Finance Minister flags tax relief in Sh62.3 trillion budget
Finance Minister Khamis Mussa Omar speaks during a briefing with journalists on the direction of the 2026/27 national budget at the Kambarage Hall, Treasury Square, in Dodoma, June 10,2026. PHOTO | COURTESY
Dar es Salaam. Finance Minister Khamis Mussa Omar has indicated that the 2026/27 national Budget will include targeted tax relief measures alongside reforms aimed at expanding the tax base and improving revenue collection efficiency.
Briefing journalists in Dar es Salaam ahead of his Budget presentation in Parliament on Thursday, June 11, 2026, Mr Omar said the government is pursuing a balanced approach that supports economic growth while strengthening fiscal sustainability.
He said the upcoming Budget has been prepared through broad consultations involving government institutions, the private sector, civil society, academia and individual taxpayers, resulting in 727 proposals on tax, legal and administrative reforms.
According to him, 125 proposals were accepted in full, 121 were accepted with modifications, 295 were rejected, while 107 were referred for further technical review.
A further 47 lacked sufficient data for decision-making, and 32 are at various stages of implementation.
Mr Omar said the review process was guided by the Tax Reforms Taskforce and a high-level technical “think tank” comprising experts from government, research institutions and the private sector.
He said the engagement was aimed at ensuring that tax policy reforms reflect national priorities while improving fairness, efficiency and compliance within the tax system.
“The objective is to widen the tax base while also reducing unnecessary burdens on taxpayers and improving the business environment,” he said.
Mr Omar confirmed that the government will introduce measures aimed at simplifying tax administration, strengthening compliance and improving revenue collection systems.
At the same time, he said, the Budget will provide room for targeted tax reliefs designed to ease pressure on households and businesses, particularly in priority sectors of the economy.
He added that the government remains committed to reducing multiple taxation, improving predictability in the tax regime and encouraging investment to support job creation.
The Finance Minister said the 2026/27 Budget is being prepared under the framework of the Tanzania Development Vision 2050, the Fourth Five-Year Development Plan and the CCM Election Manifesto 2025, making it a key policy instrument for long-term transformation.
He said priority expenditure will continue to focus on strategic infrastructure projects, including the Standard Gauge Railway (SGR), roads, water systems, energy and human capital development.
Mr Omar urged taxpayers to meet their obligations, saying voluntary compliance remains critical to financing national development priorities.
“Nation-building requires shared responsibility. As government improves systems and reduces burdens, citizens must also play their part by paying taxes willingly and on time,” he said. (For more budget coverage, read pages 11, 12 and 13)
