AfricaPress-Tanzania: ZANZIBAR President Dr Hussein Mwinyi has pledged tax relief to all businesses in the islands effective next fiscal year.
President Mwinyi has further assured petty traders of friendly working environment, imploring them to work hard to increase their operations and graduate to middle and large traders.
Dr Mwinyi told journalists here on Tuesday evening that the government is already working on tax regime changes to introduce business welcoming tax regime in the country.
“Tax reduction is a process; we cannot just emerge today and say we have reduced taxes but we are seriously working on it. The minister (for finance and planning) will come up with admirable reforms in his budget later this year,” Dr Mwinyi told a State House-hosted press conference on Tuesday.
He was fielding questions from journalists on his first 100 days at the Vuga-based office.
Already, Dr Mwinyi has met Zanzibar-based business community for deliberations on the best approach to improve the country’s trading environment.
Exorbitant and multiple taxes though remain the major outcry of many businesspeople in the Islands.
Fortunately, President Mwinyi has publicly declared his devotion to low and friendly tax regime to lure more taxpayers and increase the government’s revenue collections.
“I’m personally a devout believer in low and graciously payable taxes,” Dr Mwinyi has repeatedly said in his speeches.
Speaking to editors and journalists on Tuesday, he reiterated his firm commitment to nurture strong public-private sector partnership to speed up economic development, with the private sector assuming the leading role in developing the economy.
He pledged to introduce responsive systems for the banking sector to flourish and create attractive environment for the Diaspora to return home and invest in social and economic projects.
“Our doors are wide open to our fellow Zanzibaris and Tanzanians in general from anywhere in the world. We want not only their capitals but also their expertise. It’s high time they returned home to help in building our economy,” said the president.
He appreciated the positive perception of many commercial banks, which have expressed interest to expand their operations in Zanzibar.
“We have hosted the delegations of many banks here (State House); they are all willing to partner with the government,” he said.
President Mwinyi underscored the need for more sources of alternative energy to support the envisaged huge economic projects, describing the current 100 megawatts as too little to support the ambitious modern blue economy.
He said the government has secured an American investor in solar power project to generate additional 350 megawatts of electricity.
We are also planning construction of a 135kV transmission line to support the project,” he explained.
