Billions lost to ‘viroba’ racket, says Makamba
Minister of State in the Vice President’s Office (Union Affairs and Environment), Mr January Makamba, speaks at a press conference in Dar es Salaam yesterday about the ban on packaging of alcoholic drinks in sachets, popularly know in Kiswahili as viroba. With him is Director of Environment Richard Muyungi. PHOTO | SALIM SHAO
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The Minister of State in Vice President’s Office (Union and Environment), Mr January Makamba, said this yesterday when briefing journalists on Prime Minister Kassim Majaliwa’s directive that viroba packaging would be outlawed effective March.
Dar es Salaam. A total of Sh600 billion in revenue is lost annually through tax evasion on spirits packaged in plastic sachets, popularly known as viroba.
The Minister of State in Vice President’s Office (Union and Environment), Mr January Makamba, said this yesterday when briefing journalists on Prime Minister Kassim Majaliwa’s directive that viroba packaging would be outlawed effective March.
Mr Makamba said the revenue evasion was being influenced by the simplicity of technology and low cost entailing the production of the sachets.
“There are all kinds of people who produce viroba in backyards, people who have no idea about quality standards and suitability to consumers’ health and then sell the stuff without paying any tax,” said the minister.
He explained that the the government aims to ensure there’re no tax evasion in the liquor business as well as ensuring environmental cleanness and controlling the consumption of the liquor since with viroba, even children get access to them.
Mr Makamba further saying currently, his office is preparing regulations that will control the production of alcohol packaging that demands the drink is availed in bottles that can be recycled and which must be above 250ml.
The new regulations will also provide penalties for those who fail to comply with the order on viroba.
The minister further explained that doors are open for the liquor businessmen who need extra time to switch to the new technology to apply for a grace period before February 28.
The application will require approval letters from Tanzania Revenue Authority (TRA) showing their revenue payments in the past three years, Tanzania Food and Drugs Authority (TFDA) and Tanzania Bureau of Standards (TBS).
Others include getting a letter from Brela and an environment impact assessment report and submit them to the minister’s office. Commenting on the implementation banning of plastic bags Mr Makamba said his office is in talks with different stakeholders to discus the best ways to replace the sachets.
