AfricaPress-Tanzania: THE Confederation of Tanzania Industries (CTI) has said the 2020/21 national budget has largely accommodated concerns of industrialists to stimulate industry-driven economies.
The umbrella body of owners of the industries further stated that the budget will address the challenge of high costs of doing business and create employment and as well generate wealth in public.
The group made their remarks in Dar es Salaam yesterday ahead of the conclusion of the 2020/21 budget session, and Parliament dissolve in Dodoma.
Commenting, first Vice-Chairman of the CTI, Mr Paul Hamza, said they have gone through the budget and were satisfied that the document has contained most parts of their views.
“The CTI wishes to thank the government for taking measures that are aimed at stimulating industrial growth,” Mr Hamza noted.
Some of the measures that the CTI saw in the budget as crucial for industrial growth included the continued rehabilitation of infrastructure, including those damaged by floods. He said it was important that the new budget has offered support to alleviate negative impact of the Covid-19.
In a related development, manufacturers, who are major players in driving home the government ambition to put the industrial sector at centre of its agenda, hailed the budget as rightly propelling the country into the middle income economy by 2025.
Expounding, the CTI argued that continued financing and implementing of various strategic projects was another area to commend.
He mentioned some of key projects as construction of Central Railway Line to Standard Gauge, construction of Julius Nyerere Hydropower Project and Strengthening Air Tanzania Company Ltd (ATCL).
The CTI also nodded to the budget, citing the fact that it has ensured that agriculture and industry become the leading agenda, whose focus would source raw materials to the envisioned industries.
Mr Hamza also hailed the government for continuing implementing the Action Plan on the BluePrint for regulatory reforms to improve the business environment by continuing to reduce taxes and charges, and as well eliminating the overlapping of responsibilities among government agencies dealing with regulatory, business and investment issues.
According to him, some of favourable responses to CTI tax proposals in the 2020/21 budget were the amendment of Value Added Tax Act made to enable exporters of raw products to recover input tax and enhance the competitiveness of the products in the international markets as well as abide by the VAT destination.
Also reduction in skills development levy from 4.5 to 4.0 per cent to relieve employers from high cost of employment.
