Africa-Press – Tanzania. TANZANIA on Thursday announced repossession of all privatised industries which have remained dormant for more than two decades. Prime Minister Kassim Majaliwa revealed the government decision, noting that an assessment was going on to pave the way for new investors to take over and run the factories profitably.
The Premier told the Parliament that the government took the decision to privatise industries, factories and plantations in order to get enough tax and create job opportunities for the locals but most of the investments have remained defunct.
Mr Majaliwa was responding to a question from Ndanda MP Cecil Mwambe (CCM), who sought to know why the cashew nuts processing factories were not performing well in Southern regions. In 2019, the late fifth phase President John Magufuli ordered the Ministry of Industry and Trade to conduct a thorough inspection and assessment of privatised cashew nuts processing industries countrywide.
He also ordered the repossession of all dormant industries. In the same year, the then Minister for Industry and Trade, Mr Joseph Kakunda repossessed 15 formally privatised industries over violation of investment obligations, threatening to reclaim 33 others unless their investment reports were revealed.
The 15 industries which were reclaimed included Moshi Pesticides, Tembo Chipboards, Dakawa Rice Mills, Mang’ula Machine Tools, Newala I Cashew Industry, Mkata Saw Mills, Utegi Diary and Ilulu. Others were Lindi Buko, Kilimanjaro Paddy Hauling, Shinyanga Meat Factory, Mwanza Leather Factory, Mtama Cashew Factory and National Steel Company Yesterday, the Premier said the government would offer the industries to new investors who will demonstrate big commitment to improving the investments and creating employment opportunities.
Moreover, the Prime Minister directed religious and charitable organisations to abide by and stick to government’s directives on tax exemptions. The Premier said it has come to the government’s attention that some religious and charitable organisations which qualify for tax exemptions on imported goods contravene the directives, thus causing unnecessary delays.
“Religious and charitable organisations must abide by the directives to avoid delays and storage charges which they incur at entry points,” said Mr Majaliwa.
According to Mr Majaliwa, the law needs religious and charitable organisations to write to relevant bodies indicating what exactly they are bringing into the country for the importers to benefit from tax exemption. He said some religious institutions have been listing items which are different from those shipped in.
He said the government has put in place strategies for religious institutions to import goods duty-free with the view to promote development but some have been abusing the privilege. The PM further observed that late submission of exemption requests was another factor that causes delays in clearance of goods imported by religious and charitable organisations.
Mr Majaliwa, however, said that the government has issued directives to institutions in all entry points including airports and ports to fast-track the clearance of goods imported by religious institutions.
