Kishapu DC issues 7-day ultimatum for cotton firms to pay tax

SHINYANGA: KISHAPU District Commissioner in Shinyanga Region, Peter Masindi has given a seven-day ultimatum to all companies that purchased cotton in the district in the 2024/2025 season that have yet to pay to the council to do so immediately.

The DC said some of the business persons purchased cotton in the district but have not paid tax to the authorities and that they must do so immediately or face the law.

He added that any company that owes tax to the Council will not be granted permission to purchase cotton in the district in this year’s 2025/2026 season.

The District Commissioner issued these instructions yesterday during a meeting with stakeholders.

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The DC met stakeholders at the cotton auctioning, which was held at the Shinyanga Cooperative Union (SHIRECU) factory hall, in Kishapu Town.

Mr Masindi asked the Council Director Emmanuel Johnson to write letters to all involved companies so that they can pay the cash to farmers.

“I am directing that all companies owing cotton tax be issued formal letters demanding payment within seven days. Every company must receive their letter by this coming Monday. We will not permit any buyers with outstanding taxes to participate in this year’s cotton purchasing season,” said Masindi.

He explained that the outstanding debts are related to tax obligations for the 2024/2025 purchasing season and despite repeated reminders, the companies involved have failed to comply.