TPSF Director of Policy Gili Teri made the remarks in Dar es Salaam this week during the 32.5trillion/- 2018/19 budget review session organised jointly by the foundation and Deloitte East Africa Company.
According to him, the government has been struggling to finance the budget through internal revenue collections something he said could be attained by broadening the tax base.
“All in all, TPSF commends the 2018/19 budget and the government’s efforts that aim at increasing industrial production and enabling the sector contribute towards economic growth, job creation and poverty alleviation. However we are calling on the government to continue working go the area of formalising informal business which covers a huge part of the sector,” he said.
Teri also added that formalisation of informal businesses will not only contribute towards economic growth but also decrease the tax burden.
A Tax expert from Deloitte Tanzania Festo Bathoromeo said some tax reforms in this year’s budget will have positive impacts especially in the manufacturing sector, something that will lead to the increase of domestic production.
He however, warned that the increase of excise taxes on beverages and cigarettes every year would lead to the decline in certain imported products like soft drinks and furniture.
Bathoromeo also said that VAT exemption on imported vegetable oil, textiles, pharmaceuticals and leather would bring impact to the locally produced goods as they will not compete in the markers.
TPSF Executive Director Godfrey Simbeye in his speech said that the foundation, since its establishment 20 years ago, has dedicated itself to the improvement of business environment and overall social-economic development of the country.
TPSF he said engages the government in policy advocacy through dialogues on fiscal reforms throughout the year.
He said that through stakeholder engagements and coordination, TPSF will continue to provide the private sector with a consistent and uniformed voice that can hardly be ignored.