The Minister for Finance and Planning Hon. Mwigulu Lameck Nchemba delivered the National Budget Speech on 13 June 2024 with the theme ‘Realising competitiveness and industrialisation for human development’.
The Budget has been prepared based on the following macroeconomic targets: an estimated real GDP growth of 5.4% in 2024, containing inflation at a single-digit range of between 3% and 5% in the medium term, achieving domestic revenue collection of 15.8% of the GDP in 2024/2025, attaining tax revenue collection of 12.6% of the GDP in 2024/2025, an estimated deficit of below 3% of the GDP, and maintaining foreign exchange reserves sufficient to cover at least four months of imports of goods and services.
The key proposed measures in this year’s Budget include:
- deductibility of expenditure for income tax purposes to be supported by fiscalised receipts;
- proposed increase in the value of 1 currency point from TZS 15 000 to TZS 20 000;
- non-applicability of Alternative Minimum Tax for tea processing businesses;
- VAT refund to be made within 30 days of application;
- applicability of 0% VAT on sale of gold to the Bank of Tanzania;
- introduction of 10% excise duty on gaming stake and advertisement fees;
- increase in Railways Development Levy from 1.5% to 2% of the CIF value; and
- introduction of Industrial Development Levy on selected imported goods.
Click here to download our detailed analysis. This analysis does not cover changes that were proposed in the written version of the speech but were not covered by the Minister in his speech.
