Tanzanian President John Magufuli recently instructed the Ministry of Livestock and Fisheries to increase the export levy on raw hides and skins from 80% to %100.
President Magufuli gave the directive while he was inaugurating the National Leather Company Limited in the Morogoro Region.
He instructed the increase in the taxes on exported hides so that the skins can be processed in Tanzania where they will increase local employment and government revenues.
During the two-day visit to the Morogoro Region, he also instructed the Ministry of Industry and Trade to eliminate the bureaucracy hampering the industrial development in the country.
Tanzania Hides and Skins Exports
According to the Livestock and Fisheries Commodity Value Chain Briefs N.3 by the Ministry of Livestock and Fisheries, hides and skins exports from Tanzania for 2018/19 (April) were worth USD 3.6 million (MLF 2019).
Although Tanzania’s collection of hides and skin has been increasing over time, the quantity collected is much lower than the potential which limits Tanzania’s ability to meet the quantity demanded at the local, regional and international markets.
The opportunities associated with this value chain are not well exploited due to various constraints along the value chain, which include challenges in handling and meeting quality standards.