TANZANIA RAISES PRICES TO KEEP BUDGET DEFICIT DOWN
The Tanzanian government raised
the price of beer, soft drinks and cigarettes by 20 pct and
telephone and telex calls by 10 pct in an attempt to keep its
budget deficit for this financial year roughly on target.
    The deficit for the financial year ending on June 30 was
initially forecast at 3,350 mln shillings and the new measures
will raise some 700 mln shillings in extra revenue, a statement
from the Ministry of Finance, Economic Affairs and Planning
said.
    According to the statement, the price increases, which take
immediate effect, were needed because the government had lost
tax revenue through lower than expected industrial production.
Water and power problems and a shortage of spare parts had
reduced the output of Tanzanian factories, it said.
    The ministry also announced a new 30 pct tax on goods
imported by non-resident businessmen and said the government
would take steps against importers who have been evading duty
in collusion with corrupt customs officials.
 REUTER
