Cement smuggled via Z'bar Channel denies govt billion

BabuK · 2013-05-20T18:08:15+00:00

The government is losing at least 15bn/- per year in taxes due to smuggling of cement from Zanzibar to Tanzania Mainland, it has been revealed in Dar es Salaam at the weekend. Speaking at the companys 2013 shareholders Annual General Meeting, the Tanga Cement Company Limited (TCCL) Managing Director, Erik Westerberg said unfaithful businesspeople used Zanzibar part to import cement to the Mainland. Currently, Zanzibar seems to have three to four times higher number of cement consumption than the Mainland while there are no major infrastructure or construction works that support such big consumptions, said Westerberg. In the actual fact, he said, Tanzania does not need to import cement as local producers are able to satisfy the local market, adding that what is needed is a fair market ground. However, he told TCCL stakeholders that the company through its reputable Simba brand cement, increased sales volume by 12 per cent in 2012 compared to 2011, a growth rate well above the total Tanzania cement market. A prosperous economic growth was also recorded in the East African Community and the companys export operations in Rwanda and Burundi increased sales by 55 per cent compared to the previous year, he also said. For Tanga Cement Company 2012 was a truly remarkable year, with a number of new records being set. Our clinker production reached the highest level ever in the companys history, with a kiln overall equipment efficiency of over 80 per cent, he said. The TCCL Acting Chairperson, Prof Samuel Wangwe, said he was afraid that foreign cement businessmen may be using Tanzania as their dumping site supported by their governments. He called on the government to put for competition the business ground for both local and foreign cement producers. Prof Wangwe said the firm would expand its clinker production through the construction of Tanga Kiln 2 at the cost of USD165m starting mid this year. The kiln is expected to start production in October 2015. On completion, the company will produce 600,000 more tonnes of cement per year, he said. The dividend of 100/- per share was announced during the meeting. TCCL through its corporate social investment programmes in health, education and environment spent 400m/- last year. It was also awarded super brand status and Tanzanias best presented annual report for the third time. Contacted for comment Industry and Trade deputy minister Gregory Theu could said he was attending a meeting. On Wednesday the Tanzania Revenue Authority (TRA) issued a strong warning against traders and owners of transport facilities against engaging in smuggling of goods along the Indian Ocean coast, saying stringent measures, including confiscation of property, would be taken against the culprits. The revenue agency warned people residing at Mbweni, Mlingotini, Ununio, Kawe, Msasani, Kunduchi and Kigamboni in Coast and Dar es Salaam regions to beware of using smuggled commodities because they can cause health risks. It said that the smuggling of goods was against the Customs Management Act of 2004 and denied the government revenue and put the health of people at risk. Some of the goods smuggled included cooking oil, rice, sugar, powder milk, torch batteries and clothes, it said. The authority calls upon people residing in the spotted coastal villages to report to responsible agencies whenever they come across goods imported through unauthorised roots and promised to award anyone who will provide relevant information leading to the curbing of illegal business. SOURCE: THE GUARDIAN

Thread starter BabuK
Start date May 20, 2013

BabuK

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

Cement smuggled via Z'bar Channel denies govt billion

BabuK

JF-Expert Member

Our Community

Regional Communities