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Tanzania: Committee Pushes for Exemption of Goods-On-Transit Tax

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Tuesday, 19 April 2016

Tanzania: Committee Pushes for Exemption of Goods-On-Transit Tax

The Parliamentary Committee on Infrastructure Development yesterday threw weight behind companies asking the government to scrap the law that imposes Value Added Tax (VAT) payments on goods in transit. The MPs said importers from the neighbouring countries are now shunning the Dar es Salaam port even before the law comes into operational. This, they said, has caused earnings of the Tanzania Ports Authority (TPA) to drop. The committee chairman, Mr Norman Sigalla, said several issues, including scraping the anticipated VAT charge on transit goods, must be looked at critically if the port is to attract more users. Section 9 (1) of the VAT Act has zero-rated some transit goods and services that are consumed outside Tanzania. The objective of the section is to encourage exports and make Tanzania ports cheaper so that they can comptete with others.

Source: allafrica.com