Tanzania targets fairer tax system to unlock US$1 trillion economy by 2050

By Correspondent Saidina Msangi, Arusha

Tanzania plans to ease the tax burden on new small businesses, reduce overlapping fees and levies, and integrate tax administration systems as part of reforms aimed at stimulating investment and achieving a US$1 trillion economy by 2050.

The measures form part of the government’s drive to establish a fairer and more predictable tax system, improve voluntary compliance and reduce the administrative costs businesses face when meeting their tax obligations.

Deputy Minister for Finance Mshamu Ali Munde (pictured) announced the plans while opening the annual tax conference organised by Ernst & Young (EY) Tanzania at the Gran Meliá Hotel in Arusha. He represented Finance Minister Khamis Mussa Omar.

Munde said achieving Tanzania’s Development Vision 2050 would require productive private-sector investment, strong institutions and a tax framework that promotes business competitiveness and growth.

Some participants follow the keynote address at Ernst & Young (EY) Tanzania’s annual conference, held at the Gran Meliá Hotel in Arusha.

“To achieve a US$1 trillion economy by 2050, we need productive investment from the private sector, strong institutions and a tax system that promotes competitiveness and business growth,” he said. He added that the government was committed to creating a business-friendly environment in which taxpayers could fulfil their obligations voluntarily.