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Regions
Moshi Economy On Verge of Collapse
Posted: Sunday November 30, 2008 1:55 PM BT
Arusha - What used to be prime factories in Moshi are now closed down thus adversely affecting revenue collection by the government. When Arusha is standing tall for having collected revenue totaling Tshs 102 billion during 2007/08, an indication of a booming economy, its next door neighbour Kilimanjaro only managed to collect Sh. 46.4 bn during that period and is in dire straits.
![]() Moshi Town, Situated on the southeastern slopes of Kilimanjaro, the small town of Moshi is full of hiker hotels that cater to tourism in Kilimanjaro National Park
![]() Moshi Town Centre
![]() A door to the coffee curing factory in Moshi
Arusha's achievement was cause for celebration when marking this year's Tax Payer's Day which climaxed at the Sheikh Amri Abeid stadium on November 24. But as Arusha's economy is booming Kilimanjaro's is on decline. Dwindling industrial and agricultural production as well as low investment flows have stagnated revenue collection in Kilimanjaro region, sometimes far below the set targets. The region, once the economic powerhouse of the northern zone regions, attracts many tourists majority of them being mountain climbers but most of the revenue goes to tour firms and hoteliers in neighbouring Arusha. Mrs. Patience Minga, the regional manager for the Tanzania Revenue Authority says that only three factories were operating fully in Moshi unlike nearly a dozen in the past. Commercial farming, which made the region an important agricultural zone in the country in the past, has also declined with the fall of coffee prices in world markets. She told reporters in Moshi last week during the climax of the Tax Payers' Day that only something akin to a "Marshall Plan" can make Kilimanjaro regain its lost glory in businesses and make it compete effectively with its neighbour. That would include reviving the closed industries as well as strengthening other strategic economic sectors such as tourism, construction and diversifying agriculture instead of dependence on coffee as the main cash crop. Industries which used to generate much revenue to the government and employment in Moshi and which have since closed include the Kibo Breweries, Tanzania Bag Corporation, Moshi Textile Mills, Kibo Paper Limited, a coffee curing factory and several others. All of them have closed or operating at on-off-on basis. Industrial plants still in full swing are Kibo Match Corporation, Bonite Bottling Plant and TPC Limited. The latter two, however, pay their taxes at TRA headquarters in Dar es Salaam. Established in the 1940s, TPC is the oldest sugar processing plant in the country According to Mrs. Minga, TRA collected Sh. 36.4billion as revenue for 2006/2007. The amount accounted for 86 per cent of the target of Sh. 42.2bn or nearly Sh. 6bn below the set target. During the period, Arusha region collected 75.5bn. In 2007/2008,some Sh. 46.4bn was earned by TRA in Kilimanjaro but still Sh. 3bn below the projected target of Sh. 49.7bn. Arusha during the period collected Tsh. 102bn more than double of Kilimanjaro region. The TRA manager denied that the region could not collect enough revenue because the set targets were higher. "Currently Kilimanjaro does not have a strong industrial base. We rely on traders who are merely dukawalas, unlike big corporate firms in Arusha," she said. She said some business people in the region, especially hoteliers and those in real estate, were shifting their businesses to Arusha where the demand is high. As Moshi counts losses businessmen in Arusha are progressively registering windfall profits. TRA on November 24 recognised examplary tax payers of Arusha at the Sheikh Amri Abeid Stadium. The guest of honour was Arusha's District Commissioner, Evans Balama. She challenged the government authorities and the private sector to create more conducive environment which can attract more investors to the region which has one of the leading tourist attractions in the country; Mt. Kilimanjaro. Most of the foregin visitors to the mountain and other tourist attractions in the region were accommodated in Arusha or handled by tour firms based there, making the accommodation facilities in Moshi and tour operators to reap little compared with their counterparts in Arusha. Kilimanjaro region also does not have any hunting company despite its wildlife resources as most of the firms are concentrated in Arusha or Dar es Salaam. Revenue collection at the Tarakea and Holili border posts is also reported to have declined due to several factors. This is not the case with Namanga which continues to register booming business. Relevant Links However, the regional TRA boss says Kilimanjaro can still increase its revenue collections above the current levels with strict auditing of coffee exporters, plugging the loopholes by tax evaders, especially the traders and increase in the number of private educational institutions. Her remarks were echoed by Mr. Patrick Boisafi, the regional chairperson of the Tanzania Chamber of Commerce. Industry and Agriculture (TCCIA) who said there were still many tax evaders in the region. Additional reporting by Happy Lazaro Source: https://www.arushatimes.co.tz
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