Revealed: Long delays in tax refund hurt Dutch investors

Arusha. Delay in tax refund is likely to have limited agricultural investments in the northern regions. Those affected include Dutch investors who have invested millions of dollars in horticulture and seed production.

The Netherlands’s ambassador to Tanzania Weibe de Boer wants a quick intervention on the matter.

“Delay in tax refund is the main challenge facing our investors,” he told the seed stakeholders here yesterday.

Currently there are about 20 Dutch firms which have invested in agricultural projects in Arusha and Kilimanjaro regions.

Agricultural investments made by the Dutch companies in the two regions, according to him, are valued at $50 million.

The firms in question have employed over 5,000 people, he said at a meeting hosted by the Tanzania Seed Trade Association (Tasta). “We are delighted by the current trajectory and we will continue to extend our support to Tanzania,” the envoy said.

However, Mr de Boer said the problem facing investors from his country was on taxation and land for lease.

“The delay in tax refund has probably limited agricultural production by the investors”, he said, citing those from his country. Another challenge facing both foreign and local investors is securing ample land for seed production, especially in the northern regions.

The Netherlands is Tanzania’s second largest trade partner in the European Union (EU) with huge investments in agriculture, tourism and logistics, among others. Statistics indicate that the European nation has invested a whopping $1 billion in 170 projects over the past years. It also supported the creation of a horticulture training and research centre at Tengeru near Arusha commonly known as Horti-Tengeru.

The Dutch support also led to the founding of Taha Group, an Arusha-based advocacy group for horticulture producers, processors and exporters in 2004.