Tanzania Vice President calls for tax and procurement reforms to expand the tax base, support SMEs, and enhance investor confidence.
Tanzania Vice President calls for tax and procurement reforms as the nation seeks to address systemic challenges hindering economic growth.
During his presentation at the Taxation and Empowerment Forum on April 15, 2025, in Dar es Salaam, Vice President Dr. Philip Mpango demanded quick policy assessments to create a favorable atmosphere for investment along with business activities.
The Vice President Dr. Philip Mpango pointed out enduring tax governance problems that stem from a limited tax base combined with insufficient financial coverage and illegal money transfers.
The vice president emphasized the need to expand the tax base because the number of active registered taxpayers fell from 3.3 million in 2021/22 to 2.18 million in 2024/25.
During the meeting the Vice President discussed obstacles that small and medium enterprises (SMEs) encounter specifically due to high interest rates and demanding collateral requirements and insufficient intellectual property protection.
He supports changes in procurement practices because large investors receive equivalent treatment as smaller entrants although it harms small business potential.
The external elements Dr. Mpango underscored contained geopolitical disputes and pandemics together with climate change effects that produced supply chain disruption and elevated production expenses.
The Minister of Finance needs to pay existing contractor debts while he also requires complete transparency and consistent practices in tax administration.
Tanzania plans to enact these reforms because they will improve its investment climate and boost local economic development and sustained economic growth.
