Government says working on complaints about levies on forest products

 

·         Speaking at the seventh Njombe Regional Business Council, Dr Ashatu Kijaji, the minister for Investment, Industry and Trade said the Finance and Planning ministry will convene a public meeting to find lasting solutions. PHOTO | COURTESY

·         Dickson Ng’hily

·         In-depth reporting & investigative journalist

·         Mwananchi Communications Limited

Summary

·         The government yesterday promised to act after traders dealing in forest products said a litany of taxes, levies, fees and charges was having an adverse impact on their businesses

Njombe. Forest-related traders complained yesterday about taxes, levies, fees and charges that they claim are impeding their business, with the government vowing to address the issue in the next financial year.

Speaking at the seventh Njombe Regional Business Council, Dr Ashatu Kijaji, the minister for Investment, Industry and Trade said the Finance and Planning ministry will convene a public meeting, scheduled next week, to find lasting solutions.

“Taxation is a legal matter, I can’t just come and reverse through a decree, legal procedures must be followed, so my colleague in the ministry of Finance and Planning, Dr Mwigulu Nchemba, has convened a stakeholders’ meeting to be held next Wednesday (January 11),” she explained.

According to Dr Kijaji, through the said meeting, businesses and other stakeholders in the country’s economy will present taxation-related issues and the government will work on them. She added that any adjustments will be implemented in the upcoming financial law.

“We are doing this in the same spirit with our President, Samia Suluhu Hassan, who has decided to strengthen the private sector as they are the engine of the country’s economy. We should not serve as a stumbling block for the private sector, we need them for the growth of our economy,” Dr Kijaji noted.

She added: “The World Bank and other multilateral institutions have anticipated a global economic downturn due to severe downside risks connected with new Covid-19 variants and concomitant disruptions to economic activity caused by the Russia-Ukraine war.”

Furthermore, the minister said the same institutions have projected the opposite for Tanzania which is as one of Africa’s fastest growing economies and that President Hassan’s administration has envisioned to record at least 6.2 percent annual growth.

According to the 2022 Tanzania Economic Outlook, due to improved performance in tourism, the reopening of trade corridors, and accelerated rollout of vaccines, Tanzania’s gross domestic product (GDP) is projected to grow at 5.6 percent this year.

“To make this a reality, the government is working hard to amend different tax-related legislations that would foster a favourable business environment, and the meeting next week is part of that effort,” she observed.

Therefore, Dr Kijaji reiterated the need for Tanzanian businesses to make use of potential markets that offers markets through preferential trade arrangement such as the East African Community (EAC), comprising seven countries with 174 million people and a combined GDP of about $163.4 billion.

In addition to the EAC market, the minister sought the Southern African Development Community (SADC) which comprises 16 member states with 344 million people and a total GDP of $720 billion.

Besides, Dr Kijaji was of the view that Tanzania’s businesses should not miss the opportunity provided by the African Continental Free Trade Area (AfCFTA), which is a continent-wide market embracing 55 countries with 1.3 billion people and a combined GDP of $3.4 trillion.

“Let’s embrace this opportunity provided by the AfCFTA, in fact; Tanzania is among the seven countries participating in the market’s trade trial, other country include Cameroon, Egypt, Ghana, Kenya, Mauritius, and Rwanda,” she said.

Other markets that the local business should think of, the minister said: “The US has extended the African Growth and Opportunity Act (Agoa) - the agreement provides duty-free access to the US market for eligible Sub Sahara African nations which Tanzania is part of.”

Adding: “Our economic diplomacy pays, during President Samia’s visit to China, it was agreed that about 4,000 Tanzanian produce will enter the Chinese market duty free, so let’s get our product there, but we need to respond to the market’s need and quality.”

Earlier, Mr Antony Mtaka, the Njombe Regional commissioner  explained the need for the country’s tax collector (TRA) and other organs that are tasked to collect levies, to employ wisdom and professionalism.

“Intimidating people or using the President’s name to pressure businesses to pay taxes is an ambiguous conduct with the President’s name; it should not be promoted, in reality; it is an old-fashioned tactic; be a professional,” Mr Mtaka urged.