Port considers scrapping VAT on transit goods

The Tanzanian government
has drawn up a strategy to
attract new customers to the
Port of Dar es Salaam in the
wake of what it calls a “steep
decline” in cargo traffic.
This includes dropping the
18% value-added tax (VAT)
on transit goods.
According to
the Tanzania Ports Authority
(TPA), cargo traffic through
the port dropped by 13.3%
in March compared to the
same period last year.
The TPA highlighted
further that cargo to and
from the Democratic
Republic of Congo (DRC)
and Zambia had dropped by
14.4% and 27.9%. The two
countries contribute around
60% of the port’s transit
market share.
According to TradeMark
East Africa, port
stakeholders – which
include the Tanzania
Freight Forwarders'
Association and
the Tanzania Shipping
Agents' Association – blame
the imposition of 18%
value-added tax (VAT) on
auxiliary services rendered
for transit goods in July
last year.
TPA has promised to
address the VAT issue with
“higher authorities”.
CAPTION
The Port of Dar es Salaam.