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12. Incentives for Exporting : What are the special schemes for export promotion initiated by the Government of Tanzania?
The Government has embarked on concerted socio - economic policy and institutional reforms with a view to promoting economic growth. Within this framework various measures are being implemented, which include:
Export tax: The export tax, which has hitherto been charged on export products, and in the process making such products less competitive price-wise has been abolished.
Duty Drawback Scheme: The Duty drawback scheme, which allows for refund of duties paid on raw materials used for export production has been streamlined.
Value Added Tax (VAT): Exports of goods and services from Tanzania are zero rated from VAT. Thus any VAT paid on manufacturing inputs, cost of transport, handling, storage, and loading of export goods can now be claimed.
Export Processing Zones: An act allowing the establishment of Export Processing Zones where, there is a favourable business environment, limited regulatory restrictions and a minimum of red tape was passed by the Parliament in March 2002.
National Road Fund (NRF): Infrastructure is a serious impediment to export success, in order, to address this problem a National Road Fund (from fuel sales levy) has been introduced. The Tanzania Roads Agency (TANROADS), an autonomous agency under the Ministry of Communication and Transport, charged with the overseeing of the trunk and regional road networks receives 70% of this Fund. The remaining 30% is channelled to District councils for maintenance of rural roads.
Agricultural Input Trust Fund (AITF): Agriculture is the main lifeline of the economy. To stimulate performance the government has made major agricultural reforms, which include decontrol of input prices, removal subsidies and duties on inputs etc., As subsidy removals have brought about negative production trends, the Government has created the AITF to provide assistance to brokers of agricultural inputs and, indirectly to farmers. The fund offers concessional rates for agricultural inputs.
Presidential Export Award: The presidential export award is the country’s highest accolade for an exporter, which is awarded annually to recognise and encourage excellence in different disciplines in the field of international trade as well as enhancing export awareness. This award is given to a participant who scores the highest points when all the elements of achievements are added together. Thus the scheme helps to producers compete for excellence.
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