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Mengi hails govt for keen stance on environment
2006-06-25 10:04:14
By Hannah Mwandoloma
The IPP Executive Chairman, Reginald Mengi, has
hailed the Government for its concerted determination to curb wanton degradation of the environment, stressing that proper management of the resource was vital for facilitating sustainable economic development.
The sentiments were some of the highlights Mengi delivered as guest of honour at the private Perspective of the 2006/07 post-seminar budget in Dar es Salaam on Friday.
He told the participants that businesses should flourish in a cleaner environment, pointing out that the present generation was obliged to protect the environment for future generations.
’’The removal of excise duty on Kerosene and VAT on Liquefied Petroleum Gas and gas cylinders will encourage use of gas for cooking and so the use of charcoal and firewood will be reduced hence trees will be saved,’’Mengi said.
He said that imposition of an excise duty of 20 per cent on imported used non utility motor vehicles aged 10 years or more will reduce air pollution and importation of spares. This, he noted, would spare Tanzania the inconvenience of becoming a junk yard.
Mengi further said that a national budget should send out positive signals to the business community and address issues that stimulate economic growth, enhance competitiveness, promote better tax administration and improve business regulations.
The IPP boss remarked: ’’This is the business expectations, and to a large extent, this year’s budget has addressed some of these issues and it also appears to meet people’s expectations, as it is pro-poor and pro-business.
I’m of the view that if all these measures are implemented, the real GDP Growth rate estimated for 2007 will be realized,’’ he said.
Mengi also reminded the government that the success of the budget will depend on its implementation, adding that it should spend on what has been targeted and must avoid unnecessary waste of resources, over-expenditure and misuse of public funds in order to focus resources on what is necessary.
He commented that there are areas of the budget that have negative implications on business because some sectors of the business community have been affected by the changes in the tariff structure of the inputs while others are of the view that not enough has been done to support their sectors.
’’All implications are being compiled and will be communicated to the Minister of Finance, Zakhia Meghji, and the business community is confident that she will look into the issues and take appropriate corrective measures,’’ he told the audience.
Other issues which were raised in the seminar by other participants as negative implications of the latest budget include plastic bags, petrol and also the education sector as far as ICT is concerned.
Hirji Abdallah, the PKF tax consultant said that Tanzania pays dearly for petrol because of buying white petrol. He said should the government opt for buying crude oil the nation will get additional advantages, such as tarmac, as well as facilitating a drop in the prices of petrol.
Abdallah also expressed worry over excise duty on plastic bags since those who are employed in the recycling industries will be rendered jobless, since the prices will be too high and people will not use the products.
Responding to plastic bags’ excise duty, Mengi said that efforts have been made to protect the environment from plastic bags, but increasing the excise duty turned out to be the easier way out.
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