Introduction of VAT hurts business

DAR ES SALAAM. — The Tanzania Ports Authority (TPA) said on Saturday the recent introduction of the Value Added Tax (VAT) on transit goods and the single customs territory have decreased business at the Dar es Salaam port by 42 percent since July.

Deusdedit Kakoko, TPA Director General, said the port was now trying to lure back traders, especially from the Democratic Republic of Congo who shunned the port following the introduction of the two services.

Briefing a parliamentary committee on Industry, Trade and Investment and the ports stakeholders in Dar es Salaam, Kakoko said cut-throat competition at the Dar es Salaam port which has intensified has led to cargo diversion to other regional competing ports.

He said, to lure them back, the government would engage local stakeholders with the Congolese businessmen through a one-on-one sharing experience aimed at improving the business at the port.

“I wish to extend an invitation for you (stakeholders) to join hands with TPA and undertake a vigorous promotional and customer awareness campaign in DRC,” he said.

Kakoko said since the introduction of the two services in July this year, business has dropped by 42 percent leading job losses in various sectors including freight forwarding and clearing companies and inland container deports.

“We have already initiated the necessary preparations for the intended visit to the Kivu and Katanga provinces in the Eastern DRC,” said Kakoko.

He appealed to the stakeholders to facilitate to their delegates in terms of air tickets, subsistence allowances and any other networking expenses that may be required.

“I believe that our team work spirit is necessary to enable us face the existing challenges, build trust and reputation and improve services delivery, which would ultimately boost our volume of business for DRC,” he said. — Xinhua.