Tanzania transporters troubled by new tax

Tanzania transporters troubled by new tax

MEMBERS of The Tanzania Truck Owners Association (TATOA) have expressed concern over the newly introduced law regarding the taxation of road transporters that requires them to pay between 180, 000/- to 2.79m/- per truck based on its capacity. 

A press statement released by TATOA which its members own more than 22,000 trucks transporting about 90 per cent of port freights, said that such a dreadful fixed advance tax, which was introduced in the Finance Act 2022 and is supposed to be enforced by this month would be a burden to transporters in the country and hence, make them less competitive.

“This advance tax is to be paid at the beginning of the tax year before they make any profits, which places a high tax burden on transporters. It also ignores the benefit of planned existing investments which allows transporter depreciation allowance as well as disregarding the basic principle of taxation, being on actual profits rather than assets owned,” the statement released yesterday reads in part.

It goes on to say that enforcing this law if passed and implemented will undoubtedly push a lot of transporters out of business as they will be unable to afford the advance tax and hence negatively impact the logistics sector due to the lack of trucks or even a trigger for inflation if transporters are forced to hike their prices to ensure business sustainability.

TATOA recalls the Finance Bill of June 2022 that suggested a fixed presumptive tax at the rate of 3.5m/- per annum which would apply to individual transporters whose turnover does not exceed 100m/- and that the applicability would be voluntary.

“Surprisingly Section 65T of the Finance Act 2022 was published with changes which widened the net to all transporters by road contrary to the Bill, by substituting the term individual with the person.

Also, the maximum revenue threshold of 100m/- was removed and the Act provided for progressive taxation based on load capacity ranging from 180,000/- to 2.79m/-,”

The press statement goes on to quantify that with this legal provision, a transporter with 400 trucks has to pay an advance tax of 1,11tri/- even before doing any business and realizing any profits.

“This is rather unrealistic as it implies that the business is expected to generate a profit of at least 3.7bn/-, which practically is not possible based on historical industry average data and business dynamics,”

Source: allafrica.com

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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit
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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit

Dar es Salaam — Tanzania’s President Samia Suluhu Hassan has declared an outbreak of Marburg virus, confirming a single case in the northwestern region of Kagera after a meeting with WHO director-general Tedros Adhanom Ghebreyesus.

The confirmation follows days of speculation about a possible outbreak in the region, after the WHO reported a number of deaths suspected to be linked to the highly infectious disease.

While Tanzania’s Ministry of Health declared last week that all suspected cases had tested negative for Marburg, the WHO called for additional testing at international reference laboratories.

“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”Amelia Clemence, public health researcher

Subsequent laboratory tests conducted at Kagera’s Kabaile Mobile Laboratory and confirmed in Dar es Salaam identified one positive case, while 25 other suspected cases tested negative, the president told a press conference in Dodoma, in the east of the country today (Monday).

“The epicentre has now shifted to Biharamulo district of Kagera,” she told the press conference, distinguishing this outbreak from the previous one centred in Bukoba district.

Tedros said the WHO would release US$3 million from its emergencies contingency fund to support efforts to contain the outbreak.

Health authorities stepped up surveillance and deployed emergency response teams after the WHO raised the alarm about nine suspected cases in the region, including eight deaths.

The suspected cases displayed symptoms consistent with Marburg infection, including headache, high fever, diarrhoea, and haemorrhagic complications, according to the WHO’s alert to member countries on 14 January. The organisation noted a case fatality rate of 89 per cent among the suspected cases.

“We appreciate the swift attention accorded by the WHO,” Hassan said.

She said her administration immediately investigated the WHO’s alert.

“The government took several measures, including the investigation of suspected individuals and the deployment of emergency response teams,” she added.

Cross-border transmission

The emergence of this case in a region that experienced Tanzania’s first-ever Marburg outbreak in March 2023 has raised concerns about cross-border transmission, particularly following Rwanda’s recent outbreak that infected 66 people and killed 15 before being declared over in December 2024.

The situation is particularly critical given Kagera’s position as a transport hub connecting four East African nations.

Amelia Clemence, a public health researcher working in the region, says constant vigilance is required.

“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”

The Kagera region’s ecosystem, home to fruit bats that serve as natural reservoirs for the Marburg virus, adds another layer of complexity to disease surveillance efforts.

The virus, closely related to Ebola, spreads through contact with bodily fluids and can cause severe haemorrhagic fever.

Transparency urged

Elizabeth Sanga, shadow minister of health for Tanzania’s ACT Wazalendo opposition party, says greater transparency would help guide public health measures.

“This could have helped to guide those who are traveling to the affected region to be more vigilant and prevent the risk of further spread,” she said.

WHO regional director for Africa Matshidiso Moeti says early notification of investigation outcomes is important.

“We stand ready to support the government in its efforts to investigate and ensure that measures are in place for an effective and rapid response,” she said, noting that existing national capacities built from previous health emergencies could be quickly mobilised.

The situation coincides with leadership changes in Tanzania’s Ministry of Health, with both the chief medical officer and permanent secretary being replaced.

This piece was produced by SciDev.Net’s Sub-Saharan Africa English desk.

Source: allafrica.com

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