‘‘Accelerating Economic Recovery and Enhancing Productive sectors for improved livelihood’’

The TPSF commends the Government budget for 2021/2022 as it demonstrated the strong commitment of the
6th phase government to further improve the business environment in the country and it is aligned with the
Third Five Years Development Plan (FYDP – III) which amongst other things aims to improve the living
conditions of Tanzanians, build a strong and competitive economy and increase efficiency & productivity in
manufacturing activities.

With the fiscal budget mainly targeting to improve the living conditions of Tanzanians, emphasize on
increasing production capacity through industrial revolution, promote investment in key economic
infrastructure, strengthen Government Expenditure discipline and accessibility to social services, addressing
the rising general price level as well as the inherent inflationary prospects on the back of hiking fuel prices is of
paramount importance and priority.

In implementation of this year’s budget the Government has committed to continue improving business environment and opening up more opportunities for the private sector in order to increase private sector’s contribution to the economy, employment opportunities and revenue collections at large; and continue establishing one stop centers to ensure all requirements for business services are available in one area.

Specifically, TPSF members have continued to benefit from reforms that aim to remove nuisance taxes, reduce taxes in raw materials, reducing employment tax and setting competitive taxes against cheaper imports. TPSF commends the Government for considering proposals from our members that were submitted through the Task Force for Tax Reforms, Think Tank, Tanzania National Business Council (TNBC) and other engagement platforms. In particular the sector-specific recommendations that have been positively received through our proposals include; Agriculture, Manufacturing, Telecommunications, Tourism, Forestry, Insurance and Employers.