President Her Excellency Dr. Samia Suluhu Hassan has set Tanzania on a path toward a modern, service-oriented tax system, receiving today the report of the Presidential Commission on Tax Reforms at State House.
The landmark move aims to make taxation fairer, simpler, and more supportive of business growth while boosting domestic revenue.
Speaking at the event, President Samia said the Commission was established to address longstanding concerns from citizens, investors, businesses, and development partners about the country’s tax system.
She noted that nearly 35 years have passed since the last major review by the Mtei Commission, stressing the urgency of updating the system to reflect today’s economic realities.
“The reforms we are undertaking are central to achieving Tanzania’s Vision 2050,” President Samia said.
She explained that the Vision relies on public revenue contributing 22 percent, the private sector 70 percent, and public institutions 8 percent. “The private sector must be empowered to grow and create jobs,” she emphasized.
President Samia praised the Tanzania Revenue Authority (TRA), other institutions, and citizens for supporting domestic revenue mobilization through voluntary compliance. She also called for broader participation in the formal economy and the unlocking of untapped revenue potential.
Highlighting the government’s commitment, President Samia affirmed that all 284 recommendations from the Commission will be implemented.
“I have listened carefully to the Commission’s proposals. We will act,” she said, adding that a structured implementation plan covering the short, medium, and long term will be developed with key stakeholders.
“Change is necessary. Even a snake sheds its skin. We too must evolve,” she remarked, underscoring the scale and urgency of the transformation.
The reforms aim to establish a tax system that is fair, predictable, easily understood by taxpayers and administrators, encourages business growth, and ensures sustainable revenue collection. The government targets raising the tax-to-GDP ratio to 18 percent.
Ambassador Ombeni Sefue, Chairperson of the Commission, presented the report, noting that the tax system must meet citizens’ expectations and align with evolving economic realities.
He highlighted systemic challenges such as high tax burdens in certain areas, weak dispute resolution mechanisms, fragmented institutional coordination, and a narrow tax base.
“We need a tax system that broadens the base and ensures everyone contributes according to their income in a simple, transparent, fair, and equitable manner,” he said.
Ambassador Sefue cautioned that without reforms, Tanzania risks continuing to collect taxes from a limited group, often in a burdensome way.
He stressed the importance of balancing revenue mobilization with economic growth, saying, “We cannot harvest without planting; nor can we milk cows without feeding them.”
The Commission estimates that full implementation of its recommendations could increase government revenue by TZS 11.025 trillion within three years and raise the tax-to-GDP ratio to 18 percent.
President Samia concluded by urging coordinated action from government institutions, the private sector, and citizens.
“Successful reform requires collective commitment to build a modern, efficient, and service-oriented tax system,” she said.
The government will develop a phased implementation strategy in consultation with stakeholders.
