Sustained investment, positive tax measures by govt boost TCC results

20Mar 2019
Theodatus Muchunguzi
DAR ES SALAAM
The Guardian
Sustained investment, positive tax measures by govt boost TCC results

SUSTAINED investment and Treasury’s good tax measures have paid a key role in enabling Tanzania Cigarette Public Limited Company (TCC Plc) to post 436.5bn/- in gross revenue with net profit of 47.9bn/- last year.

TCC Plc’s CEO Alan Jackson. File photo.

In its latest audited accounts and financial results for year ended December 31, 2018, TCC Plc said its gross revenue increased by 4.3 percent while net profit surged by 5.7 percent while proposing a dividend of 450/- in total last year, an increase by 12.5 percent.

“The results reflect a strong performance driven by sustained levels of investment, a stable excise tax, pricing in the domestic market, and improved product mix,” said TCC Plc CEO, Alan Jackson.

“I am delighted to report another year of continued resilience in spite of some of the economic challenges that we all witnessed in 2018,” Jackson added.

He said the company employed a top line growth strategy with attention to operational efficiencies hence able to invest and resource the business in a manner that stimulated growth for both domestic and export markets.

TCC Plc Board Chairman, Paul Makanza said also expressed delight at the strong results commending Treasury for undertaking better tax reforms which contributed to the growth. “The launch of the ‘Blue print for regulatory reforms’ to improve the business climate is very encouraging. We hope its recommendations will be implemented,” Makanza said.

“On-going significant investments in energy and transport infrastructure to unlock further business opportunities in and outside Tanzania point to a bright future. We are optimistic that the government will sustain the positive macro-economic achievements of 2018 and that peace and stability will prevail in the DRC,” he added.

The Board Chairman hailed the government for its decision to freeze excise duty this fiscal year adding that it led to a positive impact on the cigarettes manufacturer’s performance. “The favourable tax measure enabled the company to pay higher corporate tax to the government as well as a higher dividend payout to shareholders,” he pointed out.

“The company appeals to the government to maintain the freeze or lower excise tax rate to support growth to businesses and innovation which is key for enhancing the country’s drive for industrialization,” Makanza emphasised.