Tanzania's government has reaffirmed its commitment to establishing a fair and predictable tax system designed to support business growth and investment, as part of broader efforts to reach the Development Vision 2050 target of building a one-trillion-US-dollar economy by 2050. Deputy Minister for Finance Engineer Mshamu Ali Munde made the commitment while opening the annual conference of Ernst & Young (EY) Tanzania, an international tax advisory, auditing and business consulting firm, in Arusha.
Munde, representing Finance Minister Ambassador Khamis Mussa Omar, said achieving the Vision 2050 targets would require close collaboration between government, the private sector and professional services firms. He outlined the government's vision for tax reform. "To achieve a one-trillion-US-dollar economy by 2050, we need productive private-sector investment, strong institutions and a tax system that promotes competitiveness and business growth. The government is committed to creating a conducive environment that enables taxpayers to meet their obligations voluntarily," Munde said.
The government plans to implement recommendations from the Presidential Commission for Tax System Review, including integrating systems used by the Tanzania Revenue Authority and local government authorities. The government will also allocate five per cent of local government resources to improve market infrastructure. Information and communication technology systems and data analytics will be strengthened to reduce face-to-face interactions between taxpayers and tax officials, while joint inspections among regulatory institutions will be promoted.
Additional measures include continuing a one-year tax relief programme for newly established small businesses to help them build capital. The government will also implement the second phase of the MKUMBI strategy, aimed at reducing the accumulation of fees and levies. The Ministry of Finance has established a dedicated Non-Tax Revenue Section to coordinate this work.
For businesses and investors in Tanzania, a more predictable and integrated tax system could reduce compliance costs and administrative burdens, while small businesses would benefit from temporary tax relief and reduced fee accumulation during their early years.