ASAS CRY FOUL OVER HIGH RATES OF TAX

Minister for Livestock Development and Fisheries, Dr. Titus Kamani (centre) walks through the Asas Dairies Ltd milk factory during his tour recently in Iringa Region. On the extreme left is the Director of ASAS Group of Companies, Salim Abri. (Photo: Friday Simbaya) 

By Friday Simbaya, Iringa

The Director of ASAS Group of Companies, Salim Abri has urged the government to remove value added tax (VAT) on dairy products that include butter, cheese, butter, cream and milk with fruit flavor.

Salim made the cry to the Minister for Livestock Development and Fisheries, Dr. Titus Kamani in the visit to the milk processing factory of ASAS DAIRIES LTD based in Iringa town, Iringa Region through the project East Africa Dairy Development (EADD II).

He said that the elimination of such taxes will not affect too much government revenue because processing industry of milk is still in its infancy.

He said that tax rates are higher in comparison with the production capacity of the processing plant.

"Overall the entire tax system is hampering the success of the dairy industry in the country," Salim lamented.

He said dairy products from abroad, are sold for a small price compared with milk products that are processed in the country.

This restricts from the fact that the tax base in the country is enormous compared to other countries, "added the director.

He said that the factory has not reached the level of production and currently it produces 12,000 liters per day and the main reason behind is that many citizens lack the habit of drinking milk together with high rates of tax as well as VAT.

The East Africa Dairy Development through Heifer International is a five-year project (2013-2018) implemented the second phase in Kenya, Uganda and Tanzania using a hub system of milk (Dairy Hub).

In Tanzania, the project is being implemented in the regions of Mbeya, Iringa and Njombe, for the sustainable livelihoods for one million people in Uganda, Kenya and Tanzania.

Heifer International is a non-profit, non-governmental, humanitarian organization dedicated to ending world hunger and caring for the earth by providing livestock, tress, training and other related resources to help poor families around the globe become self-reliant.