Tanzania to introduce new strategies to boost tax collections

The government is set to introduce new strategies to enhance the country’s revenue collection to 15 percent of the Gross Domestic Product (GDP).

During the 2024 Tax and Investment Forum at the Julius Nyerere International Conference Center (JNICC) in Dar Es Salaam, Vice President Dr. Philip Mpango revealed that Tanzania’s tax collections have consistently remained below 12 percent of the GDP from 2010/11 to 2022/23.

Dr. Mpango pointed out that many countries in the same low-middle income category as Tanzania achieve over 13 percent, such as Senegal (18.7), Zambia (16.8), Ghana (14.1), Ivory Coast (13.9), and Cameroon (13.3).

In response to investors’ concerns, Dr. Mpango emphasized the government’s commitment to enhancing policies, laws, and tax management systems. He stressed the importance of enacting effective laws and creating a conducive environment to promote trade and investment, ensuring taxpayers meet their obligations within the legal framework.

Highlighting the government’s initiatives, he mentioned that approximately 460 legal enhancements have been implemented during the sixth phase of government, representing about 80 percent of the improvements achieved in a short period.

Furthermore, the Vice President directed the Minister for Finance, Mwigulu Nchemba, and the Minister of State for the President’s Office (Planning and Investment), Professor Kitila Mkumbo, to implement a new and comprehensive tax system that aligns with the economic changes in Tanzania since the 1990s.