Stakeholders in the sugar industry have
commended the government’s decision to introduce tax on sugar imported
into the country as raw material, a representative of Tanzania Sugar
Producers Association (TSPA), Mr Hamad Yahaya, told a
news conference at
the weekend.
Finance Minister, Ms Saada Mkuya Salum,
on June 11, this year, announced there will be a charge of 50 per cent
of the CIF value on industrial sugar - imported into the country as raw
material.
He said in a statement that: “It is our
belief that the decision follows widespread concern over smuggling,
cheating and abuse of the facility by various dishonest importers who
dodge tax.
“Improper taxation of imports also
distort the market, where local producers and other players discharge
their fiscal obligation by 100 per cent. We are commending the
government for this decision.”
“It is our hope that the government will
continue to plug all loopholes used in dodging tax including
consignments entering the country as transit cargo but end up in the
domestic market tax free, much to the charging of sugar producers and
thousands of farmers who depend on sugarcane for their livelihood,” he
said.
According to the Tanzania Sugar Board
(TSB) the country currently consumes 590,000 tonnes of sugar annually,
while the four local sugar industries - Tanganyika Plantation Company
(TPC), Kagera, Kilombero and Mtibwa are capable of supplying 291,000
tonnes for the same period leaving a huge gap that is filled by imports.
