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Student's Book Form Five

Through the vision, the government of These overarching policies give rise to
Tanzania anticipates to attract private numerous other regulations and strategies
sector investments which are vital to the for promotion of investment in Tanzania.
future growth and productivity of the The following are key areas covered in the
economy. Thus, the vision details how various policy and strategies for promotion
the government undertakes to alleviate of investment in Tanzania:
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constraints to private sector participation Tax incentives: A tax incentive is an aspect
in the desired industrialization and of government policy that lowers the
socio-economic transformation. These amount of tax that individuals or businesses
activities include providing appropriate owe in order to encourage certain activities
guidance to the private sector and all or achieve specific goals. The government
other stakeholders, investing in ways that of Tanzania offers various tax incentives
leverage the participation of the private to medium-sized businesses to encourage
sector, making limited smart interventions, investment and stimulate economic growth.
as necessary in areas that are important These incentives include tax holidays,
for Tanzania’s development and nurturing reduced corporation tax, and exemptions
collaborative action, and effective state- from income tax, export and import duties,
business relations. and Value-Added Tax (VAT) on certain

The National Investment Promotion products. Several laws and regulations
Policy provide room for tax incentives such as

The National Investment Promotion the Zanzibar Investment Promotion and
Protection Act No. 14 of 2018, the Value
Policy of 1997 was established with Added Tax Act Cap 148 revised edition of
the objectives of supporting maximum 2019, the Income Tax Act Cap 332 revised
mobilization and utilization of domestic edition of 2019, and the East African
capacity including cooperation with other Community (EAC) Customs Management
countries, promotion of export orientation Act of 2004 and its amendments. By
on domestic production of goods and reducing the tax burden on medium-sized
services to enhance the development of enterprises, these incentives aim to enhance
the export sector, encouragement of inflows their competitiveness, attract investment,
of external resources to complement and facilitate business expansion.
national efforts, encouragement and
facilitation of the adoption of new Investment guarantees: An investment
technologies, and enhancement of guarantee is a form of financial protection
transparent legal framework that facilitates that is offered by governments to investors
the promotion and gives due guarantee to safeguard them against potential losses.
of protection to all forms of investment The Tanzanian government provides
activities. investment guarantees to medium-sized

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