the area is relinquished.

Expired or relinquished areas under PLs to be held by the licensing authority for 4 months to determine whether the area is suitable for small scale mining.

Duration of Special Mining Licence is capped at the expected life of the ore body indicated in the feasibility study or such period as the applicant may request, or whichever period is shorter.


Mining entities are obliged to give preference to local procurement of goods and services .

Mining entities are required to provide for the posting of a rehabilitation bond to finance the costs of rehabilitating and making safe the mining area on termination of mining operations.

Requirement for implementation of plan on compensation, relocation and resettlement of the owners or occupiers of the land before commencement of mining operations.

Requirement for listing with a domestic stock exchange.

MINING REGULATIONSMINING REGULATIONS

Six Mining Regulations have been established under the Mining Act of 2010 to regulate mining activities in the country. These are:

1.The Mining (Environmental Protection for Small Scale Mining) Regulations, 2010

2.The Mining (Mineral Beneficiation) Regulations, 2010

3.The Mining (Mineral Rights) Regulations, 2010

4.The Mining (Mineral Trading) Regulations, 2010

5.The Mining (Radioactive Minerals) Regulations, 2010

6.The Mining (Safety Occupational Health and Environmental Protection) Regulations, 2010

NATIONAL LEVEL REGULATORY INSTITUTIONSNATIONAL LEVEL REGULATORY INSTITUTIONS

Institution Role and Responsibility

Ministry of Energy and Minerals

Issuing mineral rights

Enforcing laws and regulations for mining and protection of environment, environmental monitoring and auditing

Mining conflict resolutions

Coordinating CSR initiatives

Vice President’s Office(Division of Environment)

Responsible for the development of policy options and coordination of broad-based environment programmes and projects.

Facilitating meaningful involvement of civil society in environment activities.

Conducting environment research

Responsible for environment planning, monitoring and coordination at a national and international level.


Institution Role and ResponsibilityMinistry of Water and Irrigation

Enforce laws and regulations for water quality.

Issuance and regulation of water rights.

Enforce water and effluent discharge laws as per standards.

Ministry of Lands and Human Settlements Development

Issuing of Right of Occupancy.

Land use planning.

Land valuation and compensation.

Ministry of Natural Resources and Tourism

Enforcement of laws and regulations for forestry resources management.

Issuance of permits to conduct mining operations in forest reserved areas.


Institution Role and ResponsibilityNational Environment Management Council (NEMC)

Conducting environment education and public awareness.

Serves as a think-tank for the Government on environment matters.

Performing environmental audits in all sectors to ensure compliance with environmental laws and regulations.

Enforcing pollution control measures.

Tanzania Revenue Authority (TRA)

Administering tax laws for the purpose of assessing, collecting and accounting for all revenue to which those laws apply.

Monitoring, overseeing and coordinating business activities and ensure fair, efficient and effective administration of revenue laws.


Institution Role and ResponsibilityTanzania Revenue Authority (TRA) (cont..)

Monitoring and ensuring collection of fees, levies, charges or any other tax collected by any ministries, departments or divisions of the government as revenue for the government.

Tanzania Minerals Audit Agency (TMAA)

Mandated to monitor and audit financial and tax records of mining entities, and ensuring sound environmental management at all mining areas for large, medium and small scale miners.

Tanzania Extractive Industries Transparency Initiative (TEITI)

Tanzania joined EITI on 16th February, 2009. TEITI seeks to create the missing transparency and accountability in revenue flows from the extractive industry.

NATIONAL LEVEL REGULATORY INSTITUTIONS & NGOsNATIONAL LEVEL REGULATORY INSTITUTIONS & NGOs

Institution Role and ResponsibilityTanzania Extractive Industries Transparency Initiative (TEITI)

TEITI produced its first report on 11th February, 2011. Major finding in that first report was difference of TZS 46.5 billion between revenues confirmed to have been received by the Government from mining entities and payments reported by mining entities. This figure is equivalent to USD 36 million.

Further reconciliation done recently by a consultant (BDO) on revenue received by the Government from mining entities cut down the un-reconciled figure to USD 376,000 only.

NGOs National watchdog – initiating dialogue on national economic, social and environment concern’s among stakeholders.

