Tanzania, April 26 – Tanzania President John Magufuli has vowed to review the hefty and cumbersome taxes implicated on the grape growers following the decline of the crop’s demand in the market. The burdensome taxes have hiked the prices of the commodities shying off potential consumers from promoting the cash crop growers. This has worried the President who has pledged to put the matter into considerations and ensure there are measures to suit the farmers to benefit from their hard work and labor.
The repercussion of the market towards the crop due to the hefty taxes has caused loss of revenue and closure of businesses as the stock continues to pile up without an outflow to the consumers. This has frustrated the grape growers as they count their losses financially. It is understood that a number of tonnes of grapes have gone into waste owing to the inability of the market to dig deeper into their pockets to purchase the crop.
Moreover, the gap in the market is likely to widen and the crop could lose a larger market in the future due to the taxes and lack of market. There have been other industries that have been affected by the tax issues considerably to be slightly high. The fishing sector has been a victim of the same and fishers have voiced out their concerns to the government.
Earlier in the year, President Magufuli promised to cut down taxes to lure investors into starting up businesses in the country and ease the cost of doing business in Tanzania for the citizens as well. Traders expressed their ‘anger’ towards the leadership of the President who had promised to make a change in the business environment to the economic outlook of the country seeking to gain stability and achieve a competitive grip in the regional market.