Tanzania brews another storm with 5pc cargo tax

Nation Media Group
Kenyan truckers have been driven over the edge in a new Tanzanian law subjecting their lorries passing through Namanga border post to five per cent per tonne domestic tax. It will be charged on trucks entering Kenya.

Kenya International Freight & Warehousing Association Chairman Daniel Wainaina said the move is oppressive and discriminatory to Kenyan transporters.

Mr Wainaina said the association has presented their concerns to Tanzania authorities.

"Introduction of the domestic tax on trucks is not in the spirit of the East Africa free trade. This is an unfair trade barrier meant to kick out Kenyan vehicles from Tanzania transport industry. Let the Kenyan Government intervene," said Wainaina.

The law subjecting all lorries with foreign registration plates through the post was effected on Monday this week. It is worth noting that the Namanga post is used majorly by Kenyan trucks.

Mr Wainaina said Kenyan transporters have been suffering in silence pointing out 30-tonne Kenyan trucks, which are considered wide load in Tanzania attracting more charges compared to the same capacity Tanzanian trucks entering Kenyan territory.

Domestic tax certificate​

According to a circular by Tanzania Revenue Authority (TRA) seen by the Nation, all foreign vehicles ferrying cargo into Tanzanian territory must have a domestic tax certificate before authorisation to cross the border. Other foreign trucks exporting to Tanzania are exempted from the new tax.

A spot check yesterday at Namanga One Stop border point revealed that Kenyan drivers and truck owners opposed to the new charges were held at the Tanzanian side.

Truck owners importing goods into Kenya bitterly protested prompting a snarl up at the border point. Operations were halted temporarily with a few truck owners who adhered to the new rule were allowed to proceed.

A 10 tonne truck ferrying perishable goods was slapped with Sh3,000 domestic tax under the new rule.

"The law is oppressive to Kenyan trucks. We are slowly being edged from Tanzania transport business. Traders will be preferring Tanzania trucks which will be significantly cheap," said John Lumelo, a truck owner.

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Mbona KRA ina-charge the same kulipia SGR? Ubaya nn sisi ku-charge the same kulipa loans za kujenga barabara zetu especially kwa transit trucks to SADC region, DRC, Burundi n Rwanda? Kwani hatutaki kujenga more roads na more SGR? kwani northern corridor inafanya nn? where r ur roads to ur northern neighbors to allow us trading with northern frontier states? It is hightime Tanzania should start riping big on her comparative superior infrastructure and strategic geographical location in the region! BTW it should have started earlier! Tatizo nn? Au East African spirit ipo kwa Kenya kutumia roads za Tanzania tu while can't offer the same to Tanzania!?

CC: Tony254

Raising road levy won’t make the SGR attractive​

The National Assembly’s Transport committee has proposed increased levies for traders ferrying their goods by road from the port of Mombasa to Nairobi. The stated aim of the additional fee is to encourage importers to use the standard gauge railway (SGR) whose levy is much lower.

Under the recommendations by the House committee, traders using road to ferry their cargo will part with 2.8 percent of the cost of goods ferried by road — 0.3 percentage points more — in Railway Development Levy, from 2.5 percent currently. Those using the SGR will continue paying the lower fee of 1.5 percent.

Aside from seeking to find more cargo and business for the SGR in a bid to make it viable and thus justify the Sh350 billion used for its construction, there appears to be no plausible reasons for the MPs’ proposals.

While the legislators made the laudable move of shooting down the earlier directive to force all importers to use the SGR, it appears they took away with one hand what they had offered with the other.

The MPs made the valid argument that traders have a right to choose which means of transport is good for them. However, they went ahead to contradict their own ingenious proposal by coming up with discriminative levies.

No directive or amount of increase in levies will make SGR the preferred means of transport for importers. This is a strategy that will not achieve its intended objectives. The only way to attract cargo to the new railway line is to make its use more efficient, convenient and cheaper than that by the road. Transporters have cited a number of reasons to demonstrate that this is not the case currently.

Some importers say using SGR is more costly due to extra fees imposed, delays in clearing goods at the congested Nairobi depot and that they are required to send trucks to collect the goods after clearance. These and other factors do not make SGR the better option.

If these bottlenecks can be removed, traders will definitely use the railway on their own volition because of the benefits that accrue to them. Applying coercive measures in a bid to make the SGR appear viable is not only misplaced but it is also unsustainable.

KENYAN GOVERNMENT SET TO IMPOSE HIGHER LEVY PLAN FOR IMPORTERS AVOIDING SGR​

Photograph — Invest Africa
In a bid to enforce the use of standard gauge railway (SGR), the Kenyan government has imposed a higher rail import levy for importers who choose to transport goods by road, recommending a 0.03 percentage increase (2.8 percent) from the 2.5 percent paid on the Railway Development Levy of the cost of goods ferried by road.

A report released by the SGR committee, states that “importers who choose to use the road transport will attract an additional surcharge of 0.3 percent of the value of goods imported (up to a maximum of $138 (Sh14,900).” But if recommendations of the National Assembly transport committee are adopted, transporters who make use of SGR will pay a lower fee of 1.5 percent of the value of goods.

