Over the years, CTI has spearheaded constructive dialogue with Government authorities to ensure that the interests of industries and the broader business community are protected. Engagements with the Government have focused on key areas, including taxation, legal and regulatory affairs, infrastructure, and regional and multilateral trade agreements, all aimed at ensuring that our industries operate within a competitive business environment. Despite various challenges, CTI has successfully influenced Government decisions in several areas and continues to do so, including, among others:
1.0 TAXATION
In the area of taxation, CTI submitted a number of proposals to the Task Force on Tax Reforms and is pleased to note that several of them were successfully adopted. The proposals approved for inclusion in the 2025/26 national budget are outlined in Appendix 1.
1.1 High Import Duty
High import duties have significantly increased production costs. CTI has remained committed to assisting its members in obtaining duty remissions on imported raw materials, industrial inputs, and a stay of application for finished goods. These efforts aimed to reduce production costs and enhance the competitiveness of local manufacturers. However, members have reported prolonged waiting times for signing the Performance Agreement from the Ministry of Finance. CTI advocates that the process of the performance agreement be implemented online to ensure time and its associated costs.
1.2 High Costs of Electronic Tax Stamps (ETS)
The Government introduced Electronic Tax Stamps (ETS) on excisable goods to replace physical paper stamps, which were heavily associated with tax evasion and curbing counterfeit goods. This initiative is part of broader efforts to strengthen tax administration in the country. However, the costs of implementing ETS remain very high. CTI has consistently engaged the Government to address this matter, advocating for further reduction in ETS charges to ease the burden on consumers and enhance the competitiveness of local industries.
1.3 Excise Duty
On Excise duty, as a measure to protect local industries and employment creation, CTI was successfully able to advocate for the reduction of excise duty on locally and imported undenatured ethyl alcohol, the introduction of 10% excise duty on imported soaps, as well as the reduction of excise duty on locally manufactured energy drinks.
1.4 Value Added Tax
CTI has successfully able to advocate for the protection of textile products (fabric and garments) made from locally grown cotton by Zero-rating Value-Added Tax for a period of one year and locally produced fertilizers for a period of three years. Also, the locally processed edible oil using locally grown seeds was exempted from Value Added Tax for a period of one year.
1.5 Export Levy
CTI has been advocating for local value addition. In order to safeguard domestic producers of wood products and discourage the export of raw materials, and promote local value addition, the Government introduced an export levy of 30% or TZS 150 per kilogram, whichever is higher, on wood veneer products.
2.0 LEGAL AND REGULATORY AFFAIRS
Manufacturers in Tanzania have long faced escalating operational costs due to numerous levies imposed by both Local Government Authorities and Government institutions. These charges create barriers to industrial competitiveness and sustainable growth. CTI will continue to advocate reduction of fees and levies charged, as well as simplify the ease of complying with regulatory authorities.
2.1 Reduction of Service Levy 0.3% of Gross revenue
Recognizing this challenge, CTI has actively advocated for the reduction of levies charged by local government. And other regulatory authorities. Through sustained engagement with policymakers, CTI pushed for reforms that would ease the fiscal burden on businesses, particularly industries. Following consistent engagement, this time the Government agreed to reduce the Service Levy from a variable cap of 0.3% of gross revenue to a fixed rate of 0.25%. This adjustment provides greater predictability for businesses and relief to manufacturers.
2.2 Cap on Interest Charged on Fines by OSHA
In order to promote fair and proportionate penalty structures that do not financially cripple businesses while still ensuring compliance with occupational safety standards, CTI has actively engaged with the government and proposed reforms that aim at reducing operational costs, enhancing fairness in enforcement, and protecting local industries. The Government made an amendment to cap interest on fines at 100% of the original amount. This replaced the previous punitive daily interest rate of 5% per day, which had placed an excessive burden on manufacturers.
2.3 Overlapping and Conflicting Enforcement between TBS and WMA
Members in the iron and steel sub-sector have been facing a challenge due to overlapping and conflicting enforcement by the Tanzania Bureau of Standards (TBS) and the Weights and Measures Agency (WMA). While TBS sets product standards, including the allowed diameter tolerance for iron bars, WMA regulates measurement instruments, not product dimensions. WMA inspectors often interpret or enforce product tolerances, leading to contradictory inspection results and rejection of reinforced bars that comply with TBS standards. As a result, manufacturers are negatively affected by increased compliance costs and delays in production and distribution. CTI will continue engaging the Government to ensure that the matter is resolved.
2.4 Engagement with Tanzania Bureau of Standards (TBS)
Delays in the issuance of licenses and permits have significantly impacted industrial operations and market access, created inefficiencies, and limited competitiveness. To address these challenges, CTI continued to engage with the Tanzania Bureau of Standards (TBS) throughout 2025. Recognizing the importance of timely regulatory processes, CTI and TBS established quarterly consultative meetings aimed at identifying bottlenecks in licensing and permit issuance as well as developing practical solutions to streamline processes.
2.5 PVoC Exemptions
CTI has continued to assist its members in securing exemptions from Pre-shipment Verification of Conformity to Standards (PVoC) requirements administered by the Tanzania Bureau of Standards (TBS). This service has been particularly beneficial to members importing raw materials, machinery, and spare parts for industrial use, ensuring that essential inputs for production are not delayed or burdened by unnecessary costs. CTI successfully facilitated the issuance of more than 200 PVoC exemptions by TBS. These exemptions reduced operational expenses and enhanced efficiency across the manufacturing sector.
