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TZ clearing agents take a hit as diaper manufacturers benefit in new Budget

Friday June 14 2019
TZ minister

Tanzania's Finance Minister Philip Mpango on June 13, 2019 carries the briefcase containing the 2019/2020 Budget. PHOTO | EDWIN MJWAHUZI

By THE CITIZEN

Dar es Salaam,

Clearing and forwarding agents in Tanzania are set to lose some business as the government presented a new process that would allow people to clear their goods at the Dar es Salaam Port without the need for agents.

Speaking in Parliament on Thursday as he presented the 2019/2020 Budget, Finance Minister Philip Mpango said cargo in transit will not have the same exemption.

“The Tanzania Revenue Authority (TRA) will develop a comprehensive system to enable citizens to free their cargos at a more cost-effective way and without delay,” the minister said.

Dr Mpango also proposed a zero customs duty on raw materials used in the production of baby diapers in the country for one year. Initially, the raw materials attracted a 10 per cent customs duty. The tax reduction could reduce the cost of locally manufactured diapers.

“It is also the expectation of the government that the beneficiaries of these tax exemptions will produce these vital products for the health of children and sell them at a cheaper price so that most Tanzanians can afford them,” he said.

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Dr Mpango, however, imposed 25 per cent customs duty on imported diapers, saying this would spur industrial growth and increase government revenues.

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