THE Confederation of Tanzania Industries (CTI) has expressed strong commendation for the government's recently unveiled Budget.

Hussein Sufiani, the CTI vice-chairman, told reporters yesterday in Dar es Salaam that the Budget was very positive and inclusive owing to intended domestic revenue mobilization and measures aimed at stimulating economic growth.

CTI is highly encouraged by the budget speech, he said, underlining that it demonstrates the government’s dedication to achieving inclusive economic transformation.

This is being pursue with robust domestic resource mobilization and resilient strategic investment, leading to job creation and improved livelihoods, he stated.

"This commitment is clearly reflected in the budget through the government’s initiative of working on the second blueprint for regulatory reforms to improve the business environment, facilitating domestic and foreign investments," he emphasized.

He pointed at the introduction of various reforms to the tax structure, fees, levies and amendments to laws and regulations, asserting that the reforms are primarily aimed at enhancing the broader business environment. 

The proposed changes seek to promote sustainable economic transformation by protecting local industries, enhancing domestic production capacity, and improving the competitiveness of goods in domestic, regional and international markets, he declared.

“Furthermore, these reforms are designed to promote local value addition, reduce dependency on imports, and encourage industrial growth, with the broader objective of creating employment and stabilizing prices amid inflationary pressures,’ he further noted.

The removal of licensing fees amounting to 300,000/- for manufacturers and importers of excisable goods is a positive step, significantly reducing the cost of producing and importing excisable goods, he said.

It is aligned with the need to lower the cost of doing business in the country, he said, noting measures in a three-year excise duty tax calendar set out during fiscal 2023/2024 freezing excise duty increases for that period. 

This decision provides crucial predictability for industries, he said, voicing concerns regarding certain proposals in the Budget, like a proposed amendment to the Excise (Management and Tariff) Act, (Cap. 147), to increase excise duty rates. 

It proposes increase of 20/- per-litre on beer (heading 22.03), 30/- per-litre on wine and other fermented beverages (headings 22.04; 22.05; 22.06), and 50 /- per-litre on spirits, liqueurs and other spirituous beverages (heading 22.08).

"This measure has come as a surprise and is likely to have a significant impact on industries, with increased costs of production affecting company production plans," he stated. 

He was equally apprehensive on the 5.0 percent excise duty on locally manufactured sausages, classified under HS Code 1601.00.00, arguing that the meat sub-sector requires government support to facilitate its growth. Introducing this excise duty will have a negative impact, he said.

“Despite these specific concerns, CTI generally believes that the selected priorities for fiscal 2025/26 will contribute positively to the sustainable development of the country’s industrial sector,” he maintained.

"CTI believes that if the 2025/26 budget is effectively implemented, the government will strengthen domestic revenue collection, sustain economic growth, enhance infrastructure and public services, and ultimately achieve broader economic development.”

“CTI will work hand in hand with the government to achieve the set social and economic goals," he added.