Zanzibar President, Hussein Ali Mwinyi, has declared the withdrawal of Value Added Tax (VAT) on sugar imports during the holy month of Ramadan, urging traders to refrain from price hikes.
The President emphasized the government’s commitment to controlling inflation and called for cooperation from traders.
“We have decided to slash the VAT on sugar imports, therefore there should be no excuse for importers and retailers to sell sugar at high prices,” stated President Mwinyi, addressing concerns about potential price increases during Ramadan.
He emphasized that the government is implementing measures to combat inflation, and urged traders to act responsibly.
The President expressed displeasure over dishonest traders increasing prices, even on locally produced items like cassava, fish, vegetables, fruits, and bananas.
He urged traders to avoid unnecessary price hikes during Ramadan, highlighting that there is no justification for such increases, especially during the holy month when many Muslims observe fasting.
President Mwinyi warned traders against unjustified price increases, especially for commodities like cassava, bananas, and fruits, which are relatively tax-free. He assured that the government would work to reduce business costs and obstacles to encourage traders to lower prices for end users.
Traders found selling sugar at prices higher than the indicative price set after the VAT withdrawal will face consequences, including the risk of having their licenses revoked, the President warned.
Additionally, he expressed concerns about the state of the Malindi fish market and announced the formation of a committee to ensure proper management.
Meanhwile, the Sugar Board of Tanzania (SBT) apprehended about 14 retailers for hiking sugar prices.
James Mwera, an SBT Officer, reported that some retailers were selling a 25-kilogram bag of sugar at Tsh125,000 (US$49.05) instead of Tsh 70,000 (US$27.47), emphasizing the need for fair pricing.
Meanwhile, sugar factories in the country are gradually returning to normal production levels after facing disruptions due to prolonged heavy rainfall.
