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No more tax exemptions - JK
2006-07-10 08:59:41
By Novatus Makunga, PST, Arusha
President Jakaya Kikwete has warned that his government would no longer tolerate appeals for tax exemptions, saying that entertaining these requests affected the country’s revenue.
He cautioned that from now on, government leaders inspecting development activities, would not receive or consider any appeal for tax waivers from producers.
The President was speaking at the weekend during his official tour of Arusha Region, where, among other things, he visited and inspected construction works of Vector Health International, a mosquito net factory.
The factory which is still under construction is located in Arumeru District and is under the umbrella of the Economic Preferential Zone (EPZ).
’Government activities depend on revenue from taxes. If every industry appeals for tax exemption and is granted, things will be very difficult. Let’s forget about the idea of tax exemptions,’ he advised.
He reminded that industries are bound to pay all the taxes, adding that those operating under EPZ are also supposed to start paying taxes when the period of tax holiday is over because they are making profit and deemed to run commercially.
’If your workers are being taxed on their salaries, how come you the producers making millions always appeal for tax exemption?’ queried President Kikwete.
He cautioned local producers seeking special consideration or some relief against fellow businesspersons, saying that things might become very stiff for them in a few years to come, when the country would become entirely part of the global village.
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