ACTORS IN THE REGULATED AREAS ACTORS IN THE REGULATED AREAS

Area Main Actors (Government Ministries and Institutions)

Economic Ministry of Energy and Minerals;

Ministry of Finance and Economic Affairs;

Tanzania Revenue Authority;

Bank of Tanzania;

Tanzania Minerals Audit Agency;

Tanzania Investment Center; and

Planning Commission.

Environment Vice President’s Office – Division of Environment;

Ministry of Energy and Minerals;

National Environment Management Council; and

Tanzania Minerals Audit Agency.

Area Main Actors (Government Ministries and Institutions)

Social Ministry of Energy and Minerals;

Ministry of Community Development, Gender and Children; and

Ministry of Health and Social Welfare.

ACTORS IN THE REGULATED AREAS (Cont..) ACTORS IN THE REGULATED AREAS (Cont..)

GOOD GOVERNANCEGOOD GOVERNANCE

Characteristics of good governance are:Rule of law;

Participation;

Transparency;

Responsiveness;

Consensus-oriented;

Accountability;

Equity and inclusiveness; and

Effectiveness and efficiency.


2011 Assessment of African Governance by Mo Ibrahim Foundation Tanzania was ranked 13th out of 53 countries for governance quality.

Tanzania was ranked 2nd out of 12 countries in East Africa.

Category Tanzania Score Africa Average Score

Rule of Law 55% 48%

Accountability 47% 43%

Human Rights 60% 45%

Participation 58% 42%

Tanzania was ranked 100th out of 180 countries surveyed in 2011 as per Global Corruption Index. Tanzania scored 3, where 0 is perceived as highly corrupt and 10 as very clean.


2012 Annual ranking of countries in terms of political risks for mining investment – by Behre Dolbear

Tanzania has been ranked 4th in Africa after scoring 32 points out of 70.

Botswana has been ranked 1st after scoring 37 points. The other highly ranked African countries are Ghana (36 points) and Namibia (33 points).

Zambia scored 26 points; and South Africa scored 25 points.

Australia is the highly ranked country in the world with 57 points.

Criteria used are: economic system, political system, degree of social issues affecting mining, delays in receiving permits, degree of corruption, stability of the country’s currency, and competitiveness of the nation’s tax policy.

MINING FOR SUSTAINABLE DEVELOPMENT IN TANZANIAMINING FOR SUSTAINABLE DEVELOPMENT IN TANZANIA

Sustainable Development (SD) is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (World Commission on Environment and Development – the Brundtland Commission).

Mining in Tanzania, like in any other country, faces the most difficult sustainability challenges than other industries. In order for mining projects to secure social licence to operate, the industry has to respond to such challenges by engaging its many different stakeholders.

Sustainable development challenges in mining can be grouped into 3 pillars – Economic, Environment and Social.


SD Pillar Issues Key Stakeholders

Economic Distribution of revenues; Contribution of mining to GDP; Employment; Procurement; Value addition

Government, Local Authorities, Local Communities, Employees, Trade Unions, Contractors, Customers, Shareholders, Insurers, Media, Suppliers, Creditors, NGOs.

Environment Land use, land management, rehabilitation, solid waste management, water management (effluents and leachates), air pollution, global warming and other environmental impacts of mining.

Government, Local Authorities, Local Communities, Employees, Shareholders, Insurers, Media, Creditors, NGOs.

Social Employment opportunities, education and skills development, human rights, wealth distribution, corruption, OHS matters.

Government, Local Authorities, Local Communities, Employees, Trade Unions, Insurers, Media, NGOs.


Sustainable Development in mining as per the 3 pillars (economic, environment, social) calls for:

Win for the Investor;

Win for the Government; and

Win for the Community

(WIN – WIN - WIN)

PUBLIC PRIVATE PARTNERSHIP (PPP)PUBLIC PRIVATE PARTNERSHIP (PPP)

In Tanzania, PPP is governed by the Public-Private Partnership Act, No 18 of 2010 and its Regulations made under Section 28 of the Act.

The Act aims at promoting private sector participation in the provision of public services through public-private partnership projects in terms of investment capital, managerial skills and technology.

Table 1: Some PPP Projects in the Extractive Industries in Tanzania

Company Project FocusDeBeers Ltd (Initiated in 2006)

Mwadui Community Diamond Partnership (MCDP) with the following partners: DeBeers, Williamson Diamond Limited, and the United Republic of Tanzania represented at national, regional, district and local levels.

