Government to scrap tax exemption on newsprint

(MISA/IFEX) – The government of Tanzania has recommended to Parliament that the import tax exemption on newsprint granted in 1997 be abolished. The move is expected to have a heavy toll on Tanzania’s burgeoning newspaper industry, which in recent years has flourished almost unhindered. Unveiling the Government Budget speech for the 1998/99 financial year in […]

(MISA/IFEX) – The government of Tanzania has recommended to Parliament that
the
import tax exemption on newsprint granted in 1997 be abolished. The move is
expected to have a heavy toll on Tanzania’s burgeoning newspaper industry,
which in recent years has flourished almost unhindered.

Unveiling the Government Budget speech for the 1998/99 financial year in
Dodoma on 11 June 1998, Finance Minister Daniel Yona said, “It is
recommended that the import tax exemption that was granted on newsprint…be
abolished.This measure is being taken in the light of the assessment to the
effect that the newspaper industry is now strong enough to stand on its feet
through competition”.

Media house editors have expressed resentment about the abolishment of the
import tax exemption, saying the decision would impair democracy, education
and information. The deputy managing editor of the government-owned “Daily
News”, Wilson Kaigarula, said, “The changing mood (by the government) has
perhaps been generated by the vibrancy of the press.” He added that the
proliferation of newspapers created an impression that this was now a very
lucrative commercial sector. Kaigarula added that the move would act as a
disincentive for readers who would fail to absorb increased cover prices in
their already weak budgets.

Media executives quoted in the “Daily News” on 12 June all described the
decision as improper and urged that it be scrapped. A spokesperson for the
IPP Media Group, the largest private media group in Tanzania, said, “by
taxing newsprint you are making this a luxury item not affordable common
folk, when in fact it is a necessity”. He said that to abolish the tax
exemption meant that only a privileged few would enjoy reading papers and
continue to be well informed, while the rest of society, including the
education sector, would suffer.

The managing editor of Habari Corporation Limited, Salva Rweyemamu,
expressed his fear that the move was aimed at punishing the media for what
he referred to as a breach of goodwill the government had given to the
press. Rweyemamu told the “Daily News”, “But the reasons for which tax was
exempted on newsprint, including the improvement of the education sector and
boosting the reading habit at a cheaper rate, are still there and
should never be ignored.” He also pointed out that ever since the Third
Phase Government [The Third Government is under President Benjamin Mkapa,
the Second Phase was under former President Ali Hassan Mwinyi, and the
First Phase Government was under Former President Julius Nyerere] swept into
power, its budgets have been
revenue oriented rather than development oriented.

Two other Kiswahili daily tabloids, “Uhuru” and “Majira”, said the
government’s decision defeated the whole spirit of democracy, and freedom of
information.

“The decision is saddening because we believe it will contribute to
Tanzanians’ inability to educate themselves by reading books, and
newspapers”, “Uhuru” said in its editorial. The editorial also expressed the
hope that the government would review the decision closely and upon
appreciating its importance have a concession if not a total waiver of the
tax on newsprint.

Recommended Action

His Excellency Benjamin Mkapa

The President of the United Republic of Tanzania

PO Box 9120

Dar es Salaam, Tanzania

Tel: +255 51 116900/2

Fax: +255 51 113425

Hon. Daniel Yona

Minister of Finance of the United Republic of Tanzania

Box 9111

Dar es Salaam,Tanzania

Tel: +255 51 117790

Fax: +255 51 117790/0326