Tanzania: Govt pays out 15bn/- as VAT refunds

LUDOVICK KAZOKA in Dodoma

Deputy Permanent Secretary in the Ministry of Finance and Planning, Dr Khatibu Kazungu

THE government has paid some 15bn/- in tax refund last month, in a new drive to settle all Value Added Tax claims.

However, the treasury said those paid were genuine claimers and a verification exercise was being carried out to establish the authenticity of claims. The Deputy Permanent Secretary in the Ministry of Finance and Planning, Dr Khatibu Kazungu, said yesterday that they have gradually begun refunding VAT claimers.

“In November, for instance, the government had repaid 15bn/- to taxpayers with genuine claims over VAT,” said Dr Kazungu while responding to questions from members of business community at a meeting on Private Sector Participation in 2018/19 Fiscal Policy Preparation.

Last month, Shanta Gold, mining gold at Luipa in Chunya, announced receiving a VAT refund of 3.4 million US dollars (7.48bn/- ). The amount paid was made up of a 1.9 million US dollars (4.18bn/-) offset against corporate taxes payable in 2016 and 2017 and a cash payment to the company of 1.5 million US dollars (3.3bn/-).

On other development, Southern Agricultural Corridor of Tanzania (SAGCOT) Chief Executive Officer, Mr Geoffrey Kirenga, said that agricultural sector will contribute significantly towards industrialisation. He urged the government to chip in addressing challenge of packaging materials for agricultural products, pointing out that the availability of packaging materials would add value for the products.

Chairman of Tanzania Sunflower Oil Processor Association (TASUPA), Mr Ringo Iringo, noted that the government should consider waiving VAT in sunflower oil sector to promote its production in the country. “This will result into balance in market between imported oil which is too cheap and oil produced in the county,” he said.

The Minister for Finance and Planning, Dr Philip Mpango said when opening the meeting that the government would work on issues raised by business community towards preparing 2018/19 Fiscal Policy. He said he was optimistic that the recommendations from members of the business community would unleash private sector vitality and competitiveness without affecting the business duties undertaken by the government.

Dr Mpango pointed out the recommendations will help to improve the taxation system in order to expedite industries construction in the country.