Tanzania government signals no change in controversial cashew nut tax

Dodoma. Hot debate could be expected in Parliament on Thursday, June 28, as the government has maintained its position over the controversial cashew nuts tax.

Read more: Parliament in limbo over cashew nuts

Presenting the Finance Bill, 2018 in Parliament today (Thursday, June 28, 2018), the Finance and Planning Minister, Dr Phillip Mpango said the government was proposing to amend the Cashewnut Industry Act (Cap,203) – through the Finance Bill 2018 - with a view to ensuring that export levies are collected in the consolidated fund.

Read more: Attorney General ends cashew nut debate

This will be a shift from the current situation whereby 65 per cent of the crop export levy is meant to be remitted to farmers through the cashew nut fund and the remaining 35 per cent is to be directed to the government’s consolidated fund.

Read more: AG Kilangi hits last nail on cashew nut fund debate

"Mr Speaker, Part Four of the Finance Bill, 2018, intends to amend the Cashew nut Industry Law....the aim is to ensure that all export levies from cashew nuts are collected through the consolidated fund....this will give the government a role of effectively funding the cashew nut crop and the Cashew nut Board," he said.

It is expected that the issue will result into a hot debate in the Parliament, considering that just yesterday (Wednesday), MPs from the opposition bench said they will not relent in their ‘struggle’ to ensure that rights of the growers of the cashew nut crop – which brings the highest amount of foreign exchange earnings than a combination of five other traditional export products – are not ‘tampered with’.

Read more: This is why cashew nuts have gripped Tanzania Parliament

On Monday, there was hot debate in the House as opposition MPs joined their counterparts from cashew nut producing regions in the ‘battle’ to protect the interests of farmers from the delicately flavoured nuts.