Tanzanian budget focuses on energy and the environment

The energy crisis in Tanzania has been felt throughout the country and as such has been identified as a priority area in Thursday’s budget.

The budget speech reveals tax policy measures to also alleviate this crisis while considering the environment at the same time.

The most obvious change is the focus on petroleum products and removal of VAT on petroleum.

Fuel levy has been increased from Tshs. 90/litre to Tshs. 100/litre.

The purpose of this is to raise money for road maintenance needed due to erosion, a worthy cause, and perhaps providing some maintenance for the pothole left by the VAT exemption erosion on the budget revenue.

As part of all this, the petroleum industry is suffering a bit of a crackdown, and the Government has stated it intends to strengthen control measures over this industry.

This results from perceived tax evasion by certain players in this industry and the Government means to get tough.

Plastic bags have faced an increase in excise duty of 15% to 120%, a move to make us bring our own bags when shopping and reduce the destructive waste these bags create.

African News Dimension