Tanzania: Industrialists Hail Nuisance Taxes Reduction

Local industrialists and economists have welcomed a move by President John Magufuli to lower nuisance taxes to owners of industries; a move they say will help to boost the country’s industrial economy.

While in Singida Region on Sunday, Dr Magufuli tasked two ministers to devise the best strategy to reduce taxes that haunt industrialists in the country. He directed Trade, Industry and Investment Minister, Charles Mwijage and his counterpart in the Finance and Planning portfolio, Dr Philip Mpango to meet and amicably deliberate on solutions to reduce taxes on industries that create many job opportunities for Tanzanians.

“We should create an environment for more industries in the country and if we do not make immediate action now, we will be late,” said the Head of State during the official launch of Mount Meru Millers Limited, a sunflower factory.

Yesterday, a prominent businessman, Mohammed Dewji supported a move by President John Magufuli to think of reducing taxes imposed on local industrialists, saying the directive will help to encourage establishment of more industries in the country.

The former politician, philanthropist and the owners of Mohammed Enterprises Group (MeTL) gave kudos to the Head of State during an interview with the ‘Daily News’. Mr Dewji said the President’s directive came at the right time as the country yearns for a middle income economy via industrialisation.

Currently, Tanzania has 3,306 industries, according to the Minister of Industries, Trade and Investment. According to the University of Dar es Salaam (UDSM) senior economics lecturer, Dr Elinawi Minja, the decision by the President was yet another strategy to boost industrialisation.

“If the new directive does not contravene the international agreements, it will help the country in its move to boost the performance of local industries, provided that the prices will go down and so does the quality of products”.

He insisted that the local industries should maintain the quality of products. His sentiments were not different from those of Mzumbe University senior economics lecturer, Professor Honest Ngowi who said by lowering different forms of taxes to local industrialists, the price of the products were likely to go down.

“This will equally help to increase employment opportunities and reduce bureaucracy and in my views, the President’s directive will add up investment opportunities in the industrial sector,” he said. While in Shinyanga Region at the weekend, the Head of State reaffirmed his firm resolve to have iron factories in the country, promising free land for prospective investors interested in putting money in the sector.

President Magufuli pledged to offer free land to investors determined to invest in iron processing factories, saying he will equally look on the modalities to adjust the import duty on the products. “I was yesterday speaking to TRA (Tanzania Revenue Authority) Commissioner General on the issue… we want more investments in iron factories,” he noted.

Dr Magufuli further directed all top leaders to ensure that they work on peoples’ problems as well as protect the local industries to achieve the country’s industrialisation agenda.


Source link : http://allafrica.com/stories/201803140601.html

Author :

Publish date : 2018-03-14 12:13:48

share on: