(Ecofin Agency) - Tanzania may soon introduce a tax amnesty and tax relief program, to improve compliance and boost investment within the country. The Finance Minister Philip Mpango (photo) said last week.

According to Reuters, the amnesty strategy will allow to exempt Tanzanians defaulted on tax payment from interest and penalties for the next six months. In doing so, authorities hope to increase tax compliance rate by 10%, and subsequently boost state revenues.

As for the relief strategy, it is expected to drop income tax rate from 30 to 20% for companies active in pharmaceutical industry and leather products that plan investment in the East African country. The five-year tax relief is expected to boost investment and government revenue growth in one of East Africa's strongest economies.

Let’s note that these measures are scheduled to come into force as of the next fiscal year beginning next July. Authorities expect growth to reach 7.2% at the end of the current fiscal year.

Moutiou Adjibi Nourou