Zanzibar — PRESIDENT Hussein Ali Mwinyi has said the Value Added Tax (VAT) on sugar imports will be withdrawn during the holy month of Ramadan, as he appeals to traders not to hike prices.
"We have decided to slash the VAT on sugar imports, therefore there should be no excuse for importers and retailers to sell sugar at high prices," President Mwinyi said during his daylong visit to some wholesale and retail markets in the Unguja Urban-West Region. He said that the Zanzibar government is taking all the necessary measures to control inflation, but some dishonest traders still increase prices even on locally produced items like cassava, fish, vegetables, fruits and bananas.
"Stop unnecessary price hikes during Ramadan, causing inconveniences to the majority of the poor," Dr Mwinyi explained after his special visit to the Jumbi auction market, Darajani and Malindi fish markets.
He said that there was no reason for a price increase, particularly during the holy months of Ramadan when Adult Muslims fast to observe the fifth pillar of Islam.
The Month is expected to start before mid-next month. Dr Mwinyi said as Muslims prepare for the holy month of Ramadan, some traders also develop a habit of raising the price of goods without any genuine reason.
He pointed out that cassava, bananas and fruits are relatively tax-free, but the prices continue to increase, "This habit should stop and in case of challenge, traders or members of the business community seek consultation with the government." He further promised that the government would do everything possible to reduce the cost of doing business or obstacles so that traders also reduce the prices of the products they sell to end users.
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Dr Mwinyi warned traders who will be found to be selling the sugar at a higher price than the indicative price set after the withdrawal of VAT, will be held accountable including the risk licence to be revoked.
Commenting on fish handling and business at the Malindi fish market, Dr Mwinyi raised serious concerns over filthiness, prompting the government to form a committee that will ensure proper operation or management of the famous Malindi fish market.
"We promised to construct modern buildings or structures so that business can be done in better places but it is unfortunate that there is a lack of maintenance. I am told that the ice plant is damaged, and the environment is dirty," Dr Mwinyi lamented as he warned executives.
