|7. July 2009
Tanzania: Industrialists Hail Zero Tariff On Crude Oil
Dar Es Salaam — The Confederation of Tanzania Industries (CTI) has welcomed the government decision of applying zero tariff on crude palm oil, a move likely to boost local oil industries.
Other East African countries started applying the zero tariff system in 2005, CTI board member Ravi Chande told journalists last week.
East African partner states signed EAC Customs protocol in 2004. The protocol said zero tariff on imported raw materials and intermediate goods.
Tanzania had, however, not started applying it. The situation negatively affected the local edible oil producers. Following the continuous imposition of duty on raw materials and capital goods that was scrapped in the customs protocol, Tanzanian oil producers could not withstand the completion within the EAC market.
Some local edible oil producers were forced to close down. Some of the companies that stopped producing edible oil include Bidco Oils & Soaps Ltd, East Coast Oils & Fats Ltd, Mukwamo Industries Ltd, Murzah Oil Mill and Best Tigra Industries Ltd.
"The decision of joining fellow EAC member states in imposing zero tariff on crude palm oil is a prudent one," Chande noted.
Whereas Kenya and Uganda gained from crude palm oil at zero tariff, Tanzania failed to sustain the situation of the continued imposition of the tariff. During the recent 2009/10 budget, Finance and Economical Affairs Minister Mustafa Mkulo announced the zero tariff system on crude palm oil.