Why business community is optimistic about new budget

Dar es Salaam. The 2019/2020 national budget, tabled in Parliament Thursday by Finance and Planning minister Philip Mpango, is a win-win for all, the business community has said, urging the government to ensure full implementation.

At a post-budget analysis organised in Dar es Salaam by audit firm Deloitte economic analysts were unanimous that the budget could go a long way in opening up more opportunities for start-ups.

But they were quick to point out that it all depends on full implementation, and continuous engagement between government and the private sector.

The chairman of the Chief Executive Officer Roundtable (CEOrt), who doubles as CEO of Standard Chartered Bank, Mr Sanjay Rughan, said the abolition of 54 fees and levies is a welcome development that would go a long way in attracting new businesses and investments.

“The removal of the levies will reduce operational costs and stimulate the local and international markets. This will attract more new business start-ups and foreign investments,” he said.

He was also happy with the decision by the government to establish the Office of the Tax Ombudsman in the Ministry of Finance and Planning for receiving and resolving information and complaints from taxpayers on tax administration, including corruption and unfair closures of businesses by tax officials.

“At least we have a platform where we can relieve our pains when mistreated by the taxman. This is a good move,” he said.

Mr Erastus Mtui, a board member of the Confederation of Tanzania Industries (CTI) and Coca-Cola Kwanza finance director, said that the budget renewed hope for “a brighter future”. He also noted that it also opened doors for more businesses and investments.

He cited the reduction of corporate income tax for new investors involved in the production of sanitary pads, from 30 to 25 per cent, as a move that attract investment.

“The budget is viable and realistic as far as supporting the private sector is concerned; it aims at bringing in new businesses while at the same time protecting and expanding existing ones,” he said.

However, he was also quick to say that Dr Mpango’s financial plan is just the beginning of a long journey to ensuring a desired environment for doing business in the country.

Mr Dmirty Logunov, a partner at Deloitte, concurred. He said the government had now started its journey to industrialisation. “This is a good start, so let’s give the government time,” he said.

According to him, the next budget (2020/21) will give a clear picture of the journey.

Mr Gilead Teri, an economic analyst, said the 2019/202 national budget is key to the successful implementation of the Blueprint, which is aimed at improving the business environment.

According to him, the decision to separate the mandates of the Tanzania Food and Drugs Authority (TFDA), the Tanzania Bureau of Standards (TBS) and Government Chemist Laboratory Authority (GCLA), is also a good start.

“After more than two years of drafting the Blueprint, the commitment of the government to start implementing gives me hope,” he said.