Lawmakers raise concern over positive impact of tax incentives, exemption

THE government has placed tax incentives and exemption to promote investments and also control inflation for the benefit of citizens, but some legislators have posed doubts about its positive impact as prices of essential commodities remain high.

A representative of Mtambwe Constituency, Dr Mohamed Ali Suleiman said food prices were going high and wanted to know there was no relief in the area.

He said there has been relief on tax for sugar, rice and wheat flour as well as subsidy on fuel, but food prices have remained high.

“I think some investors and traders are cheating on us, we want clarification on the situation,” he said.

In response, Deputy Minister of State, President’s office (Finance and Planning) Mr Makungu said the current prices reflect positive impact of subsidy and tax incentives.

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“The prices would have been higher if the government ignored tax relief.”

He said that fighting corruption in investments and dishonest traders, requires cooperation. He asked the private sector and citizens to work closely with the government to end the problem.