Tanzania faces legal action against tax policies – News

Nairobi . Tanzania risks being sued by an international tribunal for its recent investment and tax policies, which the parties to the Bilateral Investment Treaty (ILO) consider to be anti-commercial.

Tanzania is a signatory to the BIT with developed countries through a dispute settlement mechanism that allows them to seek compensation when new regulations or policies threaten their profits.

The treaty does not provide for a regular review of issues that affect profitability. If it is not set to be revised before October 1, 2018, it will be automatically renewed for another 10 years in accordance with Article 14. Observers say that problems will probably come from the Netherlands . Civil society organizations advocate the revision of the BIT between Tanzania and the Netherlands, according to them, do not serve the interests of Tanzania. [19659002] ENDS, a Dutch organization, is badociated with the Institute for Information and Trade Negotiations of Eastern and Southern Africa (Seatini), HakiMadini of Tanzania and Diakonia in The lobbies want a reformulation of the treaty to make explicit that the promotion and protection of investments are pursued to the extent that they support local development and not at the expense of costs. key national development goals and the public interest such as health, environment, human rights, consumer protection, anti-corruption, consumer rights and

They want the preamble of the treaty to affirm the right of the state to introduce new rules and regulations on investment. "

" It should also include a goal that reflects measurable value. and the visible parameters of sustainable development that the investment is supposed to influence. The objective of the Treaty may be:

"To encourage and increase investment between investors of one State Party in the territory of the other State Party promoting employment, technology and the skills transfer, synergy with local businesses and, ultimately, "The company's definition of investment reduces the risk of attracting opportunistic foreign investments that could target windfall profits and and then move to poverty reduction in the host country in a sustainable way, "reads in a joint badysis of controversial provisions of the treaty.

Such investments normally have a small positive effect on the host economy, as they do not create long-term links with local production sectors.

The proposed definition increases the probability of attracting long-term investments. which is more likely to support the host country's development aspirations by benefiting its citizens. [19659002] Speaking in a panel that unpacked investment models and their implications for developing countries, Burghard Ilge of BothENDS, said that under the current TBI frameworks, companies can sue governments for reasons waves of "unfair treatment."

19659002] Corporations are permitted to bypbad domestic courts and to go directly to private international arbitration tribunals such as the World Bank's International Center for Settlement of Investment Disputes and the United States. international chambers of commerce in Paris. doors closed by a panel of three commercial lawyers.

Tanzania and the Netherlands signed the Agreement on the Encouragement and Reciprocal Protection of Investments, which came into force on April 1, 2004 and is valid for 15 years until April of the year. 39 next year.

Article 14 (2), of the agreement provides that, unless notice of termination or revision by Tanzania or the Netherlands at least six months before the date of expiry of its validity, the Agreement will be tacitly renewed tacitly for ten years.

"According to this provision, the notification by both parties, Tanzania or the Netherlands, must be made before October 1, 2018, after which the agreement will be automatically renewed.

The renegotiation of the Agreement will allow the Tanzanian government and its people to redefine "the campaign against the BIT

The joint resolution concluded that the BIT between Dar es Salaam and Amsterdam have been overtaken by events and may affect Tanzania if it is not called upon to reconsider.

million. Ilge gave an example from Burkina Faso, whereENDS and other local NGOs have advocated to the government to review these BITs before The NGO consortium also called for harmonization of negotiations with investors coming from in East Africa for a regional benefit.

The EAC Partner States are currently preparing an EAC investment model that emphasizes the need to have a common ground for negotiations with investors.

Jane Nalunga, director of Seatini Uganda, called on EAC member states not to compete by encouraging investors to compete with their peers. ", She said, adding that people should be at the center of investments and have a voice to meet their expectations and priorities," apart from the creation of John-Bosco Kanyangoga, a consultant in trade and investment based in Kigali, warned that the lack of an appropriate negotiating framework led governments to settle for fewer transactions, neglecting the needs of people and important issues. Tanzania has signed 18 BITs for investment protection, including 11 with Canada, China, Denmark, the United Kingdom, the Netherlands, Finland, Germany, Italy, Mauritius , Sweden and Switzerland in force.