Why the manufacturing having low index rating in Tanzania than retail industry?

[Aristotle Plato]

According to research done by different think tanks in Tanzania shows that the manufacturing industry has the low contribution rate in our national income compared to other industry like retail trading which its exceptional growth has been propelled by importation of goods from outside countries.The question remains to why manufacturing has low indexes than other sectors?

 

[Mhigomkami]

angalia rangi ya owners wa manufac industries, angalia uhusiano kati yao na viongozi wako vile vile angalia kama kweli wanalipa kodi inayotakiwa lastly angalia kama wana mtazamo wa kuwekeza faida ndani ya nchi yako..............ni wabayaaaa ingawa ukweli unauma

 

[Ngongo]

Wakuu uchumi wa nchi nyingi kama si zote dunia umekuwa kwasababu ya maendeleo ya viwanda.Viwanda ni mhimili mkubwa wa maedeleo ya kilimo kwa maana ya malighafi na kuongeza thamani bidhaa za kilimo mfano usindikaji wa matunda,utengenezajiwa wa nguo, na nk.

Tanzania ni nchi tofauti kidogo inadai ina progaram nzuri ya kuendeleza kilimo "kilimo kwanza" bila kuwa na mkakati wa kuendeleza viwanda ambavyo vitasaidia kuongeza thamani bidhaa za kilimo.viwanda vilivyokuwepo tangu enzi za Nyerere vingi vimeachiwa kufa kwasababu za ufisadi na tchnologia duni.Serekali za awamu ya pili,tatu na nne zimeshindwa kuwa na mikakakti ya kuendeleza viwanda.

 

[Alpha]

Poor policies, incompetent authorities, bureaucracy... just read todays paper for instance. These ****** at TRA had been making a mistake for over a decade. all of a sudden they decide to correct it. How much warning time did they give the manufacturers? Did they think about the companies that would have to shut their doors, the jobs and livelihoods that would be lost? By all means correct your mistake but do it in a manner that causes the least amount of disruption possible.

Thursday, 23 September 2010 09:27

By Samuel Kamndaya
A row is simmering between Tanzania Revenues Authority (TRA) and a local soap manufacturer, with the latter crying foul over a sadden change in customs classification of raw materials for detergent formulations.

The Dar es Salaam-based G&B Soap Industries Limited is up in arms with TRA's Customs department over the latter's sadden shift in classification for Linear Alkyl Benzene Sulphonic acid (LABSA), which is a necessary ingredient in production of detergent soap.

For over the past ten years, LABSA has, in Tanzania, been classified under Harmonised System Code (HS Code 2904). Goods classified under this code are pure raw materials and do not attract any duty.

However, to the firm's amazement, TRA has abruptly shifted from the usual classification to classify LABSA under HS Code 3402.
Goods classified under the code are semi-processed and therefore attract an import duty of 10 per cent.

The company which produces and distributes various categories of laundry and toilet soaps, with its famous Family brand, imported several containers of the raw material, only to be told that the product should now attract a 10 per cent duty.

"I did a lot of research when setting up my detergent factory at Mbezi and I only ventured into the business after realizing that LABSA is classified under HS Code 2904….An abrupt shift to HS Code 3402 renders the business profitless," the G&B Soap Industries managing director, Mr Godliving Makundi told The Citizen.

He wondered why TRA decided to shift the classification at a time when his detergent plant - which manufactures Family Detergent - is less than one year old while the products have been imported at zero rates for over a decade.

"While one may think that we businesspeople do always aim at maximizing profits, my concern is why now?" he enquired.

The commissioner for customs, Mr Walid Juma admitted having received complaints from the company, noting however that it has forwarded the question to the World Customs Organisation (WCO) for further clarification.

"We have forwarded the issue to WCO for further clarification," Mr Juma told The Citizen.

Tanzania is a member of WCO – an intergovernmental organisation headquartered in Brussels, Belgium that is entrusted with developing standards and providing technical support for the harmonisation of procedures governing the movement of people and commodities.

He admitted that LABSA had, for a long time in the past, been classified under HS Code 2904, noting however that TRA decided to shift after realising that it was following the wrong line.

"We have been making a mistake in the past… we decided to shift from classifying LABSA under HS Code 2904 to start classifying it under HS Code 3402 to rectify our past mistake once and for all….we could not hesitate to shift for fear of remaining in the wrong direction of things," he said.

He said even other countries in the region classify LABSA under HS Code 3402. "In the world over, it is classified as a semi-processed product and after realizing our mistake, we decided to immediately shift….I'm confident that even the WCO will agree with us," he stressed.

