Govt cuts tax on fuel through Tanzania
Sep 18, 2011
THE Government has announced a tax discount on fuel imports passing through the Tanzanian port of Dar es Salaam.
By Raymond Baguma
THE Government has announced a tax discount on fuel imports passing through the Tanzanian port of Dar es Salaam.
Information and national guidance minister Mary Karooro Okurut told journalists at the media centre on Wednesday that a Cabinet meeting had authorised the minister of finance to introduce a tax rebate of sh150 per litre to any oil company which uses the Tanzanian route.
“The Government would like to develop the southern route through Tanzania because many times there are problems on the Mombasa route such as congestion,†she explained.
The Cabinet, she added, had directed the minister of transport to expedite short term plans to improve the transportation of petroleum products between Dar es Salaam and Uganda.
Peter Ochieng, the Kobil Uganda operations and marketing manager, said this was a good move by the Government to reduce on the over reliance of the Kenyan route for fuel imports.
“For some time, we have been using the Tanzania route but it was not making economic sense because of the transportation costs. But with this rebate, we are going to evaluate and see whether it is economical,†Ochieng said.
Karooro said the Cabinet had also approved revisions on rates payable for mineral fees, rent and royalties, regarding the sharing of mineral proceeds for local government authorities.
Under the current Mining Act of 2003, mineral royalties are shared with the Government taking 80%, local governments 17% and land owners taking 3% in royalties.
“There have been problems at the local government level. Now district councils will get 10% and sub-counties will get 7%,†Karooro said.
She added that the Mining Act of 2003 would be amended to reflect the change.
THE Government has announced a tax discount on fuel imports passing through the Tanzanian port of Dar es Salaam.
Information and national guidance minister Mary Karooro Okurut told journalists at the media centre on Wednesday that a Cabinet meeting had authorised the minister of finance to introduce a tax rebate of sh150 per litre to any oil company which uses the Tanzanian route.
“The Government would like to develop the southern route through Tanzania because many times there are problems on the Mombasa route such as congestion,†she explained.
The Cabinet, she added, had directed the minister of transport to expedite short term plans to improve the transportation of petroleum products between Dar es Salaam and Uganda.
Peter Ochieng, the Kobil Uganda operations and marketing manager, said this was a good move by the Government to reduce on the over reliance of the Kenyan route for fuel imports.
“For some time, we have been using the Tanzania route but it was not making economic sense because of the transportation costs. But with this rebate, we are going to evaluate and see whether it is economical,†Ochieng said.
Karooro said the Cabinet had also approved revisions on rates payable for mineral fees, rent and royalties, regarding the sharing of mineral proceeds for local government authorities.
Under the current Mining Act of 2003, mineral royalties are shared with the Government taking 80%, local governments 17% and land owners taking 3% in royalties.
“There have been problems at the local government level. Now district councils will get 10% and sub-counties will get 7%,†Karooro said.
She added that the Mining Act of 2003 would be amended to reflect the change.