This recommendation was made by the committee, following concerns raised by Mvita MP Abdulswamad Nassir over the governments directive that required haulage of cargo destined for Nairobi and hinterland through SGR.

However, some importers have voiced out that their transport costs shoot up when they use the rail due to extra fees, more time spent clearing goods at the congested Nairobi depot and the need to send a truck to pick up the goods from there. Importers are requesting freedom of choice on the mode of transport to haul their goods from the port to the final destination without restrictions from any government agency.

In response, the committee says the proposed rate of surcharge can be subject to review by the relevant stakeholders including the Cabinet Secretary for Transport, importers, Container Freight Stations, transporters and the Kenya National Chamber of Commerce, among others.

There are mixed reactions on whether this directive will be implemented as the state had proposed the directive earlier in May, on the use of SGR for all cargo destined to Nairobi. The committee was however forced to back down from its May directive following pressure from regional economies.

Si mlimtuma Rais Kenyatta atume ujumbe kwenye twitter ya kumsfia Magufuli kwa ushindi wa kishindo.

Sasa mnacholalamika nini?

Mtumeni tena Kenyatta asifie kupandishwa "5% PER TONNE" kodi hio, new year itafika 15% ili tujenge fly-over nchi nzima.

This is an indication that we don't need you in our Country, you can trade with Ethiopia, South Susani, Somalia and Uganda, wishing you all the best

joto la jiwe said:

This is an indication that we don't need you in our Country, you can trade with Ethiopia, South Susani, Somalia and Uganda, wishing you all the best

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We only want them if we benefit from them using our infrastructure! If Kenya charges transporters on northern corridor, nn mbaya tuki-charge their transporters using our infrastructure on transit to third markets?

Hii ni machungu ya GOT, wanajua hawawezi compete na kampuni za kenya. Hii ni kelele yao ya kawaida, kama sio juice, biscuit ama vifaranga wana ingilia transport. Hii ndiyo sababu wako nyuma kwa word bank ease of doing business na ndio sababu sahi uganda inapata wawekezaji wa viwanda kushinda Tanzania.

Hii ni mjinga akiwa kwa hali ya ujinga wake. Lakini hata wafanye nini Kenya bado tuko juu yao na watazidi kuisoma namba.

Kevin85ify said:

Hii ni machungu ya GOT, wanajua hawawezi compete na kampuni za kenya. Hii ni kelele yao ya kawaida, kama sio juice, biscuit ama vifaranga wana ingilia transport. Hii ndiyo sababu wako nyuma kwa word bank ease of doing business na ndio sababu sahi uganda inapata wawekezaji wa viwanda kushinda Tanzania.

Hii ni mjinga akiwa kwa hali ya ujinga wake. Lakini hata wafanye nini Kenya bado tuko juu yao na watazidi kuisoma namba.

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Machungu ya GOT wakati wewe ndio unaandika comment ya machungu hapa! [emoji23][emoji23][emoji23]

Embu nikuulize, uliona GOT ikitoa comment ya machungu humu?

babayao255 said:

Machungu ya GOT wakati wewe ndio unaandika comment ya machungu hapa! [emoji23][emoji23][emoji23]

Embu nikuulize, uliona GOT ikitoa comment ya machungu humu?

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Ujinga wa kuzaliwa ndio hio. Lakini namba mtazidi kuisoma jomba!!! Kenya sahi tunapeperuka tukienda mbele nyinyi bado mko kwa ujinga ya ujamii.

Hivi juzi tumeweka trade deal na UK ya $2 billion, nyinyi bado mnakimbizana na lorry za kenya. Tuko mbio kusikizana na Marekani kuhusu trade deal ya $4 billion, nyinyi bado mko busy kazi ni kuchoma vifaranga.

Mtabaki papo hapo.

Kevin85ify said:

Ujinga wa kuzaliwa ndio hio. Lakini namba mtazidi kuisoma jomba!!! Kenya sahi tunapeperuka tukienda mbele nyinyi bado mko kwa ujinga ya ujamii.

Hivi juzi tumeweka trade deal na UK ya $2 billion, nyinyi bado mnakimbizana na lorry za kenya. Tuko mbio kusikizana na Marekani kuhusu trade deal ya $4 billion, nyinyi bado mko busy kazi ni kuchoma vifaranga.

Mtabaki papo hapo.

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Ofcourse why not kama mna-charge trucks using ur roads from Mombasa to Uganda, Rwanda n DRC, why not us charging the same for ur trucks using our roads on the way to DRC, Burundi, Rwanda, Zambia, Malawi? Isn't that beautiful? Kama mnaona 5% is huge then access those markets via either nothern corridor or via Mozambique! U can do the same for our trucks going to South Sudan, Somalia and Ethiopia! if at all they r such trucks using Kenyan inexistent roads! Our trucks just like Kenyan trucks to South Sudan go through Uganda!

