Cassian & Associates, a member firm of MGI Worldwide accounting group in the MGI Africa region, share their insights on the 2019/2020 Tanzania budget
Tanzania-based MGI Worldwide accountancy network member firm, Cassian & Associates, has published a new report detailing the tax highlights of the Tanzanian budget speech as presented by the Minister of Finance, Hon. Phillip Mpango (MP).
The Tanzanian Economy
The United Republic of Tanzania is the tenth largest economy in Africa and the second largest in the East African Community. Based on information about Tanzania supplied by the World Bank, the country has sustained relatively high economic growth during the past decade, averaging between 6-7% each year.
2019/2020 Budget Targets
Targets have all been set in line with a moderate rise. GDP Growth is planned to increase from 7.0% to 7.1%, with domestic revenue rising from 14.3% to 15.8% as a percentage of GDP. Tax revenue is also expected to rise from 12.1% to 13.1%, with government expenditure increasing from 21.6% to 22.7%.
VAT Changes
The country is largely dependent on agriculture for employment, accounting for approximately half of the employed workforce. Proposed VAT changes, including an exemption on grain drying equipment and the import of refrigeration boxes, has been made to further promote horticultural farming, while restriction on the exports of raw agricultural products has also been removed.
Changes to administrative tax measures
Tax payers who had already applied for amnesty have has a 6-month extension granted, taking the original date of June 30th 2019 to December 31st 2019. Further administrative tax measures include establishing an independent ‘Office of Tax Ombudsman’ and a relief period of 6 months for the initial assessment for all TIN numbers, to enable businesses to take the necessary preparations during the initial period of starting a business.
Abolished fees
Perhaps the biggest changes come in the long list of abolished fees. These include various charges that were previously imposed by the Tanzania Bureau of Standards (TBS), the Government Chemist Laboratory (GCLA), and the Ministry of Livestock and Fisheries.
Cassian & Associates hope that their insights provide a useful overview of the Tanzanian Budget.
You can access the Tanzania Budget 2019/2020 report HERE.
For further information visit the firm’s online profile page or their firm website.
MGI Africa is part of MGI Worldwide, a top 20 ranked global accounting network with some 5,200 independent auditors, accountants and tax experts in over 260 locations around the world.