Its overarching goal is to alleviate poverty and improve the health and wellbeing of small scale informal diamond mining communities around the Williamson mine at Mwadui. The project focuses on capacity building and technical support to the small scale miners in the area; facilitating mobile community banking at local level; addressing HIV/AIDS and malaria prevention and management.

Company Project Focus

Gulf Resources Ltd (Initiated in 2008)

MSP Project Determining potential of a public-private partnership for the development, modernization and expansion of the Mtwara Sea Port, regulating the associated Export Processing Zones and Free Port facility (“the MSP Project”). The MSP Project forms part of the major Mtwara Infrastructure Corridor Development Initiative.

African Barrick Gold (ABG)

Various PPP Projects

Barrick injected USD 28 million in 2007 into the national rural electrification programme in the form of public-private partnership. The project was aimed at extending electric poles all the way to the remote Tarime District, Mara Region, eventually integrating the area into the national power grid. The company collaborated with the Government through Tanzania Electric Supply Company (TANESCO).

Barrick invested $500,000 in a partnership with TANESCO to bring electricity to the community of Kakola and surrounding areas near Bulyanhulu Gold Mine.


Company Project Focus

African Barrick Gold (ABG)


Barrick established the Lake Zone Health Initiative, a public-private partnership project aimed at combating HIV/AIDS, malaria and tuberculosis in the Lake Zone. Tanzania’s Lake Zone is home to nine million residents.

Barrick partnered with NGO Bridge2AID and the Tanzanian Government to increase access to emergency dentistry in rural areas in the country.

Barrick launched Maendeleo Fund in 2011 which will have a USD 10 million annual budget to fund projects that improve the quality of life in communities where ABG operates. Investments under this project will focus on community development, health, education, environment, water projects, skills and training programs, and support to NGOs.


Company Project FocusAfrican Barrick Gold (ABG)


ABG signed an agreement early this year with the seven villages surrounding the North Mara Gold Mine to invest USD 8.5 million over the next three years in improving the quality of life in the communities around. The money will be spent on provision of clean water, development of school infrastructure, upgrading of a local health centre to a hospital, rehabilitating village offices, improving road infrastructure, extension of overhead electricity lines and collection of garbage. The villages to benefit from this project are Nyang’oto, Kewanja, Matongo, Kerende, Genkuru, Nyamwaga and Nyakunguru.

Anglo-Gold Ashanti at GGM

Kilimanjaro Challenge Project and other PPP projects

Project initiated by the mining company in 2002 aimed at fighting HIV/AIDS in the country. The company has been organizing annual climbs of Mt Kilimanjaro to raise money for HIV/AIDS initiatives.

The company spent over USD 10 million from year 2000 to 2011 on CSR projects.


Company Project FocusTanzaniteOne Ltd

Merelani Controlled Area Project

To control smuggling of Tanzanite from the area and create value addition within the mining area.

Naisinyai Secondary School Construction Project

To enhance literacy level and participation in MKUKUTA strategy.

Small Mine Assistance Program

To provide geological, mining, survey, safety, logistical, operational and other guidance and support to small scale mines with the aim of building and developing the entire Tanzanite mining industry and sound stakeholder relations.

Free Carried Government Interest

Requirement as per Section 10 of the Mining Act, 2010

The level of free-carried interest and state participation in any mining operations under Special Mining Licence is negotiated upon between the Government and a mineral right holder depending on the type of minerals and the level of investment.


CHALLENGESCHALLENGES

Challenges faced in bringing in SD between extractive industries and communities they work in:1.Community dissatisfaction and expectation gap:

Mining activities are normally carried out in remote areas where there is poor infrastructure and services. This pushes hard the Government and respective mining companies to improve them.

Each mining company has its own CSR policy. As a result, some communities are dissatisfied with the level of CSR projects undertaken in their areas by mining companies around them in comparison to other within the country. This calls for a common CSR Framework.

Local communities tend to compare revenue generated by mining companies versus the amount spent on CSR projects in their areas. After realizing the gap, they become dissatisfied. This however comes out of ignorance of what the mining companies spend in order to generate that revenue, which is capital investment, operating expenses, taxes and royalties paid to the Government and interest on loans.


Some communities are unhappy with most of the CSR projects implemented in their areas in that they are not in their priority list. They normally argue that most of such projects are implemented for the mining company’s own benefits. For example, repairing roads leading to the mine site, or drawing water pipes that they themselves need.