Kevin85ify said:

Ujinga wa kuzaliwa ndio hio. Lakini namba mtazidi kuisoma jomba!!! Kenya sahi tunapeperuka tukienda mbele nyinyi bado mko kwa ujinga ya ujamii.

Hivi juzi tumeweka trade deal na UK ya $2 billion, nyinyi bado mnakimbizana na lorry za kenya. Tuko mbio kusikizana na Marekani kuhusu trade deal ya $4 billion, nyinyi bado mko busy kazi ni kuchoma vifaranga.

Mtabaki papo hapo.

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Sasa kama mmeweka trade deal na Uk ni nini imekufanya utoe machungu humu?

Mnapeperuka mkienda mbele according to wewe, ni nini imekufanya utoe machungu humu?

Geza Ulole said:

Ofcourse why not kama mna-charge trucks using ur roads from Mombasa to Uganda, Rwanda n DRC, why not us charging the same for ur trucks using our roads on the way to DRC, Burundi, Rwanda, Zambia, Malawi? Isn't that beautiful? kama mnaona 5% is huge then access those markets via either nothern corridor or via Mozambique! U can do the same for our trucks going to South Sudan, Somalia and Ethiopia! if at all they r such trucks using Kenyan inexistent roads! Our trucks just like Kenyan trucks to South Sudan go through Uganda!

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Naona umeshika kabisa mambo ya media. Hiyo bill Rais aliikataa. Kwa hivyo hakuna hizo charges unasema tafuta kingine cha kusema. Kwanza tumejenga bara bara kubwa kutoka port ili trucks ziweze kuingia na kutoka port kwa haraka.

babayao255 said:

Sasa kama mmeweka trade deal na Uk ni nini imekufanya utoe machungu humu?

Mnapeperuka mkienda mbele, ni nini imekufanya utoe machungu humu?

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HAHA, kumbe kusema ukweli inakuwa ni uchungu! Mtaendelea kubaki papo hapo, huku Viwanda za Uganda zimeanza kuwekeza kenya bila shida. Yani Uganda inakuja mbio kuwapita kwa biashara, nyinyi bado mkichoma vifaranga.

Kevin85ify said:

HAHA, kumbe kusema ukweli inakuwa ni uchungu! Mtaendelea kubaki papo hapo, huku Viwanda za Uganda zimeanza kuwekeza kenya bila shida. Yani Uganda inakuja mbio kuwapita kwa biashara, nyinyi bado mkichoma vifaranga.

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Endelea kujipa matumaini hivo hivo kwa sababu unaruhusiwa wala hujanyimwa.

JPM bado ana miaka mingine mitano hivyo andaa machungu zaidi.

babayao255 said:

Endelea kujipa matumaini hivo hivo kwa sababu unaruhusiwa wala hujanyimwa,

JPM bado ana miaka mingine mitano hivyo andaa machungu zaidi.

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Tuko juu tu sana. Hata magu afanye nini atasoma namba vile Nyerere alisoma namba.

babayao255 said:

Sasa kama mmeweka trade deal na Uk ni nini imekufanya utoe machungu humu?

Mnapeperuka mkienda mbele according to wewe, ni nini imekufanya utoe machungu humu?

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Inakaa kule hawatalipa ushuru!

Geza Ulole said:

Inakaa kule hawatalipa ushuru!

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Tatizo ni MaguPhobia,

Nchi zingine zikiongeza au kuweka ushuru ni sawa ila Tanzania ikiongeza ushuru vilio vinaanza wakiulizwa wanalia nini wanatoa vijisababu vya kijinga na machungu [emoji23][emoji23][emoji23]

Kevin85ify said:

Tuko juu tu sana. Hata magu afanye nini atasoma namba vile Nyerere alisoma namba.

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Hivyo ndivyo mnavyo jidanganga.

Siku mkipata akili muamke ooh nilisahau kwenye akili hapo kuwa mkoloni aliondokaga na akili zenu.

Kazi ni kueneza propaganda na upotoshaji mitandaoni yaani hampendi kuishi kwenye uhalisia.

babayao255 said:

Tatizo ni MaguPhobia,

Nchi zingine zikiongeza au kuweka ushuru ni sawa ila Tanzania ikiongeza ushuru vilio vinaanza wakiulizwa wanalia nini wanatoa vijisababu vya kijinga na machungu [emoji23][emoji23][emoji23]

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CC: Tony254

What's ur opinion on this? doesn't Tanzania have a right to raise funds for her infrastructure just like Kenya does to pay Chinese loan?

Mind u those trucks will be exempted of levies if r to use Tanzanian ports! If u look at a bigger picture we r helping ur government to get back her transporters who in attempt to avoid paying road levies in Kenya decided to use Tanzanian roads! GoK should be thankful on this!

Kevin85ify said:

Tuko juu tu sana. Hata magu afanye nini atasoma namba vile Nyerere alisoma namba.

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Pay Taxes stop complaining. What is 5% to your so called trillion dollar economy? Isn't that pocket change you can easily collect from one day in kibera

Wakenya si huwa mnasema mnamtaka Magufuli, haya sasa huyo tena.
Mitano tenaaaa!