Factors affecting competitiveness of Tanzanian metal products in east African customs union: the case of metal products in Dar es Salaam, Tanzania

This study is centred on factors affecting competitiveness of Tanzanian metal products in East Africa Customs Union. The main of this study was to analysis the factors hampering the competitiveness of Tanzanian metal Products in East Africa. A sample of 30 Dar es Salaam metal produces was peaked. Data was analysed using both the statistical package for Social Sciences (SPSS) and Manual analysis. Relationships were obtained from cross tabulated data and in-depth discussions that were conducted. The findings revealed that high tax rates were found to have significant association with poor performance of the manufacturing industry. Respondents were found to be comfortable with the policy, the management and even the administration of taxes in the region. However, the ever increasing tax rates were found to be of much concern to the respondents. Running costs and the anticipated profits have been negatively affected by the ever increasing tax rates. The implication of the findings to the theory is that; the government should ensure that tax rates and administration should not affect the competitiveness of Tanzanian producers in all sectors of the economy. As an incentive to expand exports, the local manufactures of metal products should be.