Fear of factory closures with 10% export levy on wet-blue

Published:  16 June, 2015

Tanzania’s government’s proposition to impose a 10% tax levy on the export of wet-blue has raised concerns among the stakeholders. The tax is supposed to encourage value addition to products and help the country’s investments in leather manufacturing but there is fear that this levy will deteriorate the industry’s production leading some factories to close down and to an increase in smuggling rates.

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