Government move on oil ship affects Tanga economy
By Paskal Mbunga, Tanga January 29, 2014
TANGA's
battered economy continues to slip behind following the Government
decision to terminate the off-loading of petroleum liquid at the Tanga
port imported by private oil depot owners in the region, which has a
far reaching consequences as regards to peoples' daily life.
The
government move is translated as a protection gear against rampant
cheatiing by the oil transporters countrywide forcing the government to
make Dar es Salam port as the centre point for
petroleium oil distribution under the bulk procurement policy..
However,
more than 500 people in this town whose lives depended on the
off-loading incoming tankers from the Middle East have been disrupted
as they do not have any business to do now.
According to the Chairman of the Union of the Port Workers in Tanga, Mr.Ali Hassan told this paper that the city's residents are now experiencing the pinch following the government move whereas employment in the sector came to a ground halt at the end of 2012 after the big tankers said good bye to the beautiful coastal city.
Hassan said hundreds of youth who got the opportunity in employment or casual jobs with the tankers have now been laid off. Petty businesses which mushroomed in and around the port areas have dwindled giving way to people engaging in criminal activities.
The Tanga port authorities said it has lost a considerable amount of revenue after the government move to terminate importation of petroleum oil by oil depot owners under the bulky procurement policy.
The Acting Tanga Port Manager, Fred Liundi said it was the petrodollar that increased the port's revenue tremendously ranking oil as the main top revenue source.
Liundi said for the last two years, 2010/2012, Tanga port total accrued revenue stood at (so much billions)of which over half of it derived from oil revenue collection.
But when the government move to curtail importation of petroleum oil by private depot owners, the port revenue plummeted from (billions to millions) hence sending hundreds of casual workers into jobless.
The Tanga TRA Regional Manager, Juma Mahanyu asserted that though the region has lost one of its main revenue source,the government has lost nothing in terms of revenue, because it is the same regime which also collects in Dar es Salaam and is entered in the general government fund.
He disclosed that during the 2010/2011 fiscal year, the authority collected T.shs. 7,475,605,550.57 from oil revenue
He said the volume dropped dramatically for the 2012/2013 fiscal year when the importation of petroleum products through Tanga port was localized for transit fuel intended to go to the Democratic Republic of Congo (DRC)..
"The Regional Revenue Collector managed to collect only T.shs .2,177,705,783.20 from wet cargo for the 2012/2013 financial year".he said.
"The contributions of more than seven billion shillings from wet cargo like that which contributed in 2011/2012 fiscal year to disappear permanently, is a very big loss to the region", conceded Mahanyu, adding that despite of the amount contributed unexpectedly gained from localization of transit fuel intended for the Democratic Republic of Congo (DRC) for the 2012/2013 financial year.
During the financial year 2012/2013, customs revenue collection performance tends to be very poor in Tanga region against the over estimated allocated target.
Comparisons with other two previous financial years have abeen made to ascertain the contributors of such low performance.
According to the Chairman of the Union of the Port Workers in Tanga, Mr.Ali Hassan told this paper that the city's residents are now experiencing the pinch following the government move whereas employment in the sector came to a ground halt at the end of 2012 after the big tankers said good bye to the beautiful coastal city.
Hassan said hundreds of youth who got the opportunity in employment or casual jobs with the tankers have now been laid off. Petty businesses which mushroomed in and around the port areas have dwindled giving way to people engaging in criminal activities.
The Tanga port authorities said it has lost a considerable amount of revenue after the government move to terminate importation of petroleum oil by oil depot owners under the bulky procurement policy.
The Acting Tanga Port Manager, Fred Liundi said it was the petrodollar that increased the port's revenue tremendously ranking oil as the main top revenue source.
Liundi said for the last two years, 2010/2012, Tanga port total accrued revenue stood at (so much billions)of which over half of it derived from oil revenue collection.
But when the government move to curtail importation of petroleum oil by private depot owners, the port revenue plummeted from (billions to millions) hence sending hundreds of casual workers into jobless.
The Tanga TRA Regional Manager, Juma Mahanyu asserted that though the region has lost one of its main revenue source,the government has lost nothing in terms of revenue, because it is the same regime which also collects in Dar es Salaam and is entered in the general government fund.
He disclosed that during the 2010/2011 fiscal year, the authority collected T.shs. 7,475,605,550.57 from oil revenue
He said the volume dropped dramatically for the 2012/2013 fiscal year when the importation of petroleum products through Tanga port was localized for transit fuel intended to go to the Democratic Republic of Congo (DRC)..
"The Regional Revenue Collector managed to collect only T.shs .2,177,705,783.20 from wet cargo for the 2012/2013 financial year".he said.
"The contributions of more than seven billion shillings from wet cargo like that which contributed in 2011/2012 fiscal year to disappear permanently, is a very big loss to the region", conceded Mahanyu, adding that despite of the amount contributed unexpectedly gained from localization of transit fuel intended for the Democratic Republic of Congo (DRC) for the 2012/2013 financial year.
During the financial year 2012/2013, customs revenue collection performance tends to be very poor in Tanga region against the over estimated allocated target.
Comparisons with other two previous financial years have abeen made to ascertain the contributors of such low performance.
While Tanga region continues to suffer from strangled employment opportunities and other income generating avenues, unemployment in Tanga city accounts for about 90 per cent of the region's population, hence putting its economic progress at stake.