22 January 2018

Tanzania: Spirit Makers List Hurdles to Government's Industry Plan

Dodoma — Some members of the business community want the government to improve on bureaucracy in public offices and up the war on corruption as a way of creating an enabling environment for the private sector to thrive.

Speaking to The Citizen on sidelines of the 3rd high level public-private dialogue on doing business in Tanzania, the Nyati Spiritz Limited chief executive officer, Ms Rupa Suchak said solutions to challenges facing the private sector were taking too long to be reached.

"Some of the issues raised in meetings between the public and private sectors two years ago have not yet been tackled," she said expressing dissatisfaction over why issues pertaining to high excise duty rates and VAT on the spirits and wine industry have not been taken into consideration two years down the lane.

Calling upon President John Magufuli's intervention and help save the legitimate liquor companies, Ms Suchak alleged that the spike of illicit liquor products and consumption of illicit alcohol has been fuelled by individuals who collude with corrupt law enforcing officers.

Nyati Spiritz Ltd recently inaugurated its $20 million brewery in Dar es Salaam in what the company believes was a way of filling the gap between demand and supply of the evolving alcoholic beverages market in Tanzania.

Speaking during the meeting here late last week, minister for Industries, Trade and Investment Charles Mwijage stressed on the importance of dialogue between the government and private sector, insisting that it was through discourse between the two parties that Tanzania would achieve its industrialization agenda.

Another liquor manufacturer who declined to be named echoed the same sentiments, noting that some illicit liquor manufacturers do not pay the rightful taxes.

He said there are about 25 liquor manufacturing companies in the country but three pay taxes promptly while the remaining pay between five to ten taxes only.

Speaking while opening the meeting, minister for Finance and Planning, Philip Mipango said the government is working on issues raised by members of the private sector, noting that a lot of changes have been made, noting that much will be realized in the 2018/2019 budget.


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