By Guardian Reporter , The Guardian
A SECTION of MPs have joined demands by city centre wholesalers that the forthcoming East African Logistics Centre does not suffocate local businesses.
Mwanaisha Ulenge (Special Seats) cautioned that it is vital to restrict foreign enterprises from conducting small businesses while they are identified as investors, stressing that the government needs to ensure a friendly environment for small and big businesses, for tax obligations and credit systems to attract investments.
MPs were contributing to a debate on estimates presented by Trade and Industry minister Dr Ashatu Kijaji for fiscal 2024/ 2025, demanding the government to ensure that accords entered with foreign countries “do not affect local enterprises.”
The MP cited the case of Chinese enterprises “who despite being recognized as investors end up selling products at retail prices and make locals suffer,” an argument that a team of cabinet ministers and top administrators engaged with wholesale traders at the central business district in Dar es Salaam early this month.
“The issue here is not the people of Kariakoo,” the MP said in a pre-emptive note, underlining that the issue is how regulations are used “to control them so that they do not conduct smalls scale businesses which can be conducted by Tanzanians.”
Kirumbe Ng'enda (Kigoma Urban) advised that a friendly transport infrastructure at the port is needed to attract neighboring countrieso to use the port to pass their cargo, noting that there are complaints over the lack of friendly credit systems along with account closures exercised by the Tanzania Revenue Authority (TRA).
Dr. Charles Kimei (Vunjo) was of the view that the government “needs to invest in identifying and formalizing small scale businesses so that they pay taxes,” asking the ministry to work on challenges faced by SMEs including TRA tax compliance enforcement methods, reviving tax disputes or records of past years and imposing hefty tax charges.
The minister asked the legislature to approve the 110.9bn/- total estimates for it to implement six priorities, chiefly to improve the environment for investment and doing business, along with conducting market intelligence for local products and services in strategic and international markets. This would stimulate the growth of the private sector such that investors need to be assured that the government is working on protecting the viability of local businesses and those interested can bring capital to Tanzania, she added.
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