Private sector players have high hopes on budget
Dar es Salaam. The Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) has applauded the national Budget tabled in Parliament on Thursday for setting measures to mitigate the impact of the Covid-19 pandemic which has negatively affected the health and business sectors.
TCCIA President Paul Koyi said: “I commend the government for putting in place comprehensive economic response strategies to support businesses and other economic activities during and after the pandemic,” he said.
To mitigate the effects of the pandemic, the government has allowed 100 percent deduction of the contributions made to the Aids Trust Fund for fighting Covid-19 pandemic until the outbreak is declared over.
He referred to the recent government decision to reduce interest rates by the Bank of Tanzania from 7 percent to 5 percent so as to provide more space for commercial banks to borrow from the Bank of Tanzania (BoT) at lower rates - thus making loans cheaper for clients.
Mr Koyi said the abolishment of inspection fees and the reduction of accident investigation fees charged by the Occupational Safety and Health Authority (Osha) and the Fire and Rescue Force was a huge relief for Tanzania’s business community.
The government has proposed the reduction of accident investigation fees charged by Osha from Sh500,000 to Sh120,000 for each expert who conducts investigations.
Other tax reforms indicated in the new budget include exemption of the value-added tax (VAT) on Agricultural Crop Insurance in efforts to reduce cost thus enabling farmers to insure their agricultural crops against unforeseen tragedies such as drought and floods.
The Tanzania Private Sector Foundation’s (TPSF) board chairperson, Angelina Ngalula, expressed optimism for the new budget, saying implementation of the Action Plan for the Blueprint on Regulatory Reforms by the government will improve the business environment in the country.
The budget was tabled in Parliament on Thursday by the minister for Finance and Planning, Dr Philip Mpango. It is the fifth budget in President John Magufuli’s administration.
The government intends to mobilise Sh34.88 trillion to meet its recurrent and development expenditure, including implementation of infrastructure projects; servicing government debt and paying wages and salaries - to mention but a few.
“I thank President Magufuli’s Administration for giving us a budget which focuses on transforming the country’s economy, and supporting local manufacturing industries,” said Ms Ngalula.
She added: “The private sector also commends the Finance minister for acknowledging the private sector’s contributions to the country’s gross domestic product (GDP).”
