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Food prices soar, despite Z’bar govt tax relief
2006-09-22 09:08:39
By Mwinyi Sadallah, Zanzibar
Consumers in Zanzibar have expressed disappointment at the government’s recent reduction of import duty on foodstuffs by 25 per cent.
Interviewed, residents said the tax relief would only benefit importers and not consumers.
However, responding to the complaints, Zanzibar Minister for Tourism, Trade and Investment, Samia Suluhu Hassan said yesterday the rise in consumer prices was triggered by the recent implementation of the EAC Customs Union protocols, which came into effect this month.
In a Press release signed by the minister, the Zanzibar government complained that the new duty regime had triggered a sharp escalation in consumer prices.
The statement said the new taxes, which came into effect on the Isles this month, had precipitated a dramatic rise in prices of basic consumer goods.
Suluhu directed food importers on Monday to reduce retail prices by 10 per cent in tandem with reduced import duty during the holy month of Ramadhan.
Residents, however, expressed anger that the new changes in import duty were tailored to benefit importers only.
Abdulrahman Masoud of Mkunazini said the government’s decision would be celebrated by the businessmen, but hurt consumers at end of the supply chain.
’’After the announcement, we thought consumer prices would go down by 15 per cent. However, the opposite is the case. Prices are higher than ever,’’ Abdulrahman said.
Kombo Shaame, a resident of Kwamtipura, said that previously rice sold at 500 per kilogramme, but after the import duty reduction it is now costing 600/-
’’A kilogramme of sugar was initially going for between 900/- and 1,000/-, but it is now selling at 1,050/- It seems the government\’s decision was more of political gimmick than relief to consumers,’’ Shaame said.
He said wheat flour was previously sold at 500/- but currently selling 600/- per kilogramme.
CHADEMA deputy-general secretary of Hamad Mussa Yussuf said the government should have conducted a study before making decision that only served to create confusion and problems.
’’I would like to request the government of Zanzibar to apologise for misleading the public that it had reduced consumer prices of foodstuffs,’’ Yussuf said.
He said the government was shocked by the new tax rates to an extent that it was compelled to intervene to save consumers from the high cost of living.
He said they had also been compelled to negotiate with the business community to lower retain prices by between five and percent for the same purpose of reducing the impact of the rising cost of living on the Isles.
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