The Government has said it will continue carrying out a detailed assessment of the 30 percent tax on the export of forest products to ensure it protects local industries while supporting sustainable economic growth.
The Minister for Finance, Ambassador Khamis Mussa Omar (MP), told Parliament in Dodoma that the government is carefully reviewing the effects of the policy before making any final decision on possible changes.
He was responding to a supplementary question from Special Seats MP Timida Mpoki on behalf of Mafinga Urban MP Dickson Nathan Lutevele, who sought to know whether the government would consider revising the tax following concerns raised by industrial stakeholders.
Ambassador Omar said the government introduced the tax after careful consideration, with the main aim of strengthening domestic industries by ensuring availability of raw materials and reducing the export of unprocessed forest products.
He explained that before the policy was introduced, a large volume of forest products was being exported without value addition, a situation that contributed to shortages of raw materials for local factories.
According to him, the intention of the measure was to promote value addition within the country, create jobs, and increase the contribution of the forestry sector to the national economy.
“Before the introduction of this policy, most forest products were exported in raw form, which limited opportunities for local industries to grow and add value,” he said.
However, the Minister acknowledged that the government has begun receiving feedback from different stakeholders, including industrial players, indicating that some factories have been affected by the implementation of the tax.
He noted that medium-scale industries, in particular, have reported challenges in accessing sufficient raw materials, which has in some cases affected production capacity.
“The government has received concerns from stakeholders, especially some medium industries, that the policy has created challenges in raw material supply. We are taking these concerns seriously,” he said.
Ambassador Omar stressed that the government, through the Ministry of Finance in collaboration with the Ministry of Natural Resources and Tourism, is conducting a comprehensive evaluation to understand both the benefits and challenges of the tax.
He said the review will focus on assessing whether the policy is achieving its intended goals of strengthening local industries without negatively affecting investment and employment.
“If it is found that the tax is causing more harm than the intended benefits, the government will not hesitate to make necessary adjustments to protect investment and safeguard jobs,” he assured.
He further explained that the government’s broader goal is to ensure that the forestry sector contributes effectively to industrial development while also promoting sustainable use of natural resources.
The Minister reiterated that strengthening local value addition remains a key priority, as it helps increase income, create employment opportunities, and reduce dependence on raw exports.
At the same time, he said the government is committed to ensuring that policies remain fair, practical, and supportive of both large and small industries operating in the country.
The 30 percent export tax on forest products was introduced in 2025 as part of government efforts to regulate the export of unprocessed materials and encourage local processing.
While the policy has been welcomed by some stakeholders as a step towards industrial growth, others have raised concerns about its impact on production costs and supply chains.
The government has, however, maintained that all decisions will be based on evidence and thorough analysis, with the aim of ensuring long-term benefits for the economy and citizens.
