The request for state governments within the East Africa region to introduce double tax duty on imported cement has hit a snag as the governments had turned a blind eye to the manufacturers appeal.
Cement imported from India, China and Pakistan into the East African Community (EAC) member states is hurting local manufacturers since it is sold at a very cheap price than the locally manufactured products.
The massive imports have had a major effect on Tanzania’s cement industry, where two of the three companies had to suspend their operation last year while the other reduced production of cement after the storage facilities were full of cement.
Dumping of cheap imports in the East African market is posing a big blow to cement manufacturers especially at this time when the majority of them are expanding their businesses from local into international markets.
The Director of Policy and Advocacy with the Confederation of Tanzania Industries, Mr Hussein Kamote said last week that the Confederation had no problem with imported cement.