The government plans to harmonise a series of taxes in the manufacturing sector which pose a huge burden on operators and reduce the sector's contribution to the country's economic growth.
Finance and Economic Affairs Minister, Ms Saada Mkuya Salum, said in Dar es Salaam on Tuesday that the government was already working in this area.
Ms Salum said the goal was to reduce the cost of doing business by reviewing various levies and duties imposed on industries.
"We have started to sort out a series of taxes that affect not only the manufacturing performance but also the country's position on the World Doing Business Report," she said.
She said the government had been making efforts to support investors in the manufacturing sector by creating a conducive environment such as provision of the right infrastructure.
For example, addressing snags like a large number of regulators who increase operating costs through various charges and cause red tape and other difficulties.
The Confederation of Tanzania Industries (CTI) has been pushing for the implementation of the measures they will boost competitiveness of local manufacturing and value addition.
Moreover, manufacturers have also been seeking the government's intervention to address legal and regulatory challenges. Studies carried out on the sector have established the presence of high costs of compliance for manufacturers.
Earlier this week, the Minister for Industry and Trade Dr Abdallah Kigoda expressed concern over the multiplicity of levies and duties levied on the manufacturing sector.
"A series of taxes imposed on the manufacturing sector might be one of the factors for its poor performance," remarked Dr Kigoda. The sector is regulated by 15 regulators and covered by 25 pieces of legislation.
Some of the regulators are the Tanzania Food and Drugs Authority, the Tanzania Bureau of Standards, the Tanzania Dairy Board and the Occupational Safety and Health Authority, with activities of some regulators overlapping.
