Tanzania: President Hassan announces tax cut, new economic measures
Tanzania’s newly-appointed president, Samia Suluhu Hassan, announced on Saturday that the government will temporarily reduce income tax in the country.
Hassan, who took office in March after the death of former president John Magufuli, spoke at a Labour Day event held in the northern region of Mwanza where she revealed the income tax rate will be cut by 1% to 8% for the 2021/2022 financial year.
Tanzania to cut income tax after Covid-19 slump
In her Labour Day speech, President Samia Suluhu Hassan said that the Covid-19 pandemic had damaged economic growth around the world and stated that Tanzania is no exception. Her comments contrast with former president John Magufili who was one of Africa’s biggest Covid-19 deniers prior to his death, drawing criticism from many for refusing to acknowledge the virus or implement measures to contain the virus.
However, President Hassan has acknowledged the pandemic in several public appearances since coming into office in March. Last month, she announced the formation of a committee to investigate the current state of the outbreak in Tanzania and determine whether the country should follow the preventative measures taken by other nations.
To help Tanzanians cope with the economic impact of the outbreak, Hassan said that income tax will be reduced for the tex year 2021/2022 and will “later increase” without specifying when this increase would come or how much it would be.
Featured image: By Gospel Kitaa – Kuagwa kwa Miili Lucky Vincent-183, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=101744564