Crude oil dealers in the region have asked the government to introduce a tax waiver on their products; a move they say will facilitate the growth of local industries.
They have now appealed to the government to expunge Value Added Tax on their products.
According to Atul Mittal, the director of Mt Meru Millers, imported crude oil were free off tax levies, thus directly affecting local business and that it was best for the government to intervene.
“The tax regime is costing us dearly as our products can no longer compete with imported products,” lamented Mittal before the Minister for Industry, Trade and Investment, Charles Mwijage recently.
If local crude oil market was to grow, it is important for the government to introduce a tax waiver on locally manufactured products, opined Mittal.
According to Mittal, oil industry was a reliable source of employment to Tanzanians, with an estimated 400,000 people working in the sector.
On his part, Mwijage challenged the proprietors of oil companies in the country to adhere to health and safety measures for their staff as well as ensuring their social welfare.
Last week, Uganda and Tanzania agreed to build a crude oil pipeline across the two East African countries, linking landlocked Ugandan oil fields to the Tanzanian coast.
The proposed pipeline would cover 700 miles, its construction would cost $4 billion, and it would create 15,000 jobs, according to President John Magufuli .
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