PRESIDENT John Magufuli has directed government authorities and requested the office of the Speaker of the National Assembly to assess and make amendments on taxes which are a burden to farmers.
Last year, the government reviewed and
nullified at least 84 taxes which were seen unfriendly to cash crops;
coffee and cashew nut growers. In addition, seven other taxes that were
limiting the fisheries sector development were also axed.
“If we have managed to review all such
taxes why not the remaining ones which retard development in the
agriculture sector,” he said in Dodoma this week.
The President said ministry officials
should work along with the National Assembly to complete the task. His
directives followed concerns raised by Dodoma Urban MP Mr Anthony
Mavunde (CCM) that grape farmers in the central region were in a huge
dilemma to secure markets of their produce.
The lawmaker and Deputy Minister in the
Office of the Prime Minister claimed that such taxes had pushed away
buyers and big investors over what they claimed to be skyrocketing costs
of production. Officials say a litre of raw grape juice is charged
3,215/- which is seven times higher than a kilo of sorghum used in the
making of a beer that is taxed 450/-.
Observers say such difference had in turn made the local wine brand more expensive than the imported wine from South Africa.
Mr Mavunde says at least 73 tonnes of
grapes have rotten owing to lack of market and its likely more grapes
will lose markets should there be no immediate action to amend the taxes
that frustrate the wine producers.
Dodoma has nine wine factories, two
being the largest wine producing factories. It is not clear how much
grapes are produced annually in the region but the government announced
that another million dollar wine factory is set for construction in the
region this year.
No comments :
Post a Comment