Government waives tax on maize imports

In a move designed to boost food supply in the country, the Tanzanian government has authorised a three-month tax exemption for the importation of maize, the nation's staple, with immediate effect. "In order to encourage the business community to import more food in the face of anticipated food shortage, the government is offering tax exemption on importation of maize beginning 23 January to 23 April," said Peniel Lyimo, the permanent secretary in Tanzania’s Ministry of Agriculture, Food Security and Co-operatives, in a statement on Wednesday. "The move aims at boosting maize supply and thus keeping its prices low," he said. Lyimo added that ports and other entry points had been instructed to prioritise the clearance of imported food consignments. He urged traders in possession of food stocks to release them into the market. He condemned hoarding by some traders, who are reported to be waiting for prices to go up in order to make bigger profits. In early January, President Jakaya Kikwete said about 613,000 people in the country would need 21,500 tonnes of relief food between now and the end of February. The food shortages are largely blamed on the failure of the short rains, which normally fall between late October and December. The growing cycle following the short rains accounts for 30 percent of the country's annual food harvest. Long rains fall from mid-March to May.