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FINANCE ACT, 2003.

ARRANGEMENT OF SECTIONS.

   Section

PART I
PRELIMINARY.

   1.   Short title.

PART II
DRAWBACK OF DUTY AND IMPORT COMMISSION.

   2.   [Repealed]

PART III
AMENDMENT TO THE FINANCE ACT (NO. 2), 1996 CAP. 185.

   3.   Amendment of section 1 of the Finance Act (No. 2), 1996 Cap. 185.

PART IV
AMENDMENTS TO THE FINANCE (NO. 2) ACT 2002.

   4.   Substitution of First Schedule to the Finance (No. 2) Act 2002.

   5.   Amendment of Second Schedule to the Finance (No. 2) Act 2002.

   6.   Repeal of sections 5, 6, 7 and 8 of the Finance (No. 2) Act 2002.

PART V
TAXES REMITTED UNDER THE EXCISE TARIFF ACT CAP. 338 AND THE CUSTOMS TARIFF ACT, CAP. 337.

   7.-10.   [Repealed]

      First Schedule   Manufacturers entitled to claim duty drawback in accordance with section 2 of the Act.

      Second Schedule   [Repealed].

      Third Schedule

      Fourth Schedule   Amendments to the Third Schedule to the Finance (No. 2) Act, 2002.

FINANCE ACT, 2003.

Commencement: 1 July 2003.

   An Act to provide for the alteration of certain taxes and duties, to amend certain written laws relating to those taxes and duties, and for other related purposes.

PART I
PRELIMINARY.

1.   Short title.

   This Act may be cited as the Finance Act, 2003.

PART II
DRAWBACK OF DUTY AND IMPORT COMMISSION.

2...

PART III
AMENDMENT TO THE FINANCE ACT (NO. 2), 1996 CAP. 185.

3.   Amendment of section 1 of the Finance Act (No. 2), 1996 Cap. 185.

   The Finance Act (No. 2) 1996 is amended in section 1 by substituting for subsection (2), the following subsection—

   "(2) The import commission charged under subsection (1) shall not apply to—

   (a)   plant and machinery imported free of duty;

   (b)   scholastic materials and pharmaceutical products which are exempt or zero-rated for purposes of value added tax;

   (c)   instruments and appliances used in medical, surgical, dental or veterinary services or laboratories imported free of duty;

   (d)   raw materials;

   (e)   agricultural and horticultural inputs imported free of import duty;

   (f)   goods subject to conditional exemptions specified in Part II of the Second Schedule to the Finance (No. 2) Act 2002; and

   (g)   imports by Government."

PART IV
AMENDMENTS TO THE FINANCE (NO. 2) ACT 2002.

4.   Substitution of First Schedule to the Finance (No. 2) Act 2002.

   For the First Schedule to the Finance (No. 2) Act, 2002, there is substituted the provisions of the Second Schedule to this Act.

5.   Amendment of Second Schedule to the Finance (No. 2) Act 2002.

   The Second Schedule to the Finance (No. 2) Act 2002 is amended in the manner specified in the Third Schedule to this Act.

6.   Repeal of sections 5, 6, 7 and 8 of the Finance (No. 2) Act 2002.

   Sections 5, 6, 7 and 8 of the Finance (No. 2) Act 2002 are repealed.

PART V
TAXES REMITTED UNDER THE EXCISE TARIFF ACT CAP. 338 AND THE CUSTOMS TARIFF ACT, CAP. 337.

7.-10   [Repealed]

First Schedule.

s. 2.

Manufacturers entitled to claim duty drawback in accordance with section 2 of the Act.

   Manufacturers of soft drinks, juices, beer, bread, sweets and biscuits.

Second Schedule.

[Repealed].

Third Schedule.

s. 5.

PART I
AMENDMENTS TO PART I OF THE SECOND SCHEDULE, TO THE FINANCE (NO. 2) ACT, 2002.

