What You Need to Know
President Samia Suluhu Hassan has announced the establishment of the Presidential Commission on Tax Reforms to address long-standing issues in Tanzania’s tax system. The commission aims to revitalize tax policies to meet current economic and investment needs, supporting the nation’s 2050 Development Vision for economic growth.
Africa-Press – Tanzania. President Samia Suluhu Hassan has stated that the decision to establish the Presidential Commission on Tax Reforms was driven by long-standing complaints from citizens, businesspeople, investors, and development stakeholders regarding challenges in the country’s tax system.
Speaking while receiving the commission’s report, President Samia said the main goal of its creation is to conduct a thorough assessment and revitalize the tax system to align with current economic, investment, and business needs. She emphasized that reforms form the foundation for long-term development, and the nation must self-assess and adapt to keep pace with global changes.
“We must remove the layers of tax complaints and start afresh with a better system that meets current needs,” President Samia said.
She noted that the commission, chaired by Ambassador Ombeni Sefue, was established nearly 35 years after the Mtei Commission, which operated from 1989 to 1991 and focused on public revenue, taxation, and government expenditures at the time.
President Samia highlighted that the report was submitted at a critical moment as Tanzania prepares to implement the 2050 Development Vision, which aims to grow the economy to one trillion by that year. She explained that in implementing this vision, the Government is expected to contribute approximately 22 percent, the private sector and other stakeholders 70 percent, and public institutions 8 percent, underscoring the importance of creating a tax-friendly environment that promotes investment and business growth.
Furthermore, she emphasized the need to adjust policies, laws, and tax administration systems to match ongoing economic, technological, and political changes globally. She added that the world is currently experiencing intense economic and technological competition, along with shifts in international business strategies, including the trend of countries relocating production closer to their markets, making it imperative for Tanzania to prepare and remain competitive.
The establishment of the Presidential Commission on Tax Reforms marks a significant step in Tanzania’s efforts to modernize its tax system. This initiative comes nearly 35 years after the Mtei Commission, which focused on public revenue and taxation in the early 1990s. The new commission aims to address persistent complaints from citizens and businesses regarding tax challenges, reflecting a growing recognition of the need for reform in response to global economic changes.
As Tanzania prepares to implement its 2050 Development Vision, which targets a one trillion economy, the commission’s work is crucial. It seeks to create a tax-friendly environment that fosters investment and aligns with
