Dar es Salaam — The government has proposed to increase consumption sugar import duty from 25 per cent to 35 per cent as part of the changes recommended in the Common External Tariff (CET).
The Minister for Finance and Planning Dr Philip Mpango announced the measure as he tabled the government Budget for 2018/19 yesterday.
Tanzania imports consumption sugar under specific arrangements to cover the shortage in the domestic market.
The East African nation needs 450,000 tonnes to meet the domestic demand but faces a shortage of 130,000 tonnes which is filled through importation.
Tanzania's four sugar manufacturers produce 320,000 tonnes annually against the east African nation's annual demand of 450,000 tonnes.
In February this year, the Sugar Board of Tanzania said the country planned to increase sugar production from the current 320,000 tonnes annually to 420,000 tonnes by 2020-2022.
Tanzania's four sugar manufacturing factories are TPC in Kilimanjaro region, Kagera Sugar Limited in Kagera region, Mtibwa Sugar Limited and Kilombero Sugar Company in Morogoro region.
Mkulazi sugar project which is being established in Morogoro by two pension funds - NSSF and PPF - is expected to be the biggest one in East and Central Africa, with position to churn out 200,000 tonnes of sugar per year assured.