LONDON (Alliance News) - Obtala Resources Ltd Thursday said it expects an improved margin from products farmed at its project near Morogoro, Tanzania, after being awarded an export processing zone certificate by the country's Export Processing Zone Authority.
In a statement, the agri-processing, farming and timber company said fiscal incentives that come with the grant of the certificate include duty and value-added tax exemption on raw materials, capital goods, administrative vehicles, ambulances, fire fighting equipment and two staff buses. Other fiscal incentives include includes VAT exemption on utilities and wharfage, and exemption on taxes and levies charged by local government authorities.
The certificate also brings about the following procedural incentives, according to Obtala: operation under one licence issued by The Export Processing Zone Authority, visa at point of entry to key technical staff, unconditional transferability of profits, dividends and royalties, and on-site customs documentation and inspection.
"The award of this certificate from the authorities in Tanzania is highly significant due to the fiscal incentives that will ultimately improve our margin from products farmed at Morogoro. Also, this now gives us the ability to actively pursue our previously stated intention of building a cannery facility on the Morogoro project to enhance the product range from the farm and drive new revenue opportunities. Finally, the EPZ certificate will allow us to import capital goods duty free and provide additional benefits as we ramp up operations in Tanzania," Managing Director Simon Rollason said in a statement.
Obtala shares were Thursday quoted up 1.3% at 9.50 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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