THE Confederation of Tanzania Industries (CTI), has commended the 2017/2018 nation’s budget estimates, saying they have positive impacts on the industrial sector and the national economy at large, subject to the details in the financial bill.
Speaking to reporters in Dar es Salaam yesterday, CTI Chairman, Dr Samuel Nyantahe said the budget estimates tabled on Friday in Parliament by the Minister for Finance and Planning, among other things aims at accelerating the pace of economic growth, with specific emphasis on industrial development in the country.
“Budget for 2017/18 as presented, shows that about 62 percent of the budget, 19.7/tr will be for recurrent expenditure, while the remaining 11.99/- tr/- will be dedicated to development” he said.
Adding that “it is our expectation that the priority areas for the development budget will be directed towards infrastructure development, which has a direct link to the revitalization of the industrial sector in the country”
He commended the government’s efforts that aim at increasing industrial production and enabling the sector to contribute towards economic growth, job creation and poverty alleviation.
He outlined some of the efforts as increasing government revenue and reducing government expenditure, undertaking various projects that will stimulate industrial development, putting more emphasis on the development of the industrial sector which will create more employment and utilize locally produced raw materials.
Dr Nyantahe said the private sector is anticipated to play the role of being the engine of growth as the government has committed itself in increasing quality of education, health services, clean water and power supply.
The government has expressed its commitment during the budget estimates in fighting against corruption, implementing major reforms in public service, customer care and reducing bureaucracy as well as transforming and strengthening agriculture, livestock and fisheries sectors and promoting local value addition and commercialization.
He mentioned the measures, which if implemented will have positive impact on the manufacturing sector as maintaining import duty of 25 percent and introduction of specific duty of 200 USD per ton on metal and steel products used in construction as it protect domestic industries which produce the items.
Dr Nyantahe observed that the will to protect domestic industries could be well felt in excise duties on locally produced bottled water, granting duty remission on raw materials used for local manufacturers of motor vehicle “air filters”, and removing VAT on capital goods in order to reduce the cost of importing machinery and equipment, “Adjusting/removing various levies and fees charged by ministries, regions and independent government departments.
These changes will be effected in the finance bill of 2017/2018. This measure will improve business environment and reduce cost of doing business and removing of Tanzania Bureau of Standards (TBS) inspection fee on cotton, tea, cashew nuts and coffee.
The measure intends to reduce cost of production to the industries” The above measures, Dr Nyantahe said, will enable domestic industries to enhance production, improve consumer welfare, promote use of local materials, enhance competitiveness and stimulate economic growth.