Community development projects undertaken by mining companies are mostly on the high side during exploration and development stages of the mine, but decline

2. Inadequate linkage between the mineral sector with other sectors of the economy (finance services, transport, communication, energy, water, engineering, etc.).

3. Weak partnership between Government institutions with NGOs.

4. Inadequate coordination among Government institutions involved in the administration of the mineral sector.

5. Inadequate human and financial resources on the side of the Government and/or local communities to negotiate and oversee implementation of PPP projects by mining companies.


6. Inadequate capacity of the Government to evaluate, monitor and audit fiscal and financial flows within the mineral sector.

7. Realizing good governance, transparency and accountability in the sector taking into consideration ideas championed in the IGF-MPF and the Africa Mining Vision.

8. Having in place effective policies for revenue management, benefits sharing, and PPP for infrastructure development.

9. Realizing economic growth at a national level through investment injection in mining, local employment, Government revenue generation (taxes, royalties, fees, etc.) and foreign exchange earnings.

10. Realizing technology transfer and infrastructure development.

11. Managing artisanal and small scale mining activities.

12. Streamlining and harmonizing policies and laws to ensure prosperity during and after life of the mine.

13. Changing mindsets of all players in the mineral sector in order to achieve sustainable development.

CONCLUSION AND RECOMMENDATIONSCONCLUSION AND RECOMMENDATIONS

Considering the long list and degree of challenges faced in bringing in SD in the context of mining in Tanzania, there are no exclusive actions and recommendations to address them. However, the following actions are recommended:

1.Keep on enhancing the capacity of the Government to regularly evaluate, monitor and audit mining operations to ensure SD of mining.

2.Keep fine tuning policies, laws, regulations and strategies to ensure a win-win-win situation between the investor, Government and local communities surrounding the mines.

3.Optimize exploitation and utilization of the country’s mineral resources.

4.Broaden the geo-scientific knowledge base to boost discovery of mineable deposits in the country.

5.Enhance the institution role of the Government and local communities in developing and negotiating PPP agreements with the mining companies, and oversee its implementations to achieve the intended goals. This will ensure realization of a win-win public-private partnership which in turn will create security, stability and predictability in mining business.

6. Mining companies should accept and engage fully in the sustainability agenda. They should strive to have the right technology, right philosophy, right CSR policies and the right management systems.

7. All stakeholders to work towards achieving good governance, transparency and accountability in the administration and management of the sector.

8. Developing a tool for performance measurement of CSR initiatives in the extractive industries: Presidential award on Corporate Social Responsibilities and Empowerment (CSRE) was launched by the President, H.E. Jakaya Mrisho Kikwete on 28th February, 2012 to stimulate implementation of sound CSR initiatives in communities surrounding the extractive industries projects and ensure sustainable development.The Presidential award on CSRE will be given annually to the best responsible companies in observing CSRE in undertaking its business.

There are 7 areas of the award, which are Health, Education, Water, Infrastructure Development, Local Procurement, Local Employment and Local Empowerment.

Participants in the award include large scale mining companies; gas extraction companies; minerals, oil and gas exploration companies; medium scale mining companies; and small scale miners.

CONCLUSION AND RECOMMENDATIONSCONCLUSION AND RECOMMENDATIONS

Figure: Historical Gold Export Quantity versus Value (2001 – 2011)

Figure: Royalty Paid by Major Gold Mines (2001 - 2011)

Table 1: Historical Taxes Paid by Large Scale Mining Entities (1999 – 2011, Billion TZS)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TOTAL

PAYE 1.7 7.3 12.4 16.6 18.5 11.5 17.4 11.8 22.3 44.0 52.6 49.9 90.3 356.3

SDL 0.6 1.6 1.9 2.6 2.4 3.4 11.8 2.5 3.8 7.5 9.8 11.3 19.5 78.7

WHT 0.5 8.8 8.3 8.4 7.9 7.3 10.0 3.3 3.3 5.6 7.9 13.1 12.3 96.7

VAT - - - - - - - 1.3 3.2 4.0 4.7 4.7 25.8 43.7

Stamp Duty

0.0 0.2 0.2 0.3 0.0 0.1 0.2 0.1 0.0 0.0 0.0 0.2 0.004 1.3

Import Duty

0.3 0.6 0.4 2.2 1.5 3.3 6.4 - - - - - - 14.7

Excise Duty

- - - - - - - 0.1 0.1 2.1 2.1 - - 4.4

Corporate Tax

- - - - 1.7 3.3 3.8 3.1 1.6 4.0 4.5 21.3 50.9 94.2

TOTAL 3.1 18.5 23.2 30.1 31.9 28.8 49.6 22.2 34.2 67.3 81.6 100.5 198.8 690.0

Table 2: Procurement of Goods and Services by Large Scale Miners (2001 – 2011, Million TZS)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TOTAL

