Monday, 16th June 2025 in Dar es Salaam
The Government Budget for the fiscal year 2025/2026 reflects a strong commitment by the 6th Phase Government to further enhance the country’s business environment while balancing the need to increase domestic revenue with the imperative to stimulate inclusive economic growth.
The Confederation of Tanzania Industries (CTI) commends the Government for presenting a well-balanced and growth-oriented budget, and wishes to assure the Government of its commitment and support in ensuring success towards Government’s vision of attaining a vibrant economic growth as stated in the third Five-Year Development Plan 2021/22-2025/26.
Moreover, CTI extends its sincere appreciation to the Minister for Finance, Hon. Dr. Mwigulu Nchemba (MP), and the Government at large for their efforts in preparing a positive and inclusive national budget that responds to both economic and industrial priorities.
The budget was officially presented by the Minister on Thursday, 12th June 2025, and CTI is pleased to share its analysis and response to the key highlights of the 2025/26 Budget Speech.
CTI is highly encouraged by the Government’s clear dedication to inclusive economic transformation, as evidenced by the budget’s theme: "Domestic Resource Mobilisation and Resilient Strategic Investment for Job Creation and Improved Livelihoods." This commitment is notably reflected in the Government’s initiative to develop the Second Blueprint for Regulatory Reforms, a key measure aimed at improving the business environment and facilitating both domestic and foreign investment.
Tanzania's budget for the fiscal year 2025/26 has been set at Tshs. 56.49 trillion reflecting an 12.3% increase compared to the previous fiscal year 2024/25 budget of Tshs. 50.29 trillion with 31% of the total budget being allocated to Development expenditure and 69% being allocated to recurrent expenditure. From the budget of the Fiscal year 2025/26, the Government expects to collect Tshs. 40.46 trillion from domestic revenue which indicates a 16.9% increase compared to estimated domestic revenues collected in the fiscal year 2024/25 of Tshs. 34.6 Trillion. This upward trend in domestic resource mobilization from the previous year reflects the Government's commitment to financing development priorities internally aligning with the East African Community's budget theme.
A key highlight of this year’s budget is the Government’s introduction of various reforms to the tax structure, fees, levies, and amendments to laws and regulations aimed at enhancing the business environment. The proposed reforms aim to promote sustainable economic transformation by protecting local industries; enhancing domestic production capacity and improving the competitiveness of goods produced in the domestic, region and international markets. The reforms also 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.
The list of CTI tax proposals approved/recommended is shown in Appendix 1 of this statement.
Some of the positive measures include that were recommended include:
• Amendment of the Budget Act, CAP 439, and the Public Finance Act, CAP 348, to establish a requirement for Ministries, Government Institutions, Agencies, and Local Government Authorities to consult the Minister responsible for finance before introducing any new levies or fees, or when reviewing existing ones. The proposal intends to empower the Ministry to more effectively fulfil its mandate by addressing the previous practice of introducing new levies and fees without consulting the Ministry of Finance. This often results in overlapping charges and duplication of revenues sources already taxed by the central Government.
• Removal licensing fees of Tshs. 300,000 to manufacturers and importers of excisable goods. The measure is intended to reduce cost of producing and importing excisable goods, aligning with the Government’s objective to lower the cost of doing business in the country. The objective is lower the cost of doing business in the country
As we applaud the measures that the Government has come forth with, we wish to highlight areas in the budget for the Fiscal year 2025/26 budget that risk having a negative impact.
In Fiscal year 2023/2024 the Government introduced a three-year excise duty tax calendar, implying that there will be no increase on excise duty in the next three (3) years. However, CTI wishes to thank the Government for freezing the increase of excise duty for three (3) years as it creates a sense of predictability.
However, the Budget speech has proposed Amendment the Excise (Management and Tariff) Act, CAP. 147 to increase excise duty rate by 20 shillings per-litre on beer under heading 22.03; 30 shillings per-litre on wine and other fermented beverages under headings 22.04; 22.05; 22.06; 50 shillings per-litre on spirits, liquers and other spirituous beverages under heading 22.08.
This measure has come as surprise and will ultimately have a significant impact to the industries interms increase in costs of production and production plans of the companies.
Introduction of 5 percent excise duty on locally manufactured sausages, classified under HS Code 1601.00.00. This sub-sector needs to get Government support so as to facilitate its growth, introduction of this excise duty will have a negative impact to the growth of this particular sub-sector.
Other Recommended Tax Proposals in National Budget Speech for Fiscal Year 2025/2026 that have negative impact to the industries are attached as Appendix 2.
However, The Government budget for the fiscal year 2025/26 highlighted the key priority areas that align with the Third National Five-Year Development Plan 2021/22 - 2025/26, themed “Realizing Competitiveness and Industrialization for Human Development”. These priorities include;
• Completing flagship and strategic projects;
• Strengthening production sectors;
• Enhancing human capital development particularly in social services;
• Increasing the use of ICT;
• and improving the business environment and investment.
CTI believes that the selected priorities for the 2025/26 fiscal year will contribute positively to the sustainable development of the country’s industrial sector
Last but not least, 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.
We remain dedicated to working with the Government and all stakeholders to ensure that Tanzania’s industrial sector continues to grow, innovate, and contribute to national development.
CTI Secretariat
P O Box 71783
Dar es Salaam
Tel: 2114954/ 213802/ 2130327
E-mail: https://cti@cti.co.tz/
Social Media Pages: 🔹 LinkedIn: Confederation of Tanzania Industries 🔹 Instagram:@cti_tanzania 🔹 Twitter: @tanzaniacti
Confederation of Tanzania Industries (CTI) addressed journalists in Dar es Salaam on 16th June 2025 on the Governments Budget estimates for Financial Year 2025/26.
CONFEDERATION OF TANZANIA INDUSTRIES STATEMENT ON THE BUDGET SPEECH 2025/2026