2.6 Combating Illicit Trade
Illicit trade creates unfair competition with genuine domestic goods, which includes counterfeit goods, under-invoicing/declared goods, and smuggling goods, etc. Industries in the countries are highly affected by the illicit trade. The growth of illicit trade has led to unfair market competition, loss of government revenue, and pressure on local pricing. These practices undermine the integrity of Tanzania’s industrial economy and threaten the sustainability of legitimate businesses.
To address this, CTI, in collaboration with its members have continued to raise concerns with the Fair Competition Commission (FCC) and the Tanzania Bureau of Standards (TBS) regarding the high rate of smuggling and circulation of substandard products. CTI has sought government intervention through the Ministry of Industry and Trade to address the matter.
2.7 Container Loading and Offloading Fees
Manufacturers were heavily burdened by the imposition of loading and offloading fees in some municipal and city councils, which ranged from TZS 150,000 to TZS 300,000 per container. These charges added substantial costs to industrial operations, particularly for businesses dependent on frequent cargo movement, thereby undermining competitiveness and efficiency. Recognizing the adverse impact, CTI formally presented the matter to the Government, emphasizing how these fees were eroding manufacturing competitiveness and operational sustainability.
Under the Local Government Act and Finance Act 2025, the loading and offloading fees were officially removed. This reform has eliminated a significant cost barrier, reducing operational expenses for manufacturers.
3.0 INFRASTRUCTURE
CTI has remained active in advocating for improvements in roads, railways, electricity, and ports, recognizing that strong infrastructure is essential to enhancing the competitiveness of Tanzanian industries. CTI commends the Government's efforts made to develop the infrastructure.
3.1 Power Supply
While CTI commends the Government for the good work it has done to ensure power generation, an unreliable power supply has continued to directly affect production efficiency, job creation, and investor confidence. In response, CTI is committed to amplifying manufacturers’ concerns and working closely with Government institutions to find practical and balanced solutions that strengthen industrial growth and sustainability. Stable and affordable electricity remains a cornerstone for industrial growth.
3.2 Ports
CTI commends the Government for its continued investments in expanding port capacity, upgrading cargo‑handling systems, and easing congestion. While these improvements have increased cargo volumes, manufacturers are still facing delays and high logistics costs. These challenges disrupt supply chain reliability, raise production expenses, and weaken the competitiveness of locally manufactured goods.
CTI remains committed to working closely with the port authority, regulatory agencies, and the Government to champion reforms that enhance efficiency, transparency, and predictability across the logistics chain. Strengthening port performance is vital to driving industrial growth, boosting exports, and positioning Tanzania as a competitive and reliable trade hub in the region.
3.3 Railways
CTI commends the Government for its substantial investments in constructing the Standard Gauge Railway (SGR) and upgrading the old railway network. These strategic improvements have significantly enhanced connectivity, reduced travel times, and lowered the cost of bulk transportation compared to road haulage.
3.4 Roads
Despite the achievements in infrastructure development, manufacturers continue to face challenges such as deteriorating feeder roads, congestion in major industrial zones, and delays caused by road maintenance gaps. Poor road conditions increase vehicle operating costs, disrupt supply chains, and reduce the competitiveness of locally manufactured products. CTI remains committed to working with the Government and other stakeholders to advocate for sustained investment in road maintenance, improved access to industrial clusters, and better traffic management in key economic hubs.
4.0 REGIONAL AND MULTILATERAL TRADE AGREEMENTS
Through its active engagement in strengthening Regional Integration, the East African Community and the Southern African Development Community (SADC), and the ongoing implementation of the African Continental Free Trade Area (AfCFTA), the Confederation of Tanzanian Industries (CTI) has played a pivotal role in regional and multilateral trade negotiations. CTI’s advocacy has ensured that the perspectives of Tanzanian manufacturers are represented, influencing partner states to adopt positions that safeguard local industries.
5.0 CAPACITY BUILDING PROGRAMS
Manufacturers have reported low productivity due to insufficient skills and knowledge among employees. In response to this growing skills gap, CTI intensified its efforts in 2025 to equip members with the competencies needed to boost productivity and remain competitive in a rapidly evolving business environment. Key Trainings, Workshops, and Seminars Organized:
• Sensitization Workshop on Gender Inclusion in the Manufacturing Sector
• Awareness Workshop on Competition, Consumer Protection, and Counterfeit Goods Regulation
• Training on Responsible Business Conduct (RBC) and EU-Export Readiness
• Workshop on Circular Economy and Industrial Waste Management
• Training for Transport/Logistics Officers on Road Safety, Regulations, and Laws
• Training on Navigating Tax Disputes and Finance Act 2025 Reforms.
6.0 ONGOING ADVOCACY ISSUES FOR 2026
This year, CTI will continue its advocacy on the following issues, among others:
• Further Reduction of Electronic Tax Stamps (ETS) by 40% of the current charge.
• Advocating for the reduction/removal of fees, levies, and taxes that increases cost of doing business.
• Combating and curbing the illicit trade of industrial goods.
• Improving the quality of power supply to industries.
• Improving the port efficiency.
• Address challenges that arise from overlapping and conflicting regulatory enforcement.
• Retention of the three-year tax calendar for excisable products to ensure a predictable business environment.
• Review the Mining Act to exclude industrial minerals from precious minerals.
CTI BREIF REPORT 2025