50g-natural-and-organic-green-raw-coffee-beans-chinese-yunnan-roasted-coffee-bean-roasted-arabica-coffee.jpg_640x640The government has proposed the reduction of Produce Cess charged by Local Government Authorities in it’s Draft financial Bill 2017/18.

This comes after numerous  complaints from the business community especially farmers and traders in the agriculture sector. The major complaints was the absence of uniform Cess across LGAs in different localities. The other second issue regarding the admission of the cess while transporting the crop from one LGA to another, making business from agricultural produce not economically viable.

Through Advocacy on the part of TPSF and members including Agricultural Council of Tanzania (ACT), Produce Cess is proposed to reduce from 5% to 3%  on cash crops and from 5% to 2% for food crops. The Cess will also not be applied on transportation of crops of less than 1 ton from one Local Government Authority to another. This measure is intended to increase the income earned by farmers when selling their crops and stimulate agricultural production.