The Confederation of Tanzania Industries (CTI) has provided its analysis and response to key highlights from the Tanzanian Government’s 2023/2024 Budget Speech, lauding the government’s commitment to economic growth and industrial development.
CTI is a leading organization representing the private sector in Tanzania. It has been a major player in the country’s economic affairs since its establishment in 1991. CTI’s role involves advocacy for a conducive business environment and promoting economic growth through industrial development.
The Tanzania Government’s 2023/2024 Budget, as presented by the Minister for Finance and Planning Hon. Dr. Mwigulu L. Nchemba (MP), aims to mobilize and spend a total of TZS 44.39 trillion, marking an approximately 7% increase from TZS 41.48 trillion budget for 2022/2023.
The budget includes tangible investments and new measures aimed at promoting the growth of industries, stimulating entrepreneurship, and creating jobs.
Key highlights include substantial reforms in tax structure, fees, levies, and amendments to laws and regulations aimed at improving the business environment.
“The proposed tax measures will enable domestic industries to reduce the cost of production, improve consumer welfare, promote the use of local materials, enhance competitiveness, and stimulate economic growth,” CTI said in a statement.
However, despite these positive steps, the CTI warned about areas in the budget that could potentially hinder industrial development.
The organization highlighted an increase of 20% excise duty on beer and tobacco products, and the introduction of an excise duty on cement, among others, as measures that might negatively impact leading industries in Tanzania. The confederation has requested the Government to reconsider these actions.
Significant funding has also been allocated in the budget towards infrastructure development and improvement of transport links, with special emphasis on expanding transportation infrastructure, increasing power generation and distribution, and establishing special economic zones.
“The CTI is optimistic that if executed properly the 2023/2024 budget will significantly support the initiatives taken by the Government to build a sustainable industrial economy and is committed to continue working hand in hand with the 6th Phase-Government to achieve the set social and economic goals,” the statement concludes.