• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Friday, June 6, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

Tax grace period excites investors, economists in Tanzania

Tax

The Matters Press by The Matters Press
March 12, 2023
Reading Time: 3 mins read
0
FIRS deploys tech platform for tax collection

Business leaders and economists have expressed optimism over the government’s decision to introduce a grace period for the payment of taxes by new businesses.

RELATED POSTS

Nigeria’s 3MTT gets boost as EU, World Bank back initiative

PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF

FCT ground rent!: Check your name if you own property

The amnesty is the latest of the reforms the government has been undertaking to make it easier to do business in Tanzania.

The Minister for Investment, Trade, and Industry, Dr Ashatu Kijaji, recently said that President Samia Suluhu Hassan granted a tax deferment of between six months and one year for new businesses.

Speaking during the commemoration of International Women’s Day in Kondoa on Wednesday, Dr Kijaji called on the public to stop taking loans with high interest rates to finance their businesses.

“District councils have been issuing low-interest loans to entrepreneurs’ groups and people with disabilities. President Samia Suluhu Hassan has also issued funds to SIDO (the Small Industries Development Organization) so as to help small businesses. Take up these opportunities,” she noted.

Reacting to the reports yesterday, stakeholders from the business community and academia hailed the move, saying it would eventually lead to more employment and more taxes.

The amnesty will be more beneficial to Small and Medium Enterprises (SMEs), many of which have been avoiding the huge tax burden by going underground and operating informally.

“I think this is quite alright. The move is a step in the right direction,” said a lecturer at the University of Dar es Salaam’s (UDSM) Economics School, Dr Wilhelm Ngasamiaku, adding that President Hassan’s decision will create an enabling environment for local entrepreneurs to invest.

Dr Ngasamiaku added that the initial practice was undermining businesses and holding back entrepreneurs because they were taxed before even starting operations.

“It was not appropriate for the taxman to slap tax bills on new businesses based on estimates made even before the new company is up and running,” he said.

“But now we expect to see more SMEs come up. That will help businesses grow and widen the tax base, and for that matter, the revenue potential,” said Dr Ngasamiaku.

Prof Jehovaness Aikaeli, also from the University of Dar es Salaam, said the grace period was a good idea. “This is another way of improving tax collection and boosting businesses in the country, and that means more employment will be created and more taxes will be collected,” he explained.

The executive director of the Tanzania Chamber of Commerce, Industry, and Agriculture (TCCIA), Mr Nebart Mwapwele said the decision was commendable and was based on various studies that urged the government to review taxes for new businesses to encourage formalization and increase tax compliance.

According to him, most small businesses are not registered.

“We are grateful to the government for responding positively to our demands. This decision will increase tax collection, and it will encourage more people to formalise their businesses,” he said.

Business formalization is beneficial to small businesses as it increases their access to credit, technical expertise, and training associated with both domestic and foreign trading, according to Mr Mwapwele. He called on entrepreneurs to take advantage of the opportunity to formalise and expand their businesses.

The national vice chairman of the petty traders association, Mr Steven Lusinde, said that a number of small businessmen, also known as Machinga, have failed to open businesses using official channels due to various restrictions from the Tanzania Revenue Authority (TRA), including the demand to pay taxes immediately after opening.

“In Kariakoo, for example, in order for someone to rent a stall, they have to pay not less than Sh20 million per year in a lump sum to the Tanzania Revenue Authority. This is before they even start operations,” he said.

He thanked President Hassan for supporting small businesses and asked them to use the opportunity to start new businesses that will stimulate economic growth and increase employment.

Published by The Citizen

Tags: Tax
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

World Bank predicts 4% global economic growth, 1.1% for Nigeria in 2021
Economy/Technology

Nigeria’s 3MTT gets boost as EU, World Bank back initiative

June 6, 2025
Energy

PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF

June 4, 2025
Property owners besiege FCT office to pay ground rent
Economy/Technology

FCT ground rent!: Check your name if you own property

June 3, 2025
News

Cracking the Code with Africa’s Creators: Woof Studios Makes History at Cannes Lions 2025 CANNES,

June 3, 2025
Economic implications of Niger coup to Nigeria, ECOWAS
Economy/Technology

IMPI urges media to consider national interest in reporting security challenges

June 3, 2025
Tinubu steering Nigeria away from Venezuela-like tragedy – IMPI
News

Malami’s opposition to Tinubu’s endorsement self-indicting – TDF

June 3, 2025
Next Post
Chamber of Commerce decries poor real estate business

Kenya’s property market blossoms as wealthy investors ditch equities

Nigeria gets AfDB’s $14m as member of ATI

AfDB supports Yobe basin Trust Fund with €362,000 grant

Recommended Stories

Airbus, Boeing in battle for Uganda Airlines order

Airbus, Boeing in battle for Uganda Airlines order

February 14, 2023
NERC declares meters free under mass scheme

Abuja, environ in darkness, AEDC blames poor power generation

March 4, 2022
Scheme to repatriate $200bn in forex requires right mechanisms

FOREX repatriation initiative yields $2.9bn in June

July 20, 2022

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • Nigeria’s 3MTT gets boost as EU, World Bank back initiative
  • PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF
  • FCT ground rent!: Check your name if you own property

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us