TEGAMAT cries foul over smuggling

TEXTILE and Garment Manufacturer Association of Tanzania (TEGAMAT) has requested the government to take stern measures against traders who smuggle clothes from abroad and affect production of local factories.

The call was made by TEGAMAT Executive Secretary, Mr Adam Zuku during a special meeting involving various stakeholders held in Dar es Salaam on day.

Mr Zuku said some unscrupulous traders import clothes from abroad contrary to the government’s procedures, including evading taxes, hence causing losses to the government coffers.

He explained that recently the government through Tanzania Revenue Authority (TRA) seized two containers in Tabata area, Dar es Salaam, where there were garments that had entered the country’s market contrary to the procedures.

He said that apart from the containers, there are also reports of containers being seized in various areas including in Tanga Region.

“We ask the government to take stern measures, including taking them to the court of law. It is an open fact that the government is losing lots of monies due to sabotage,”.

“It is only through stern punishment that the government will be able stop the sabotage acts and hence improve efficiency of local companies and the revenue collections,” he said.

He explained that the fraudulent importation of consignments containing garments will affect the market of local industries that have invested heavily and employed a local work force.

“Smugglers normally sell their products at a low price and affect the market of local industries. This is because local producers sell at high prices to meet production costs,” said Mr Zuku.

He said such tendency has had a negative impact, whereas in 2000, the country had 17 textile factories but the number has dropped significantly to only eight factories.

These factories are currently operating at 40 to 60 per cent capacity due to lack of markets caused by uneven competition from imported clothing.

He said most of the imported clothes either pay low taxes or are smuggled into the country.

“Smuggling of all clothes, especially vitenge, is due to the excessive profit that the traders gain,” he said.