The other prominent player in detergent soap production - Murza Soap and Detergent Limited - requested to be flourished with enough information before commenting.

"Let me talk to Mr Makundi first and I will be able to comment… I want to talk to him so that we may know how to deal with it," the company's managing director, Mr Haroon Zakaria, told The Citizen over the phone.

Crude palm oil experience
Available data indicate that sudden shift in import duties for raw materials used in the manufacturing of soap and allied products has played havoc on a number of factories during the past four years.

Many factories that used to produce soap ceased their operations soon after the country imposed a 10 per cent import duty on crude palm oil during 2006/2007 budget.

Companies like Dar es Salaam's Lackhani Soap Industries, IPP/Bodycare Ltd, Unlever's Mikocheni factory, Tanga's Tip Soap, Mbeya's Highland Soap, Mwanza's Lake Soap Industries and Morogoro's Abood Soap Industries are among those cited as being victims of abrupt changes in taxation, condemning over 1000 people to joblessness.

Manufacturers fear that the LABSA issue may also have far-reaching negative ramifications on budding detergent soap factories. In the end, the market may be left out to be filled by Kenyan detergent soap, where there are two companies that have plants that process Linear Alkyl Benzene (LAB) into LABSA.

In Tanzania, there are no such plants even though it is said that Murza is building one. Purchasing LABSA from Kenya, according to Mr Mkundi, is even worse than buying from India and pay the 10 per cent duty.

Local soap maker cries foul over TRA's Decision on tax

 

[LazyDog]

Many factories that used to produce soap ceased their operations soon after the country imposed a 10 per cent import duty on crude palm oil during 2006/2007 budget.

Companies like Dar es Salaam’s Lackhani Soap Industries, IPP/Bodycare Ltd, Unlever’s Mikocheni factory, Tanga’s Tip Soap, Mbeya’s Highland Soap, Mwanza’s Lake Soap Industries and Morogoro’s Abood Soap Industries are among those cited as being victims of abrupt changes in taxation, condemning over 1000 people to joblessness.

Manufacturers fear that the LABSA issue may also have far-reaching negative ramifications on budding detergent soap factories. In the end, the market may be left out to be filled by Kenyan detergent soap, where there are two companies that have plants that process Linear Alkyl Benzene (LAB) into LABSA.

In Tanzania, there are no such plants even though it is said that Murza is building one. Purchasing LABSA from Kenya, according to Mr Mkundi, is even worse than buying from India and pay the 10 per cent duty.

Local soap maker cries foul over TRA's Decision on tax

Ni jambo jema kuongeza kodi kwenye import ya bidhaa ili bidhaa hiyo izalishwe hapa nchini - ili mradi tu matayarisho ya kisera na utekelezwaji wake yakifanyika vizuri.
Ila kinachoonekana kufanywa hapa pengine ilikuwa imelenga kuwaadhibu baadhi ya local manufactures wasioambatana na "System"?

List ya hawa wenye viwanda ni kina nani? Mahusiano yao na CCM yakoje? Je, kuna yeyote katika hawa ni kampuni ya kigeni?

• Dar es Salaam-based G&B Soap Industries Limited,
  
• Dar es Salaam’s Lackhani Soap Industries,
• IPP/Bodycare Ltd,
• Unlever’s Mikocheni factory,
• Tanga’s Tip Soap,
• Mbeya’s Highland Soap,
• Mwanza’s Lake Soap Industries and
• Morogoro’s Abood Soap Industries
  

 

[LazyDog]

Wakuu uchumi wa nchi nyingi kama si zote dunia umekuwa kwasababu ya maendeleo ya viwanda.Viwanda ni mhimili mkubwa wa maedeleo ya kilimo kwa maana ya malighafi na kuongeza thamani bidhaa za kilimo mfano usindikaji wa matunda,utengenezajiwa wa nguo, na nk.

Tanzania ni nchi tofauti kidogo inadai ina progaram nzuri ya kuendeleza kilimo "kilimo kwanza" bila kuwa na mkakati wa kuendeleza viwanda ambavyo vitasaidia kuongeza thamani bidhaa za kilimo. viwanda vilivyokuwepo tangu enzi za Nyerere vingi vimeachiwa kufa kwasababu za ufisadi na tchnologia duni.Serekali za awamu ya pili,tatu na nne zimeshindwa kuwa na mikakakti ya kuendeleza viwanda.

Hiyo ndio Tanzania chini ya CCM!