The Tanzania Private Sector Federation (TPSF) and the Confederation of Tanzania Industries (CTI) welcomed several business and tax reforms in Tanzania’s 2026/27 Budget, including faster VAT refunds, investment incentives, and regulatory simplification. However, private sector leaders said economic growth will need to accelerate from the targeted 6.3% in 2026 to more than 10% annually to achieve the Tanzania Development Vision 2050 goal of becoming a USD 1 trillion economy.
These views were presented on 12th June 2026, during budget review events organized by the Tanzania Private Sector Federation (TPSF) and professional services firm EY in Dar es Salaam. The events brought together business executives, tax experts, and industry representatives to assess the budget’s implications for private sector growth. During the TPSF’s budget review, participants described the budget as an important starting point for the implementation of the Tanzania Development Vision 2050. However, they emphasized that economic growth will need to accelerate significantly beyond current levels to achieve that ambition. Speaking during the event, Deloitte Consulting Partner Samuel Ndandala described the 2026/27 Budget as an anchor budget for Tanzania’s Vision 2050. He noted that Tanzania’s economy is projected to grow by 6.3% in 2026 but said annual growth of between 10% and 15% will be required to meet long-term development objectives. Ndandala also highlighted several measures welcomed by businesses, including the government’s decision to pay interest on VAT refunds delayed beyond 30 days, the extension of VAT deferment on imported capital goods, and the reduction of deemed profit distribution subject to withholding tax from 30% to 15%.
Read more at: https://www.tanzaniainvest.com/economy/budget-2026-2027-private-sector-review
