TANZANIA – Tanzania Breweries Limited (TBL), the country’s oldest and largest brewing company has announced intentions to shift its headquarters from Dar es Salaam to Dodoma where it plans to construct the country’s biggest plant worth US$109.51mn, reports Daily News.
Construction of the new brewery is expected to begin 2020 to be completed in two years’ time.
According to the company, the new brewery is expected to fetch the government US$43.8mn in Value Added Tax (VAT) and Excise Tax while benefiting local farmers and residents.
The facility is targeted to consume farmers and residents on an annual basis, with a possibility of creating over 600 jobs.
Speaking to the Parliamentary Committee on Industry, Trade and Environment on a tour to its facilities, the company said land on which the facility will be constructed has already been toured and only paper work remain to be completed.
Commenting on the move, Industry, Trade and Investment Deputy Minister Stella Manyanya said: “We will be glad to see you set up the industry even tomorrow and we will be ready to assist you.”
Costly E-tax stamps (ETS) deal
The government proposed to introduce electronic tax stamps set to replace the paper stamps currently used aimed at fighting illegal production of liquors or those that could reach the market in a devious manner.
The ETS is the data recording machines installed at the production facility for marking tax compliance right from the manufacturing process.
While some expressed their confidence in the new tax system, the move received opposition from manufacturers of beer, spirits, soft drinks and water who cautioned casualties with the system including additional costs.
The company on the other hand, has called on the government to drop the ETS system with the Tanzania Telecommunications Company Limited (TTCL) in the next two or three years.
“For beer production, we can’t cheat because there is a machine to stamp each bottle to show when produced, I think the TRA can use it to get the data,” said TBL Brewery Operations Director, Waziri Jemedari.
TBL said the current management system had resulted to higher production costs, high product prices consequently leading to fall in sales and revenues.
According to Waziri Jemedari, the company has to pay US$12.08 million to the company owning the ETS system which was tendered by the Tanzania Revenue Authority (TRA) in the year 2018/19.