DR. MPANGO: TAX COLLECTION NOT BEHIND BUSINESS CLOSURE

Minister for Finance and Planning, Dr. Philip Mpango.

Minister for Finance and Planning, Dr Philip Mpango has refuted reports that tax collection was behind closure of some businesses and decrease of tenants in various buildings.

However, the Minister said that after making a follow up, his office realized that some traders have been closing businesses but it was difficult to know the reasons behind their move.

Dr Mpango was speaking to reporters recently on country’s state of economy between July and December 2016. He said between August and October 2016, a total of 1,076 businesses were closed in Ilala District, 443 in Kinondoni and 222 in Temeke while in Arusha a total of 131 businesses were closed. According to Dr Mpango, most of business that were closed were in the construction sector, whole and retails businesses as well as transportation services.

“We have made a follow up on the reports that some traders have been closing businesses, it is true to some extent because there are some businesses, which have been closed between July and December 2016,” said Dr Mpango.

However, the Minister said the government has failed to identify reasons behind the closure of the businesses and that it was difficult and unprofessional to associate the move with tax collection.

“There could be many reasons behind closure of businesses, some traders may have failed to import goods because they could pay required tax, failure to be paid or to pay debts, failure to manage businesses, high business running costs, change of businesses and many others,” he said.

He added that some businesses have collapsed due to the increase of market competition and better services. On the failure to pay rent, Dr Mpango said there has been an increase of competition in the housing sector due to the increase of houses, which are being constructed by pension funds and various organizations.

According to Dr Mpango, PPF owns a total of 15 buildings across the country and by December 14, 2016 at least seven buildings were 100 percent occupied by tenants.

He mentioned other PPF buildings such as the new PPF Plaza in Arusha, which was officially opened in March, 2016 was already occupied by 39.1 percent in December, 2016. He added that PPF Kijitonyama has four houses and two of them are occupied.

Moreover, PPF Kaloleni in Arusha is 75 percent occupied by tenants. However, the Minister said the number of tenants have dropped from 84.8 percent in June, 2016 to 75 percent in December, 2016 in the four buildings such as PPF Tower and Parking Arcade, PPF Plaza- Mwanza, PPF House and PPF Olorien Estate.

Daily News