2402.10.10

Up to 70mm long

kg

15%

6%

130% or Shs. 15,000 per 1,000 sticks whichever is higher

17%

2402.10.90

More than 70mm long

kg

15%

6%

130% or Shs. 25,000 per 1,000 sticks whichever is higher

17%

2402.20.10

Up to 70mm long

kg

15%

6%

130% or Shs. 15,000 per 1,000 sticks whichever is higher

17%

2402.20.90

More than 70mm long

kg

15%

6%

130% or Shs. 25,000 per 1,000 sticks whichever is higher

17%

2402.90.10

Up to 70mm long

kg

15%

6%

130% or Shs. 15,000 per 1,000 sticks whichever is higher

17%

2402.90.90

More than 70mm long

kg

15%

6%

130% or Shs. 25,000 per 1,000 sticks whichever is higher

17%

2844.20.00

Uranium enriched in U 235 and its compounds; plutonium and its compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing uranium enriched in U 235, plutonium or compounds of these products

kg

0%

0%

17%

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H. S. Code

Description

Unit of Qty

Import Duty

COMESA Duty

Excise Duty

VAT

0601.10.00

Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant

U

0%

0%

17%

0601.20.00

Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, in growth or in flower; chicory plants and roots

U

0%

0%

17%

0901.11.00

Not decaffeinated

kg

7%

4%

17%

1003.00.00

Barley

kg

0%

0%

Ex

1301.20.00

Gum Arabic

kg

0%

0%

17%

1301.90.00

Other

kg

0%

0%

17%

1302.20.00

Pectic substances, pectinates and pectates

kg

0%

0%

17%

1511.10.00

Crude oil

kg

0%

0%

17%

2101.11.00

Extracts, essences and concentrates

kg

0%

0%

17%

2202.10.00

Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured:

L

15%

6%

13%

17%

2202.90.00

Other

L

15%

6%

13%

17%

Unmanufactured tobacco; tobacco refuse

2401.10.00

Tobacco, not stemmed/stripped

kg

15%

6%

10%

17%

2401.20.00

Tobacco, partly or wholly stemmed/stripped

kg

15%

6%

10%

17%

2401.30.00

Tobacco refuse

kg

15%

6%

10%

17%

Cigars, cheroots and cigarillos, containing tobacco

Cigarettes containing tobacco

Other

Other manufactured tobacco and manufactured tobacco substitutes; "homogenized" or "reconstituted" tobacco; tobacco extracts and essences

2403.10.00

Smoking tobacco, whether or not containing tobacco substitutes in any proportion

kg

15%

6%

130%

17%

2403.91.00

"Homogenised" or "reconstituted" tobacco

kg

15%

6%

130%

17%

2403.99.00

Other

kg

15%

6%

130%

17%

2505.10.00

Silica sands and quartz sands

kg

7%

4%

17%

2505.90.00

Other

kg

0%

0%

17%

2816.40.00

Oxides, hydroxides and peroxides, of strontium or barium

kg

0%

0%

17%

2818.10.00

Artificial corundum, whether or not chemically defined

kg

0%

0%

17%

2818.20.00

Aluminium oxide, other than artificial corundum

kg

0%

0%

17%

2819.10.00

Chromium trioxide

kg

0%

0%

17%

2819.90.00

Other

kg

0%

0%

17%

2820.10.00

Manganese dioxide

kg

0%

0%

17%

2821.10.00

Iron oxides and hydroxides

kg

0%

0%

17%

2821.20.00

Earth colours

kg

0%

0%

17%

2822.00.00

Cobalt oxides and hydroxides; commercial cobalt oxides

kg

0%

0%

17%

2824.10.00

Lead monoxide (litharge, massicot)

