By FINNIGAN WA SIMBEYE, 4th May 2011 @ 12:00, Total Comments: 0, Hits: 2767
REINSTATING import duty on kerosene needs the cabinet approval as the matter is a cross cutting subject involving more than one ministry.
Finance Minister, Mr Mustafa Mkulo said the issue is a policy related and should be proposed
by the Ministry of Energy and Minerals before the cabinet discusses before it is approved.
“We are responsible for tax collection only and once policy decision is made at cabinet level.
We have no problem to reinstate the duty,” Mkulo said while responding to calls from stakeholders to reinstate duty charged on kerosene to curb adulteration.
Mkulo said institutions such as Planning Commission and Energy and Water Utilities Regulatory Authority (EWURA) are important to provide input into the process.
Former Minister for Finance, Zakia Meghji waived import duty on kerosene in 2005/6 budget
to reduce pump prices for the commodity which is used as source of energy by majority
rural residents.
Widespread fuel adulteration has forced stakeholders to press the government to reintroduce
duty charged on kerosene to tame the problem.
Tanzania Association of Oil Marketing Companies Chairman, Mr Seelan Naidoo told the
'Daily News' earlier this week that fuel marking technology introduced by Energy and Water Utilities Regulatory Authority last year to curb adulteration and duty evasion is hiking fuel prices.
“Imposing taxes on kerosene is actually the simplest way of discouraging use of kerosene in
adulteration,” Mr Naidoo who is also Engen Tanzania Limited Managing Director, argued.
He said ever since the fuel marking technology was introduced by Energy and Water Utilities
Regulatory Authority last September, there is yet to be established substantial evidence to argue that the technology has assisted in curbing tax evasion through adulteration.
“It’s also unclear if the tax-waiver on kerosene benefits the low income consumer because of presence of adulteration,” Naidoo argued.
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