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Tanzania mulls over increasing export levy on raw hides

DAR ES SALAAM, Tanzania, Feb 12 – Tanzanian President John Magufuli on Friday ordered the Ministry of Industry and Trade (MIT) to review the current 80 percent export levy imposed on raw hides and skins with a view to raising it to 100 percent to protect local leather manufacturers.

Magufuli also directed the ministry to see how it can exempt local leather industries from paying import levy on chemicals used to process leather products.

Magufuli was speaking shortly after he had launched a 50 billion Tanzanian shillings (about 21.5 million U.S. dollars) private-owned leather industry in Morogoro region where he was told that exports of raw hides and skins were denying local industries’ access to required raw materials.

“Our focus should be to create conducive investment environment for both local and foreign investors,” he said in his statement televised by state-run Tanzania Broadcasting Corporation.

Rostam Aziz, the chairman of the Board of Directors for the newly launched Ace Leather Tanzania Limited said when the company attains full production by the end of 2022, it will be able to process 6,000 cowhides a day.

According to the Ministry of Livestock and Fisheries, Tanzania currently has 33.4 million head of cattle, 21.29 million goats and 5.65 million sheep.

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