DAR ES SALAAM — The Vice President of the United Republic of Tanzania, Dr. Philip Mpango, has reiterated the government’s commitment to creating a more conducive environment for business and investment, saying that the Sixth Phase Government is focused on strengthening peace, security, and a fair tax system to attract both local and foreign investors.
Opening the 2025 Tax and Investment Forum at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam, Dr. Mpango said improving domestic revenue collection is key to delivering better services to citizens and reducing the country’s dependence on donor support.
“Our goal is to build a strong foundation for self-reliance,” said Dr. Mpango. “This calls for fresh ideas and practical strategies to expand domestic resource mobilization so that we can better serve our people and reduce aid dependency.”
He urged participants to use the forum as a platform to propose innovative solutions and called on all Tanzanians to actively contribute their views through both physical attendance and digital platforms.
“Let us take full advantage of the opportunity the government provides every year to submit proposals for improving tax and investment policies,” he said. “Your voice matters, and your ideas can shape policy.”
The Vice President also directed ministers from all sectors to contribute insights on how to raise domestic revenues and ensure that stakeholder recommendations are taken seriously and implemented.
“Sectoral ministers must not only suggest ways to increase revenue but also ensure that such efforts do not stifle growth in their respective industries,” he emphasized.
He outlined a number of key actions needed to increase revenue collection, including enhancing tax administration systems, addressing corruption, eliminating unproductive tax exemptions, and creating incentives for tax agents and institutions.
“We must intensify efforts to make the tax system more equitable and efficient,” said Dr. Mpango. “This includes embracing ICT, building strong taxpayer databases, and increasing the number of taxpayers to ease the burden on existing contributors.”
Despite efforts to strengthen the system, he acknowledged that Tanzania still faces challenges in tax compliance. He pointed out that the tax-to-GDP ratio has increased slowly over the past two decades—from 12.0% in 2001/02 to 14.9% in 2024/25.
“Clearly, we need to do more. I urge this forum to conduct a deep reflection and identify policy, legal, regulatory, and procedural reforms necessary to stimulate investment and business, and revolutionize our domestic revenue system,” he said.
Speaking at the same event, the Minister of State in the President’s Office for Finance and Planning of Zanzibar, Ms. Saada Mkuya, highlighted the government’s progress in creating a better investment climate.
“We recognize the vital role of the private sector in driving our economy,” she said. “Through the Business Environment Improvement Program, we have eliminated or reduced nearly 380 nuisance fees and charges to ease the cost of doing business.”
She added that the government will continue ensuring macroeconomic stability, predictable tax policies, and expanded use of ICT in tax payment systems.
“Digital tools make it easier to pay taxes and conduct business,” Mkuya said. “Our goal is to make compliance as seamless as possible for everyone.”
Angelina Ngalula, Chairperson of the Tanzania Private Sector Foundation (TPSF), echoed the importance of education in expanding the taxpayer base.
“We must continue to educate business owners on the benefits of formalization,” she noted. “When businesses are formalized, they gain access to credit and funding, and the government widens its revenue base.”
Ngalula emphasized the need for government research departments to support awareness campaigns.“It is unacceptable that we still have only about two million registered taxpayers,” she said. “We need to reach more entrepreneurs and help them understand why registration matters.”
The forum brought together government officials, private sector stakeholders, business leaders, and investors. The theme for this year’s event is:
