President Samia Leads 15th TNBC Meeting, Focuses on Tax System Reforms and Economic Stability

On July 30th, 2024, President Samia Suluhu Hassan chaired the 15th Tanzania National Business Council (TNBC) meeting at the State House in Dar es Salaam.

Established in 2001, the TNBC serves as a crucial platform for dialogue between the government and the private sector, aiming to improve Tanzania’s business environment and drive economic growth.

The Council is a high-level forum that brings together 40 members, equally divided between the public and private sectors. Chaired by the President of Tanzania, the TNBC meets biannually to discuss and address key issues affecting the country’s business landscape.

Its primary objective is to foster collaboration between the government and private sector stakeholders to enhance Tanzania’s economic development.

Key Outcomes of the 15th TNBC Meeting

Tax System Reforms

During the meeting, President Samia addressed significant challenges faced by businesses, particularly concerning tax-related issues. She highlighted problems such as the freezing of traders’ bank accounts, improper seizure of funds, and disruptions in electronic fiscal devices (EFDs).

To tackle these issues, she announced the formation of a special committee comprising members from both the public and private sectors. This committee will conduct a comprehensive review of the tax system, including policies and legal frameworks, to create a more supportive operating environment for businesses.

Economic Growth and Stability

The President emphasized the government’s commitment to fostering economic growth and creating a favorable climate for both domestic and foreign investors. Despite global economic challenges, Tanzania’s economy has shown resilience, with a GDP growth rate of 5.2% in 2023, up from 4.7% in 2022. Inflation has been maintained at 3.0%, and food sufficiency is estimated at above 120%.

From July 2021 to June 2024, Tanzania registered 1,350 major investment projects valued at $14.2 billion, expected to create approximately 324,381 jobs. These figures underscore the positive impact of the government’s efforts to improve the business environment, a key focus of TNBC’s work.

Digital Transformation and Infrastructure Development

A significant part of the discussions centered around the newly developed ten-year national digital transformation strategic framework. This initiative aims to harmonize digital systems across public institutions, corporations, and ministries, facilitating easier provision of services to clients in the private sector and other stakeholders.

In terms of infrastructure, the government has reformed railway operations to eliminate bureaucratic hurdles, allowing private operators to use public infrastructure for cargo transportation. This move is expected to boost efficiency and support economic activities across the country.

Private Sector Feedback

The TNBC meeting also provided a platform for the Private Sector Foundation Tanzania (TPSF) to voice its concerns. TPSF Chairman Ally Amour pointed out weaknesses in tax enforcement and the strained relationship between the business sector and the Tanzania Revenue Authority (TRA).

He called for a more collaborative approach to tax collection and emphasized the need for the government to reduce its dollar spending to alleviate the dollar deficiency affecting many businesses.

Outcome

The 15th TNBC meeting underscored the government’s dedication to improving the business environment in Tanzania through public-private dialogue. With the planned tax system reforms, digital transformation initiatives, and infrastructure development, the country is poised to achieve sustained economic growth and stability.