kg

0%

0%

17%

2824.20.00

Red lead and orange lead

kg

0%

0%

17%

2824.90.00

Other

kg

0%

0%

17%

2825.10.00

Hydrazine and hydroxylamine and their inorganic salts

kg

0%

0%

17%

2825.20.00

Lithium oxide and hydroxide

kg

0%

0%

17%

2825.30.00

Vanadium oxides and hydroxides

kg

0%

0%

17%

2825.40.00

Nickel oxides and hydroxides

kg

0%

0%

17%

2825.50.00

Copper oxides and hydroxides

kg

0%

0%

17%

2825.60.00

Germanium oxides and zirconium dioxide

kg

0%

0%

17%

2825.70.00

Molybdenum oxides and hydroxides

kg

0%

0%

17%

2825.80.00

Antimony oxides

kg

0%

0%

17%

2825.90.00

Other

kg

0%

0%

17%

2826.11.00

Of ammonium or of sodium

kg

0%

0%

17%

2826.12.00

Of aluminium

kg

0%

0%

17%

2826.20.00

Fluorosilicates of sodium or of potassium

kg

0%

0%

17%

2826.30.00

Sodium hexafluoroaluminate (synthetic cryolite)

kg

0%

0%

17%

2826.90.00

Other

Kg

0%

0%

17%

2827.31.00

Of magnesium

kg

0%

0%

17%

2827.32.00

Of aluminium

kg

0%

0%

17%

2842.90.00

Other

kg

0%

0%

17%

2843.10.00

Colloidal precious metals

kg

0%

0%

17%

2843.21.00

Silver nitrate

kg

0%

0%

17%

2843.29.00

Other

kg

0%

0%

17%

2843.30.00

Gold compounds

kg

0%

0%

17%

2843.90.00

Other compounds; amalgams

kg

0%

0%

17%

2844.10.00

Natural uranium and its compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing natural uranium or natural uranium compounds

kg

0%

0%

17%

2844.30.00

Uranium depleted in U 235 and its compounds; thorium and its compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing uranium depleted in U 235, thorium or compounds of these products

kg

0%

0%

17%

2844.40.00

Radioactive elements and isotopes and compounds other than those of subheading 2844.10, 2844.20 or 2844.30; alloys, dispersions (including cermets), ceramic products and mixtures containing these elements, isotopes or compounds; radioactive residues

kg

0%

0%

17%

2844.50.00

Spent (irradiated) fuel elements (cartridges) of nuclear reactors

kg

0%

0%

17%

2845.10.00

Heavy water (deuterium oxide)

kg

0%

0%

17%

2845.90.00

Other

kg

0%

0%

17%

2846.10.00

Cerium compounds

kg

0%

0%

17%

2846.90.00

Other

kg

0%

0%

17%

2848.00.00

Phosphides, whether or not chemically defined, excluding ferrophosphorus

kg

0%

0%

17%

2849.20.00

Of silicon

kg

0%

0%

17%

2850.00.00

Hydrides, nitrides, azides, silicides and borides, whether or not chemically defined, other than compounds which are also carbides of heading 28.49

kg

0%

0%

17%

2851.00.00

Other inorganic compounds (including distilled or conductivity water and water of similar purity); liquid air (whether or not rare gases have been removed); compressed air; amalgams, other than amalgams of precious metals

kg

0%

0%

17%

2901.10.00

Saturated

kg

0%

0%

17%

2901.21.00

Ethylene

kg

0%

0%

17%

2901.22.00

Propene (propylene)

kg

0%

0%

17%

2901.23.00

Butene (butylene) and isomers thereof

kg

0%

0%

17%

2901.24.00

Buta-1,3-diene and isoprene

kg

0%

0%

17%

2902.11.00

Cyclohexane

kg

0%

0%

17%

2902.19.00

Other

kg

0%

0%

17%

2902.20.00

Benzene

kg

0%

0%

17%

2902.42.00

m-Xylene

kg

0%

0%

17%

2902.43.00

p-Xylene

kg

0%

0%

17%

2902.44.00

Mixed xylene isomers

kg

0%

0%

17%

2902.60.00

Ethylbenzene

kg

0%

0%

17%

2902.70.00

Cumene

kg

0%

0%

17%

2903.11.00

Chloromethane (methyl chloride) and chloroethane (ethyl chloride)

