Tanzania’s tax-to-GDP ratio soars to 14pc in 2024/25

DAR ES SALAAM: VICE President Dr Phillip Mpango said the tax-to-GDP ratio remains low, rising from 12.0 percent in 2001/02 to 14.9 percent in 2024/25, despite good progress in tax collection, and called for more systemic and policy-driven action.

Speaking at the opening of the 2025 Tax and Investment Forum, held at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam, Dr. Mpango emphasized that a stable and transparent tax regime is a key driver of economic growth and public welfare.

He urged participants, including stakeholders from both public and private sectors to develop strategic approaches for increasing domestic revenue, enabling the government to deliver better services to citizens and reduce reliance on foreign aid. He further directed ministers across various sectors to actively contribute ideas through open discussions and digital platforms aimed at expanding national revenue streams.

VICE President Dr. Philip Mpango has reiterated the Sixth Phase Government’s commitment to enhancing Tanzania’s business and investment environment by strengthening security, maintaining peace, and ensuring a fair and equitable tax system.

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Highlighting ongoing tax reforms, the Vice President outlined several initiatives by the government, including the increased use of ICT in tax collection, the development of a comprehensive taxpayer database, and the reduction of non-productive tax exemptions.

Meanwhile, Minister of State for Finance and Planning (Revolutionary Government of Zanzibar), Saada Mkuya, reported that the government has already scrapped over 380 nuisance charges and continues to expand the use of digital platforms to simplify tax payment processes.

Also speaking at the forum, Chairperson of the Tanzania Private Sector Foundation (TPSF), Angelina Ngalula, stressed the importance of tax education among both small and large-scale business owners to help broaden the taxpayer base. Currently, Tanzania has approximately two million registered taxpayers, a figure she noted is still low relative to the country’s economic potential.

The forum aims to generate actionable insights for increasing revenue, improving tax efficiency, and attracting sustainable investments to drive national development.