Rise in hide and skin export duty backfires in Tanza - leatherbiz: Lea Leatherbiz

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Rise in hide and skin export duty backfires in Tanzania

19/12/2012
An increase in export levies on hides and skins from Tanzania, from 40% to 90%, has failed to stop a shortage of raw materials for Tanzanian tanneries because smugglers, attracted by high prices on offer in neighbouring countries, are still taking large volumes of hides and skins across the border.

In recent comments, ministry of livestock development and fisheries official Emmanuel Muyinga, said: “Small-scale entrepreneurs who were vending raw hides and skins to domestic processors have stopped. It is currently unknown whom they trade with.”

Smuggling is also depriving the government of duty revenues of, approximately, $600,000.


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