CTI asks govt to remove overlapping levies

DAR ES SALAAM: THE Confederation of Tanzania Industries (CTI) has thrown its weight behind the removal of the length of levies imposed by local governments, especially on farm products.

The CTI joined in the removal of the charges after conducting a study to find out its effects mainly on farmers and agri-traders.

CTI Executive Director, Leodegar Tenga, said yesterday during a capacity-building seminar for food and beverage stakeholders in Dar es Salaam that the charges are backpedaling business and investment prosperity in the country.

“For example, there are multiple levies a trader faces when transporting agricultural products from Mbeya to Dar es Salaam…, plus another levy at Dar market.

“The best practice is to charge a trader once in Mbeya. Unfortunately, we have not succeeded in removing these obstacles,” Mr Tenga, a legend footballer, said.

The CTI boss said the government should design a system that recognises if a trader has paid the levies.

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The multiple taxes open a corruption door alongside the entire transport corridor and discourage traders from engaging in legal agricultural products business at the expense of the farmers.

The study was carried out by the Institute of Management and Entrepreneurship Development led by its Director Dr Donath Olomi, an Economist in Dar es Salaam, Tanga, Arusha, Kilimanjaro and Mwanza.

The study highlighted the negative impacts of the levies not only to traders but also on industrialists, countrywide.

The study shows that the length of levies imposed on goods and services increases the cost of doing business to push prices up, hence, discouraging local and foreign investors.

Dr Olomi suggested that the levies should be transparent to the public to enable traders to understand what is charged and the amount.

“Almost all the councils we visited, the charges are not announced anywhere, just imposed. Traders are not sure whether the levies are by the law or not,” Dr Olomi said.

The study suggested that the government should look into ways of removing the overlapping charges that conflict with each other, especially those charged by the councils and government.

For example, a truck delivering farm goods at Kariakoo is subjected to a parking fee and city centre entry fee.

He said the Occupational Safety and Health Authority (OSHA) charges for health checking for some work disciplines and the same is charged by Councils and Municipals.

Ministry of Industry and Trade, Principal Industrial Engineer, Caroline Valerian said the government takes the study suggestions and will work on them to create a friendly environment.