Resolve oil row, Ndugai orders

For the past few days there has been an increasing uneasiness in the market as the country has been hit by another shortage of cooking oil which suppliers blame government institutions. Two oil tankers have been denied entry and remains at the port over failure by the custom officers to charge import tax for two weeks now.

The Tanzania Revenue Authority (TRA), the Office of the Chief Government Chemist and the Tanzania Bureau of Standards (TBS) have failed to reach consensus on the specific type of oil cargo the tankers were carrying.

While TRA maintains the tankers are carrying semi-refined oil, laboratory examinations results from the office of the chief government chemist and the TBS indicate the oil imported is crude. About 70 per cent of the cooking oil used in the country is imported.

Tanzania’s capacity to produce oil from sunflower, sesame, cotton and ground nuts meet only 30 per cent of the local demand.

Minister in charge of Trade, Industries and Investment Mr Charles Mwijage says a large part of the oil produced comes from sunflower which has a large market in Europe especially Sweden. “In order to protect our local industries we adopted a 10 per cent import fee for crude oil.

This is unlike in Kenya where the import charge remains zero,” he said.

According to the Minister there are 40,000 tonnes of edible oil at the Dar es Salaam port and discussion were going on between his team from the ministry as well as those from the revenue authority.

“I can confirm that I will deliver the feedback this evening (yesterday),” he said noting that he had already advised the authorities to allow 50 per cent of the consignment to be charged as crude pending talks with the importers.But the concerned National Assembly Speaker said it was disturbing that the authorities had failed to decide the matter.

“Understanding what is crude oil or not does not need rocket science. As a chemist it takes less than 15 minutes to understand what should be charged on the imported oil,” he said. “This is not correct.

If TRA does not believe sample test from the chief chemist and TBS therefore a sample should be flown to SOUTH Africa or UK to determine the authenticity of the cargo,” he noted. The Assembly speaker directed the Minister in charge of Trade, Industries and Investment to squarely address the matter before the sun goes to bed Tuesday.

A report from the Chairman of the Parliamentary Committee on Industries, Trade and Environment Mr Suleiman Murad blamed the Tanzania Revenue Authority for slowing the matter to worse.

A spot survey by ‘Daily News’ established retail price for a 20-litre cooking oil had skyrocketed from 50,000/- to over 70,000/- in Dar es Salaam and Dodoma.

Mr Ndugai told the parliamentarians that such dispute had a huge toll on taxpayers and that all waiting charges will be carried by the last consumer.

Source: Daily News

• 529