(2 minutes read)
· Tanzania’s new President Samia Suluhu Hassan said that the government would reduce the income tax rate by 1 percentage point to 8%, in the 2021/22 financial year beginning in July
· She also assured that unfriendly taxes and charges to Tanzanians, will be dropped to provide for a development oriented tax regime
· She also indicated she would take steps for improving the investment climate in the country. Under her predecessor’s -Magufuli- rule foreign direct investment plunged.
· Investors complained of a difficult business environment
Tanzania’s new President Samia Suluhu Hassan said that the government would reduce the income tax rate by 1 percentage point to 8%, in the 2021/22 financial year beginning in July. She also assured that unfriendly taxes and charges to Tanzanians, will be dropped to provide for a development oriented tax regime.
In her Labor Day address to the nation, the President said that the COVID-19 pandemic had hurt global economic growth and Tanzania’s economy was no exception. The cut in tax rates is meant to kick start the economy, which is under severe strain. She also indicated she would take steps for improving the investment climate in the country. Under her predecessor’s -Magufuli- rule foreign direct investment plunged. Investors complained of a difficult business environment.
Magufuli who died last month urged Tanzanians to shun mask-wearing and denounced vaccines as a Western conspiracy, frustrating the World Health Organization. Tanzania stopped reporting coronavirus data in May 2020.
