The government has directed all local government authorities to allocate five percent of their own-source revenue to the development of business infrastructure, in a policy shift aimed at expanding economic opportunities, creating jobs and improving the business environment for entrepreneurs, particularly youth and women.
Prime Minister Dr. Mwigulu Nchemba announced the directive while addressing a public rally at Ingwe Secondary School grounds in Tarime Rural Constituency, Mara Region, on Wednesday, July 1.
The move is expected to help councils develop modern markets, trading centres and other commercial facilities while addressing the persistent shortage of suitable business premises that has constrained small enterprises in many parts of the country.
Dr. Nchemba said the allocation should also be used to acquire strategically located land for business where necessary, instructing the President's Office–Regional Administration and Local Government (Tamisemi) to ensure councils prioritise commercially viable locations instead of relocating traders to areas with limited business potential.
"We have set aside five percent for the construction of business infrastructure. If young people identify land suitable for business, even where it is privately owned, councils should use this allocation to purchase it. We should not send entrepreneurs to remote locations that do not support the type of businesses they operate," he said.
The Prime Minister also unveiled a tax relief measure for new businesses, saying entrepreneurs establishing start-ups will be exempt from paying taxes during their first year of operation to allow them time to grow.
He said the initiative is intended to reduce the burden on small businesses during their early stages, when many struggle with capital constraints and operational costs.
"Young people and women starting new businesses will no longer be required to pay taxes immediately. They will have a one-year tax holiday to stabilise their businesses before tax obligations begin," he said.
In another significant policy announcement, Dr. Nchemba said the government will table amendments before Parliament in August to repeal legal provisions allowing the confiscation of livestock, arguing that the current law has imposed excessive penalties on pastoralists.
He said a government review found that enforcement of the law had, in some cases, resulted in punishments that outweighed the offences committed, undermining the livelihoods of livestock keepers.
"The government has reviewed this law and established that it has impoverished many Tanzanians. In some instances, the punishment has been far greater than the offence.
We will present amendments in the next parliamentary session to remove the provision allowing the confiscation of livestock," he said.
The Prime Minister also directed authorities to end the practice of confiscating citizens' working tools to enforce the payment of fines, saying such actions deprive people of the means to earn income and ultimately make it harder for them to meet their obligations.
"If someone owes a fine, allow them to keep their working tools so they can continue working and pay what they owe. We must stop enforcing the law in a manner that undermines people's livelihoods," he said.
On public accountability, Dr. Nchemba warned against corruption and abuse of office, saying dishonest public officials should be dismissed rather than transferred to other institutions.
"If a public servant steals public resources, do not transfer them. Dismiss them. Tanzania has no shortage of capable people who can serve the nation with integrity," he said.
He concluded by calling on Tanzanians to continue preserving peace, unity and national security, saying political stability remains the foundation for sustained economic growth, investment and improved living standards.
