RULING party CCM has congratulated the government for presenting 2023/2024 budget estimates, which are expected to impact people’s lives by further opening up economic opportunities and creating a friendly business-investment environment.
Speaking to the residents of Kingiti Village, Mpwapwa District of Dodoma Region on Friday, CCM Secretary General Daniel Chongolo said the national budget carries with it the government’s sincere commitment to build the country’s economy, which was shaken due to the Covid-19 and Ukraine-Russia war.
“As you are aware, the big challenge of Covid-19 hit our nation and the entire world three years ago. The pandemic brought the world to a standstill but Tanzania was fortunate not to have gone to a lockdown, which allowed life to go on,” he said.
Mr Chongolo said CCM congratulates the government for a good budget because it is going to touch the lives of ordinary citizens.
He said the goals and objectives of the budget are first to focus on protecting local industries, an issue that is fundamental to the development of any country in the world.
“That is a very fundamental goal, and the government’s mission will enable us to increase employment in the country, the incentive for investors to bring their capital and invest in industries and propel the nation’s economy,” said Mr Chongolo.
He added: “If more industries are constructed here, if we produce goods, and then export them, we will raise more foreign exchange, which is good progress.”
In addition, Chongolo said some of the important areas that the budget has touched include the issue of abolishing tuition fees for students pursuing national prioritised courses, a decision that will stimulate the availability of middle cadre professionals.
He said many professional jobs are done by intermediate technicians, which means the government decision will prepare many professionals that will fill the middle cadre gap, he further said the government’s decision aims to create more independent young people than those waiting to be employed.
He said another area that affects people is the removal of mobile money transaction levy on sending and receiving money electronically, which he also said will increase the opportunity for people to use the mobile money services more.
On her part, CCM Ideology and Publicity Secretary, Sophia Mjema said the government’s budget is going to liberate Tanzanian women especially due to the 1tri/- being directed to the implementation of water projects.
Presenting government budget estimates for 2023/24 financial year in the National Assembly on Thursday, the Minister for Finance and Planning, Dr Mwigulu Nchemba said the government intends to introduce an excise duty rate of 30 per cent on cigarettes and other tobacco products including water tobacco, electronic cigarettes, vape products and shisha and increase excise duty rate on imported energy drinks from 589.05 to 600/- per litre.
He said excise duty on beers and tobacco products would be increased by 20 per cent and duty rates for non-petroleum products would be increased by 10 per cent.
The minister said the government intends to raise Value Added Tax (VAT) registration threshold from 100m/- to 200m/- and gradually increase it to 500m/- to enhance administrative efficiency and promote voluntary tax compliance.
He said the government would also extend Value Added Tax (VAT) exemption on sale and lease of aircraft, aircraft engine or parts by a local operator of air transportation.
The finance minister said the government intends to introduce excise duty at the rate of 20 per cent on imported and domestically manufactured gambling machines and increase gaming levy from 10,000/- to 30,000/- per slot machine in bar sites (clubs/places selling liquor).
It has also planned to reduce the tax rate from 25 per cent to 18 per cent on gross gaming revenue (GGR) for Forty Machines Site operations.
