Government urged to inspire donors, projects to purchase locally produced goods

 

The Confederation of Tanzania Industries (CTI) has advised the government to talk to the donors and other projects which are being implemented in Tanzania to increase the purchase of their projects’ requirement to at least 50 percent of the respective projects’ values.

This was said by the First Vice-Chairman of CTI, Mr. Jayesh G. Shah when giving vote of thanks at the CTI-TRA Breakfast Meeting held in Dar es Salaam recently.

He said that increasing purchase by at least 50 percent of projects value would support local manufacturers as well as have significant multiplier effect to the country’s economy.

On the issue of the Value Added Tax and Sugar Duty Refunds, Mr. Shah said that the delay has gone beyond one year and that few companies which may have abused the system are making the innocent manufacturers to be unjustifiably penelised.

“The government should use a ‘Rifle’ and not a ‘Short Gun’ approach as most of the abusers are known and it is an open Secret” he underlined.

The major differences between the two is that while shotguns come with a smooth bore, rifles come with spiral bores or rifling, which can easily harm even unintended person/object.

Delay to pay the right taxes has caused companies to be heavily penelised by commercial banks as they are forced to pay interest which is not being passed over to TRA or Government for delaying refunds.

He urged the government to plug the loopholes. He said that even recently, the incidences whereby containerized cargoes are feared to have been taken out of the port without payment of proper taxes which when combined with the effects of smuggled goods through the Zanzibar route and boarders makes business unlevered.

He urged the government to maintain stability and predictability of policies which are prerequisite of attracting investors.

End.