CTI welcomes 2026/2027 budget, flags tax risks

DAR ES SALAAM: THE Confederation of Tanzania Industries (CTI) has backed the 2026/27 national budget, describing it as a step toward improving the business environment.

However, the industry group cautioned that some proposed excise tax changes could increase production costs for manufacturers. CTI Chairman Hussein Sufian told reporters yesterday that the budget seeks to balance revenue mobilisation with measures designed to stimulate economic activity.

“A key highlight of this year’s budget is the introduction of multiple reforms to the tax system, fees, levies and amendments to laws and regulations aimed at enhancing the business environment,” Mr Sufian said.

CTI’s endorsement follows last Thursday’s presentation of the 62.33tri/- budget, which seeks to increase domestic revenue collection while supporting economic growth and industrial development.

The 2026/27 budget represents a 10.3 per cent increase from the 56.49tri/- allocated in 2025/26. The government expects to raise 46.79tri/- from domestic revenue, up 15.6 per cent from the estimated 40.46tri/- in the current fiscal year.

Among the measures welcomed by industry is the planned introduction of a single-window payment system for collecting fees, charges and penalties imposed by regulatory institutions.

The industry group also welcomed the proposed oneyear income tax exemption for newly registered businesses from the date they obtain a taxpayer identification number.

The measures are expected to reduce compliance costs, simplify administrative procedures and encourage business formalisation, particularly among small and medium-sized enterprises.

Mr Sufian said the reforms could support domestic production, strengthen local industries and improve the competitiveness of Tanzanian products in domestic, regional and international markets.

However, he raised concerns over proposed amendments to the Excise (Management and Tariff) Act, including an increase in excise duty on cigarettes by 20/- per mil, the introduction of a 50/- per kilogramme export levy on wheat bran and value-added tax exemptions for garments produced using locally grown cotton.

He said some of the measures could affect production costs and disrupt operations in industries directly impacted by the changes.

The comments reflect the private sector’s broader support for reforms aimed at improving the business climate, while underscoring concerns that tax adjustments should not undermine the competitiveness of local manufacturers.