kg

0%

0%

17%

2903.13.00

Chloroforme (trichloromethane)

kg

0%

0%

17%

2903.14.00

Carbon tetrachloride

kg

0%

0%

17%

2903.15.00

1,2-Dichloroethane (ethylene dichloride)

kg

0%

0%

17%

2903.19.00

Other

kg

0%

0%

17%

2903.21.00

Vinyl chloride (chloroethylene)

kg

0%

0%

17%

2903.22.00

Trichloroethylene

kg

0%

0%

17%

2903.23.00

Tetrachloroethylene (perchloroethylene)

kg

0%

0%

17%

2903.29.00

Other

kg

0%

0%

17%

2903.30.00

Fluorinated, brominated or iodinated derivatives of acyclic hydrocarbons

kg

0%

0%

17%

2903.41.00

Trichlorofluoromethane

kg

0%

0%

17%

2903.42.00

Dichlorodifluoromethane

kg

0%

0%

17%

2903.43.00

Trichlorotrifluoroethanes

kg

0%

0%

17%

2903.44.00

Dichlorotetrafluoroethanes and chloropentafluoroethane

kg

0%

0%

17%

2903.45.00

Other derivatives perhalogenated only with fluorine and chlorine

kg

0%

0%

17%

2903.46.00

Bromochlorodifluoromethane, bromotrifluoromethane and dibromotetrafluoroethanes

kg

0%

0%

17%

2903.47.00

Other perhalogenated derivatives

kg

0%

0%

17%

2903.49.00

Other

kg

0%

0%

17%

2903.51.00

1,2,3,4,5,6-Hexachlorocyclohexane

kg

0%

0%

17%

2903.59.00

Other

kg

0%

0%

17%

2903.61.00

Chlorobenzene, o-dichlorobenzene and p-dichlorobenzene

kg

0%

0%

17%

2903.62.00

Hexachlorobenzene and DDT (1,1,1-trichloro-2,2-bis (p-chlorophenyl) ethane)

kg

0%

0%

17%

2903.69.00

Other

kg

0%

0%

17%

2904.10.00

Derivatives containing only sulpho groups, their salts and ethyl esters

kg

0%

0%

17%

2904.20.00

Derivatives containing only nitro or only nitroso groups

kg

0%

0%

17%

2904.90.00

Other

kg

0%

0%

17%

2905.11.00

Methanol (methyl alcohol)

L

0%

0%

17%

2905.14.00

Other butanols

L

0%

0%

17%

2905.15.00

Pentanol (amylalcohol) and isomers thereof

L

0%

0%

17%

2905.17.00

Dodecan-1-ol (lauryl alcohol), hexadecan-1-ol (cetyl alcohol) and octadecan-1-ol (stearyl alcohol)

L

0%

0%

17%

2905.19.00

Other

L

0%

0%

17%

2905.22.00

Acyclic terpene alcohols

L

0%

0%

17%

2905.29.00

Other

L

0%

0%

17%

2905.39.00

Other

L

0%

0%

17%

2905.43.00

Mannitol

L

0%

0%

17%

2905.45.00

Glycerol

L

0%

0%

17%

2905.49.00

Other

L

0%

0%

17%

2905.51.00

Ethchlorvynol (INN)

