Lower taxation can boost TBS pursuit of improving quality of local products

The Guardian
Published at 09:21 AM Aug 29 2024
Taxation illustration
Photo: File
Taxation illustration

JUST how far can the Tanzania Bureau of Standards (TBS) push micro, small or medium-sized enterprises to register for standards guidance and evaluation was an issue being explored lately in a city workshop. Whether small firms seek technical instructions on best production methods via Small Industries Development Organisation (SIDO) engineers is one thing, but it is likely there are variations as to enhance product competitiveness. |It also depends on projected market presence for startups and confirmed brands, whether to catch up with the best or be second best.

An acting manager for TBS in the eastern zone was telling brand makers or simply small industry operators that they certify their products with the standards agency, point out that the process is free of charge. That is factually accurate but it also has to do with felt need on the part of the producer, as he will respond better if there is a felt need for guidance for instance to be accepted in the market. If that isn’t at issue, it becomes a matter of compliance, and if it isn’t a regulatory issue he skips it.

The fact that the manager talked of many producers had started comprehending the issue and were taking advantage of the free service following recent outreach efforts did not solve the matter as to its actual advice seekers. There are many startups in any production line, and one aspect of expectations is that with the right quality a new brand can make it into the market. The other school of thought would figure out that there has to be a shortage or real need, or massive up market ability.

When a not so small number of producers fail to meet criteria needed to certify their goods, the issue comes up as t[o whether it is a technical issue of being unaware of procedures or it relates to the product itself. There are countless products being put to the market each day and have their own consumers in terms of tastes and costs, in which case the issue of certification is puzzling. Is it minimally acceptable level of proficiency or optimal requirements? Is it a health related issue or brand value?

The only explanation given in that regard was that a producer needs to liaise with SIDO for an introduction letter for TBS to consider certification. Anyone who knows SIDO will be thinking of machinery and technical ability to make this or that product, and TBS is on a different league, as to the quality of the produce thereof. Yet the decider here is the price and producers will refrain from adding costs they do not expect to recover within the price margin they are setting, its sales volume. 

That is why lower taxation is always helpful with costs, standards or verification, as TBS usually doesn’t go into shops to get all unverified products unless problem is reported somewhere, to save faces. So it makes quality extension education effort but keeps meeting with cost-related aversion to checks. It is stressful but helpful.