Tanzania hailed on taxation of imported sugar

Stakeholders in the sugar industry have commended the government’s decision to introduce tax on imported sugar as raw material.

A representative of Tanzania Sugar Producers Association (TSPA), Mr Hamad Yahaya, told a news conference at the weekend. 

Finance Minister, Ms Saada Mkuya Salum, on June 11, this year, announced there will be a charge of 50 per cent of the CIF value on industrial sugar - imported into the country as raw material.

He said in a statement that: “It is our belief that the decision follows widespread concern over smuggling, cheating and abuse of the facility by various dishonest importers who dodge tax.

“Improper taxation of imports also distort the market, where local producers and other players discharge their fiscal obligation by 100 per cent. We are commending the government for this decision.”

“It is our hope that the government will continue to plug all loopholes used in dodging tax including consignments entering the country as transit cargo but end up in the domestic market tax free, much to the charging of sugar producers and thousands of farmers who depend on sugarcane for their livelihood,” he said.

According to the Tanzania Sugar Board (TSB) the country currently consumes 590,000 tonnes of sugar annually, while the four local sugar industries - Tanganyika Plantation Company (TPC), Kagera, Kilombero and Mtibwa are capable of supplying 291,000 tonnes for the same period leaving a huge gap that is filled by imports.

Source: Daily News, reported from Dar es Salaam, Tanzania

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