Parliamentary committee for revised single customs territory

BERNARD LUGONGO in Dodoma

PARLIAMENTARY Standing Committee on infrastructure development has advised the government to revisit introduction of Single Customs Territory on goods transported to DR Congo, saying the move has reduced cargo through the Dar es Salaam port.

The single customs territory between Tanzania and DR Congo which started last year followed a decision of the governments of the two countries to establish single customs cooperation amongst them.
Under this arrangement the two countries have adopted a destination model of clearance of goods where assessment and revenue collection is done at the first point of entry.
But, yesterday when presenting directives to the Tanzania-Zambia Railway Authority (TAZARA), the Committee Deputy Chairman, Mr Selemani Kakoso said the system has caused many businesspeople to abandon the Dar es Salaam port and opt neighbouring ports.
The TAZARA management was summoned by the committee to give report on the performance of the company, which Tanzania and Zambia governments co-operate.
"The system under which Tanzania collects import duty on behalf of the DR Congo has seen Tanzania losing the cargo after businesspeople found it hard to avoid tax here in the country," he said.
He said the situation has led to the TAZARA losing a big chunk of cargo from the port to DR Congo. According to TAZARA's Regional General Manager, Mr Fuad Abdallah, during the 2015/16 fiscal year, the firm targeted to transport 200,000 tonnes of cargo, but managed 128,105 tonnes after missing large part of cargo belonging to DR Congo as Congolese businesspeople opted to use other ports.
However, he said the last year's cargo volume increased as compared to the previous year when the total cargo transported was only 87,860 tonnes.
Over revenues, he said, the TAZARA earned 25bn/- and spent 85bn/- after the two governments injected a subsidy amounting to Sh60bn/-.
This led to the committee members calling for immediate interventions by the two governments to rescue TAZARA from subsidy dependence.
Permanent Secretary in the ministry of Transport, Dr Leonard Chamriho, told the committee that the two governments have already started taking measures, including bringing on board the Chinese government as investor to revive TAZARA.