Foreign 75.47 111.90 215.73 102.73 336.08 217.24 467.88 649.78 619.90 546.17 991.29 4,334.17

Local 109.51 125.45 186.15 130.48 237.97 349.60 547.82 554.93 551.77 337.92 379.57 3,511.17

TOTAL 184.98 237.35 401.88 233.21 574.05 566.84 1,015.7 1,204.71 1,171.67 884.09 1,370.86 7,845.34

Table 3: Status of Employment in the Major Gold Mines (Number of Locals versus Expatriates)

YearType of Employee

BGM BZGM GGM GPM NMGM TGM TTM WDLGrandTotal

2005

Expatriates - - 108 16 - - 21 12 157

Locals - - 1,801 276 - - 612 671 3,360

Total - - 1,909 292 - - 633 683 3,517

2006

Expatriates 177 - 116 15 - 51 24 12 395

Locals 2,042 - 1,985 282 - 248 694 725 5,975

Total 2,219 - 2,101 297 - 299 718 737 6,371

2007

Expatriates 180 - 114 15 83 32 25 11 460

Locals 1,787 - 2,338 302 928 283 644 717 6,999

Total 1,967 - 2,452 317 1,011 315 669 728 7,459

2008

Expatriates 140 58 129 34 129 41 26 10 567

Locals 1,687 569 1,964 225 978 325 714 677 7,139

Total 1,827 627 2,093 259 1,107 366 740 687 7,706

2009

Expatriates 185 49 121 27 127 41 29 4 583

Locals 2,012 671 1,814 238 621 338 613 610 6,917

Total 2,197 720 1,935 265 748 379 642 614 7,500

2010

Expatriates 181 105 86 34 138 65 33 8 650

Local 2,266 746 1,792 266 703 356 648 584 7,361

Total 2,447 851 1,878 300 841 421 681 592 8,011

2011

Expatriates 195 132 82 37 157 75 32 8 718

Local 2,430 875 1,601 297 876 473 643 558 7,753

Total 2,625 1,007 1,683 334 1,033 548 675 566 8,471

Table 4: (Revenue Vs Expenditure of 5 LSM: 2005-2009) INCOME STATEMENT/ PROFIT & LOSS (Figures in USD '000s)

Average Total 2009 2008 2007 2006 2005

Gold sales/ Revenue 779,666 3,898,332 1,038,410 849,428 750,237 696,072 564,185

Other operating income 21,580 107,901 19,192 19,766 34,031 20,992 13,920

Revenue for the Year 801,247 4,006,233 1,057,602 869,194 784,268 717,064 578,105

Operating costs (658,887) (3,294,433) (871,998) (749,866) (611,957) (504,868) (555,744)

Operating costs/Revenue 82% 82% 82% 86% 78% 70% 96%

Financing costs (47,215) (236,077) (20,942) (44,019) (67,765) (61,985) (41,367)

Financing costs/Revenue 6% 6% 0% 1% 9% 15% 12%

Government Take:

Royalty 25,379 126,896 32,828 27,323 24,335 23,402 19,008

PAYE 21,221 106,107 37,556 32,689 16,262 9,058 10,542

SDL 4,951 24,754 7,024 5,571 2,739 1,835 7,585

WHT 3,964 19,818 5,708 3,926 1,940 2,209 6,035

Corporate Tax 1,343 6,715 3,188 2,368 84 1,075 -

Others 3,183 15,916 4,420 4,050 2,356 990 4,100

Total Government Take 60,041 300,206 90,724 75,927 47,716 38,569 47,270

Government take/Revenue

7% 7% 9% 9% 6% 5% 8%

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THE UNITED REPUBLIC OF TANZANIA LAWS, INSTITUTIONS AND THE CHALLENGES