DODOMA: THE government is exploring ways to reduce or eliminate import duties on gas-powered vehicles and their components to encourage more Tanzanians to adopt cleaner energy options.
The Deputy Minister for Energy, Judith Kapinga, announced this in the National Assembly on Wednesday, saying that the government is taking significant steps to promote the use of natural gas in the transport sector.
Additionally, she said efforts are underway to attract domestic and foreign investors to set up factories for manufacturing spare parts required for converting vehicles to gas.
She said this in response to a basic question from Special Seats MP, Grace Tendega (CHADEMA) who wanted to know the government’s plan to reduce some taxes so that more Tanzanians can import vehicles with gas-powered systems.
Responding to the question, Deputy Minister Kapinga said that the government, through its 2023/24 main budget, granted a 25 per cent customs duty waiver for engines of vehicles using natural gas when imported into the country.
Additionally, the government is continuing to take various steps to encourage the private sector, both domestically and internationally, to invest in industries that manufacture spare parts used in installing natural gas systems in vehicles and machinery in the country.
In a follow-up question, she wanted to know how many investors have been found after the private sector was involved in manufacturing these spare parts.
Responding, the Minister for Finance, Dr Mwigulu Nchemba, said that the government has taken steps whereby for the 2024/25 financial year, it has considered reducing taxes on vehicles and spare parts that use gas.
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“However, we have received the MP’s comments and we will continue to work on them even in the 2025/26 fiscal year, during which we have started preparations to prepare new tax measures and government incentives, considering that President Samia Suluhu Hassan is a champion of the use of clean energy,” he said.
Likewise, in a supplementary question, Special Seats MP Esther Matiko (CHADEMA) wanted to know the government plans to set up a station to convert diesel vehicles to gas systems, especially on trucks and buses.
Deputy Minister Kapinga, responding to the question, acknowledged that currently, most stations are for converting petrol systems and that they are continuing to build stations to accommodate diesel vehicles.
She said that the systems have a big difference and that for petrol to gas it was easier than those using diesel and in collaboration with the private sector, these stations will be established to meet the existing demand.
Earlier, in a basic question, the Kondoa Urban MP Ally Juma (CCM), wanted to know when the government will extend the rural electrification project to the Tampori, Kwamtwara, Chemichemi, Chandimo, Dumi, Hachwi and Guruma areas of Kondoa.
Responding, Ms Kapinga said that the government, through the Rural Energy Agency (REA), is continuing with the implementation of projects to extend electricity to rural and suburban areas and that all villages in the Kondoa Urban constituency have been electrified.
She added that the Tampori and Chemichemi areas will receive electricity through a project to extend electricity to 15 hamlets in each constituency.
She said that the government, through TANESCO and REA, continues to coordinate efforts to distribute electricity to the Kwamtwara, Chandimo, Dumi, Hachwi and Guruma areas, depending on the availability of funds.”
