DAR ES SALAAM: MANUFACTURERS in Dar es Salaam have urged the government to reconsider municipal charges for loading and offloading containers, arguing that the fees increase production costs and hinder competitiveness.
The manufacturers, through their association-the Confederation of Tanzania Industries (CTI) said that the newly introducing fees have placed additional strain on local businesses, forcing them to either absorb the extra costs or pass them on to consumers.
They also urged that a review of the charges could help lower production costs, stimulate business growth and highlight that other municipalities either do not have such fees or charge much lower amounts.
The Minister for Industry and Trade, Dr Selemani Jafo, asked the manufacturers to give the government 60 days to address the issue in collaboration with the Ministry for Finance and the President’s Office, Regional Administration and Local Government (PORALG).
“We are taking these concerns seriously and will work on a resolution within two months,” Dr Jafo told CTI members who met in Dar es Salaam on Monday to deliberate specific on the issue.
The fees in question were recently imposed by Dar es Salaam city authorities, whereas previously, it was supposed to be charged at the municipal level when the container was being loaded or offloaded. But later was agreed to be charged a one stop centre—at the regional level.
The Dar es Salaam Regional Administrative Secretary (RAS), Dr Toba Nguvile, acknowledged the business community’s concerns, particularly the concern that container handling fees are high.
“Their, manufacturer, proposed for the fees to either be scrapped off altogether or a bulk discount of 50 per cent…though bulk discount proposal, require further discussion,” Dr Nguvile said during the single-day meeting.
The Dar RAS said these charges were the outcome of municipal’s bylaws and intended to support public services.
The CTI Executive Director, Leodegar Tenga, said that the additional charges have increased production costs, making local industries less competitive.
“The government’s commitment to reviewing the charges within 60 days is a step toward creating a more business-friendly environment. Manufacturers are willing to pay taxes, but the charges must be justifiable.
“Industrial development requires a favourable environment. We appreciate the Minister’s commitment to resolving this issue because industries also create jobs and contribute to government revenue,” Mr Tenga said.
The CTI First Vice Chairperson, Mr Hussein Sufiani, said that while 130,000/- per container may seem like a small fee, it has a significant impact on overall costs, especially since Dar es Salaam is a major export and import hub.
“In business, numbers matter more than anything. Any cost increase affects competitiveness,” he said. One of the affected companies, ALAF Limited, said the burden of the fees particularly in the steel sector is huge.
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“The cost might seem small per container, but for those handling 50 or more at a time, it adds up,” said ALAF’s External Affairs Manager, Ms Hawa Bayuni.
She proposed a fixed, minimal charge that balances business competitiveness while ensuring municipalities still generate revenue.
Additionally, while the government has committed to addressing the issue within 60 days, manufacturers remain hopeful that a fair and balanced solution will be reached to support the growth of local industries.
