The government has reaffirmed its commitment to further improve Tanzania’s investment and business environment as part of efforts to stimulate economic growth and strengthen domestic revenue mobilisation.
Deputy Minister for Finance Laurent Luswetula said the reforms are intended to help businesses expand, operate more efficiently and contribute sustainably to national development through voluntary tax compliance.
Mr Luswetula made the remarks while addressing business leaders and entrepreneurs in Mpanda Municipality, Katavi Region.
He said the Sixth Phase Government under President Samia Suluhu Hassan has prioritised policies that revive business confidence and create a predictable, supportive environment for investors and traders.
He noted that a shift towards a more cooperative approach to tax administration has played a key role in improving relations between the government and the private sector.
According to him, the emphasis on dialogue rather than force in tax collection has contributed to stronger revenue performance.
Mr Luswetula said recent figures released by the Tanzania Revenue Authority show the positive impact of the reforms, with tax collections reaching record levels.
He cited December’s revenue performance, when collections exceeded Sh4.13 trillion, the highest monthly figure since independence.
He explained that the growth in tax revenue reflects improved trust between the state and taxpayers, as well as the government’s commitment to ensuring that business-friendly policies translate into tangible economic outcomes.
The deputy minister called on traders and entrepreneurs to continue supporting government development programmes by paying taxes voluntarily.
He stressed that tax revenue remains the main source of funding for key economic and social investments, including roads, education, health services, water supply, energy, railway infrastructure and other strategic projects.
Representing the Katavi business community, regional business association chairman Amani Mahela praised the government for improving the business and tax-paying environment. He said the reforms have eased operations for traders and encouraged compliance.
Mr Mahela, however, urged the government to consider additional measures to further support businesses, including the possibility of waiving tax arrears accumulated over the past five years.
He said such relief would help businesses stabilise and reinvest, particularly in emerging regions.
He added that voluntary tax compliance is closely linked to visible development outcomes, noting that taxpayers are more willing to comply when they see revenues being invested in projects that improve social and economic services.
To further strengthen revenue collection, he called on the government to widen the tax base by increasing the number of registered taxpayers, saying this should better reflect Tanzania’s population of about 62 million.
The meeting highlighted ongoing cooperation between the government and the private sector in building a resilient, inclusive and growth-oriented economy.