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Arusha – Actors in the horticultural industry await the action of the government for their tax reduction proposals.
These include VAT on various agricultural inputs such as refrigeration plants,
The proposals were sent to the Task Force on Tax Reform under the auspices of the Ministry of Finance and Planning. last March by the Horticultural Association of Tanzania (Taha), a pressure group based here. "We have challenges on taxation, they have implications for the horticultural industry," says Kelvin Remen, director of Taha Policy and Advocacy.
He told BusinessWeek that horticultural stakeholders by Taha wanted reforms on certain tax laws and regulations that he Mr. Remen alluded to the budget speech recently delivered in Parliament by the Minister of Finance and the Minister of Finance. Minister of Finances. The 2018/19 finance bill that did not stress their proposals, but are optimistic that the government will act on their demands.
"The proposals presented are solutions to most of the tax challenges faced by industry players that hinder growth" Among the reforms sought are the 2014 VAT Act which, according to the official, It now applied to several agricultural inputs and implements that were originally exempted
. Items such as biological control agents, storage, post-harvest and cooling facilities and equipment, materials and equipment were used. packaging, refrigerated containers and peat agro-networks are taxed.
Taha wants the items on the list as well as spare parts the greenhouse, the equipment of the irrigation system such as dams and pipelines also need to be considered for exemption.
"These are important items and equipment in modern agriculture. Therefore, exempting them will make them affordable for farmers, reduce post-harvest losses and increase productivity in agriculture, "he said.
The Import Law on Materials Packaging for horticultural products is also requested. (19659015) Packaging materials are essential elements for preserving the quality of horticultural products such as flowers, vegetables and fruits in particular.
Taha also seeks exemption from excise duties on plastic packaging materials intended for the packaging of horticultural products intended for export markets.
Currently, they are subject to excise duties and less competitive in international markets, "said the sub-sector of horticulture. 8/2019 sent to Ministry
The Tanzania Revenue Authority (TRA) has been accused of forcing importers of inputs and horticultural equipment to pay "very high and unjust" taxes due questionable tax assessments.
report, has prompted horticultural companies to incur significant losses during the import "to the extent that they have stopped importing even very important agricultural inputs to support their farming operations".
Taha also disagrees with the tax horticultural farms and want the exempt entities to pay the fees. Currently, they are charged from 500,000 to 2 million shillings a year, depending on the size of the farm.
Since fire and rescue services are located in cities and farms far from urban centers, horticultural farmers
Many farms have set up their own fire-fighting systems "and therefore, imposing fire taxes on them is an additional cost for businesses, "the report adds.
Horticultural Production Growth has been strong over the last five years, thanks to a favorable environment for investors and growing demand in foreign markets.
According to Jacquiline Mkindi, CEO of Taha, exports will reach $ 1.3 billion in three to five years. the production trend is sustained
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