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Issuance of permit to Kenya dairy company...
2008-10-09 13:23:39
By Angel Navuri
Easst African Cooperation minister Diodorus Kamala has expressed grave concern over the decision by the Tanzania Revenue Authority (TRA) to issue a non-inspection permit to a Kenyan dairy company importing processed milk into Tanzania.
It was recently established that the Ruiru-based Brookside Dairy Limited (BDTL) has been taking raw milk from Tanzania for processing in Kenya and then exporting it back to the country for sale in the local market.
The Kenyan firm has a branch in Arusha, where the shady transactions are hatched and perfected.
Dr Kamala told The Guardian in Dar es Salaam yesterday that he has already demanded written explanation from the Treasury and TRA on the suspicious issuance of permit.
I am aware of the export permit, but I know nothing about this one (non-inspection permit)ÖI dont really know the circumstances under which (the Kenyan firm) was granted the permit, he said.
The minister explained that, under the prevailing circumstances, TRA was not supposed to issue such a permit to a foreign firm.
He said he had already advised the tax agency not to issue the firm with another non-inspection permit when the current one expires.
Giving details of the effect of the issuance of the non-inspection permit, Dr Kamala said consignments of packed milk were being brought into the country untaxed, making the government suffer huge revenue losses.
Some months ago, the government expressed grave concern over the exportation of raw milk to Nairobi by the Kenyan firm, which has taken over the operations of the defunct government-owned Tanzania Dairies Limited.
BDTL acquired Tanzania Dairies Arusha plant in 2004, saying it was planning to set up an ultra-high-temperature milk processing line in the northern Tanzania city.
However, for nearly two years now, the company has been merely collecting milk from 2,000 dairy farmers in the northern zone and exported it to Kenya for processing and packaging before importing the finished product back into Tanzania.
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