Ministry drops 10 levies on milk, meat

Dodoma. The government is scrapping off 10 different fees and charges on milk production, transportation and marketing, as well as on meat and fish products as its seeks to boost investment in the sector.

This was one of the measures announced yesterday during the tabling of the budget for the Ministry of Livestock and Fisheries Development.

The ministry says the relief should be able to stimulate local production and processing of milk and meat products.

In October 2018, the government raised milk import fees 13-fold in a deliberate move to stimulate local processing to cut on Sh30 billion dairy products import bill.

The import fees rose from Sh150 to Sh2,000 per litre, a move which has boosted sales by local companies but that have since struggled to meet consumption demand for a competitive price. Tanzania milk production capacity stands at about 150,000 litres a day against an installed capacity of 750,000 litres.

Requesting for Sh64.91 billion budget for the financial year 2019/20, the minister for Livestock and Fisheries Development, Mr Luhaga Mpina, said more levies would be dropped in the coming year.

The dropped costs include those associated with permits for transporting milk below 51 litres at a go and registration of collection centres that handle up to 201 litres of milk.

The list also includes registration fees for people who can produce only 51 litres of milk per day as well as registration of distributors for ingredients that are used in milk production. Also lined up for scrapping is the registration fee for the keeping of animal meat at small, medium and large scales.

Supervisors for animal auctions - ranked as primary and secondary as well as those located in border areas - will also have their registration fees scrapped. Similarly, even the registration fees for the auctions themselves will be dropped. This also applies to workers for the aforementioned auctions.

The government will also scrap registration fees for business people who export meat from Tanzania. Fees associated with transporting chicken in and outside the country will also be scrapped.

According to Mr Mpina, his ministry will work hard to strengthen infrastructures, promote the business of fisheries products, enhance the acquisition of fish fingerlings, counter climate change and improve studies, extension services and fisheries training during the financial year.

“Other priorities include closing the loopholes for losses of government revenue from the fisheries sector and stepping up supervision, controlling and the sustaining the use of fisheries resources and conserving the environment,” he said.