ZANZIBAR President Dr Hussein Ali Mwinyi yesterday met with the Presidential Commission on Tax Reforms at the Zanzibar State House for an introductory discussion on Union tax issues.

Commission’s delegation which was led by chairman ambassador Ombeni Sefue, engaged in discussion on tax reform proposals that will be presented to both the Zanzibar and Union governments.

During the meeting, President Mwinyi expressed his gratitude to President Samia Suluhu Hassan for appointing the Commission, emphasising that the proposed reforms would strengthen and transform the tax systems in both governments, ultimately improving business operations and tax-related matters.

The Commission also met with First Vice President Othman Masoud Othman, who explained that the current tax system in the country allows for a proliferation of multiple taxes managed by different authorities.

Othman noted that the existence of these multiple tax authorities not only creates significant inconvenience for businesses but also poses a major challenge that the Commission must address, particularly in key sectors like air transport and agriculture.

He stressed the need for a simplified tax system to improve efficiency and business operations in Tanzania, highlighting the importance of reviewing tax structures in critical sectors like agriculture. Such reforms, he emphasised, would ensure resources are invested effectively, contributing to the country's economic development.

Othman pointed out that the current tax framework could lead to business closures, not only because of difficulties in fully paying taxes but also due to the financial strain on businesses trying to maintain operations.

 On air transport, Othman noted that while Tanzania has several airlines offering numerous job opportunities, the sector still requires tax reforms to improve efficiency and benefit the country. He also remarked that air transport has become largely accessible only to the wealthy and reform is necessary to foster growth in the sector.

He recommended that Tanzania adopt a tax system tailored to its specific context, as done in other countries, to aid tax collection and contribute to economic growth. Othman also suggested reducing the number of tax authorities to eliminate inefficiencies caused by multiple institutions, which would support business growth.

Ambassad Sefue explained that the Commission’s mandate is to consult with stakeholders, review the entire tax system, and propose improvements. He stated that these proposals would help streamline the tax system and create a more favourable business environment in Tanzania.

The Commission, established by President Samia Suluhu Hassan and launched on October 4 this year, is tasked with reviewing the entire tax system, including management, tax authorities, communication, standards, and the significance of taxes.