L

0%

0%

17%

2905.59.00

Other

L

0%

0%

17%

2906.11.00

Menthol

L

0%

0%

17%

2906.12.00

Cyclohexanol, methylcyclohexanols and imethylcyclohexanols

L

0%

0%

17%

2906.13.00

Sterols and inositols

L

0%

0%

17%

2906.14.00

Terpineols

L

0%

0%

17%

2906.19.00

Other

L

0%

0%

17%

2906.29.00

Other

L

0%

0%

17%

2907.11.00

Phenol (hydroxybenzene) and its salts

L

0%

0%

17%

2907.12.00

Cresols and their salts

L

0%

0%

17%

2907.13.00

Octylphenol, nonylphenol and their isomers; salts thereof

L

0%

0%

17%

2907.14.00

Xylenols and their salts

L

0%

0%

17%

2907.15.00

Naphthols and their salts

L

0%

0%

17%

2907.19.00

Other

L

0%

0%

17%

2907.21.00

Resorcinol and its salts

L

0%

0%

17%

2907.22.00

Hydroquinone (quinol) and its salts

L

0%

0%

17%

2907.23.00

4,4'-Isopropylidenediphenol (bisphenol A, diphenylolpropane) and its salts

L

0%

0%

17%

2907.29.00

Other

L

0%

0%

17%

2908.20.00

Derivatives containing only sulpho groups, their salts and esters

L

0%

0%

17%

2908.90.00

Other

L

0%

0%

17%

2909.11.00

Diethyl ether

L

0%

0%

17%

2909.19.00

Other

L

0%

0%

17%

2909.20.00

Cyclanic, cyclenic or cycloterpenic ethers and their halogenated, sulphonated, nitrated or nitrosated derivatives

L

0%

0%

17%

2909.30.00

Aromatic ethers and their halogenated, sulphonated, nitrated or nitrosated derivatives

L

0%

0%

17%

2909.41.00

2,2'-Oxydiethanol (diethylene glycol, digol)

L

0%

0%

17%

2909.42.00

Monomethyl ethers of ethylene glycol or of diethylene glycol

L

0%

0%

17%

2909.43.00

Monobutyl ethers of ethylene glycol or of diethylene glycol

L

0%

0%

17%

2909.44.00

Other monoalkylethers of ethylene glycol or of diethylene glycol

L

0%

0%

17%

2909.49.00

Other

L

0%

0%

17%

2909.50.00

Ether-phenols, ether-alcohol-phenols and their halogenated, sulphonated, nitrated or nitrosated derivatives

L

0%

0%

17%

2909.60.00

Alcohol peroxides, ether peroxides, ketone peroxides and their halogenated, sulphonated, nitrated or nitrosated derivatives

L

0%

0%

17%

2910.10.00

Oxirane (ethyleneoxide)

L

0%

0%

17%

2910.20.00

Methyloxirane (propylene oxide)

L

0%

0%

17%

2910.30.00

1-Chloro-2,3-epoxypropane (epichlorohydrin)

L

0%

0%

17%

2910.90.00

Other

L

0%

0%

17%

2911.00.00

Acetals and hemiacetals, whether or not with other oxygen function, and their halogenated, sulphonated, nitrated or nitrosated derivatives.

L

0%

0%

17%

2912.11.00

Methanal (formaldehyde)

kg

0%

0%

17%

2912.12.00

Ethanal (acetaldehyde)

kg

0%

0%

17%

2912.13.00

Butanal (butyraldehyde, normal isomer)

kg

0%

0%

17%

2912.19.00

Other

kg

0%

0%

17%

2912.30.00

Aldehyde-alcohols

kg

0%

0%

17%

2912.41.00

Vanillin (4-hydroxy-3-methoxy-benzaldehyde)

kg

0%

0%

17%

2912.42.00

Ethylvanillin (3-ethoxy-4-hydroxybenzaldehyde)

kg

0%

0%

17%

2912.49.00

Other

kg

0%

0%

17%

2912.50.00

Cyclic polymers of aldehydes

kg

0%

0%

17%

2913.00.00

Halogenated, sulphonated, nitrated or nitrosated derivatives of products of heading 29.12

kg

0%

0%

17%

2914.19.00

Other

kg

0%

0%

17%

2914.21.00

Camphor

kg

0%

0%

17%

2914.22.00

Cyclohexanone and methylcyclohexanones

kg

0%

0%

17%

2914.23.00

Ionones and methylionones

kg

0%

0%

17%

2914.29.00

Other

kg

0%

0%