Tanzania has reintroduced value added tax on sanitary products
after research showed that scrapping of the tax last year has not helped
to lower consumer prices in the domestic market, according to Deputy
Finance Minister Ashatu Kijaji.
“Instead of the
anticipated outcome, domestic factories reduced production due to the
tax factor, resulting in job losses,” Dr Kijaji told parliament while
explaining the controversial reinstatement of the VAT in the 2019/2020
budget.
The government has sought to appease local
manufacturers of sanitary pads by lowering corporate tax from 30 per
cent to 25 per cent for new investors in the industry for two years.
“We will also extend a similar benefit to existing producers from July 1 this year through to 2021,” she added.
Reducing dependence
The
move is aimed at reducing dependence on imported products and
increasing domestic production, which should lead a drop in prices, said
Dr Kijaji.
She said the research was conducted by the Ministries of Finance and Industry, and the Fair Competition Commission.
Vocal
opposition politician Zitto Kabwe criticised the government’s move,
saying indicative prices should have been introduced to foil
unscrupulous traders.
“Menstruation is a biological
issue and bringing back VAT is an injustice to women, especially low
income earners,” Mr Kabwe said.
No comments:
Post a Comment