CTI backs budget, welcomes business reforms

DAR ES SALAAM: THE proposed budget signals a clear commitment to inclusive economic transformation through domestic resource mobilisation and strategic, resilient investment, the Confederation of Tanzania Industries (CTI) said on Monday.

CTI’s support follows the presentation of the 2025/26 national budget last Thursday, which has been widely seen as a progressive step toward economic transformation.

The confederation also pledged its support for the government’s economic vision outlined in the Third Five-Year Development Plan.

CTI Chairman Mr Hussein Sufian (pictured) said the budget reflects a strong intention to enhance the business environment by striking a balance between domestic revenue collection and economic stimulus measures.

“A key highlight of this year’s budget is the introduction of multiple reforms to the tax system, fees, levies and legal frameworks—all aimed at improving the business climate,” Mr Sufian told reporters.

The country’s budget for 2025/26 has been set at 56.49tri/-, an increase of 12.3 per cent compared to 50.29tri/- in 2024/25. The government expects to collect 40.46tri/- from domestic revenue, indicating a 16.9 per cent increase compared to the estimated 34.6tri/- in 2024/25.

ALSO READ: Ambassador Matinyi means business in Sweden

Among the welcomed reforms, the chairman said, is the removal of the 300,000/- licensing fee for manufacturers and importers of excisable goods.

The move is expected to reduce production and importation costs, aligning with the government’s goal of lowering the overall cost of doing business in the country.

He said the proposed reforms are designed to promote sustainable economic transformation by protecting local industries, enhancing domestic production capacity and increasing the competitiveness of the country’s goods in local, regional and international markets.

However, Mr Sufian expressed concern over a proposed amendment to the Excise (Management and Tariff) Act, which includes increasing excise duty rates by 20/- per litre on beer, 30/- per litre on wine and other fermented beverages and 50/- per litre on spirits and liqueurs.

He said this move could significantly impact the cost of production and disrupt the operations of affected industries. He also urged the government to reconsider a proposed 5.0 per cent excise duty on locally manufactured sausages, cautioning that it could stifle growth in the emerging processed food sub-sector unless adequate support measures are introduced.

CTI Director of Policy and Advocacy Mr Akida Mnyenyelwa said the government had responded positively to the confederation’s proposals, particularly those seeking tax exemptions aimed at protecting local industries.

He said that out of 70 proposals submitted by the confederation, the government incorporated 56—equivalent to 80 per cent—into this year’s national budget.

He said this level of consideration is a testament to the government’s commitment to fostering a supportive environment for industrial growth and long-term economic development.