Dar es Salaam — Former chairman of the Business Community Association Johnson Minja said if Tanzania is to achieve the middle income status come 2025, some unresolved challenges impeding businesses must be addressed.
Mr Minja cited some of the challenges as unfavourable tax regime, policy unpredictability and bureaucracy. Mr Minja made the remark yesterday when he toured Mwananchi Communications Limited offices at Tabata Relini.
According to him should such challenges be solved, the economy of the country will undergo transformation within a short time.
Going by the figures released by the minister for Finance and Planning, Dr Philip Mpango, as he was tabling the budget for his docket in the parliament recently, last year's economic growth rate stood at 7.1 per cent compared to seven per cent recorded in the preceding year.
For the country to attain the middle income status, its economic growth should range from eight to 10 per cent. To attain that, the government should be consistent in its policies, a move that will boost business confidence and encourage the all-important process of job creation and investment.
He also called for harmonisation of regulatory authorities like the Tanzania Bureau of Standards and Tanzania Food and Drugs Authority to reduce a number of charges issued to businesses.
Mr Minja said there was a need to widen the tax base to reduce the burden on current tax payers and attract more investors who would spur economic growth rate. According to him, the financial policy should be in favour of the investors as part of wider efforts to encourage sustainable industrial growth.
"Enough is enough for hard-pressed tax payers. Let's give them a break," noted Mr Minja.
He warned that shifting burden to a few Tanzanians who have registered their businesses and companies which have dedicated to paying taxes, may result into scaring away investors.