CHAMA cha Demokrasia na Maendeleo (Chadema) has pledged to reduce corporate tax rate in order to attract more investments in the country, if elected to power in the October 28th General Election.
According to the party’s 2020-2025 election manifesto, the government of Chadema, if elected by wananchi, will ensure that the corporate tax rate does not exceed 20 per cent and should not be less than 15 per cent from the profit gained by traders or investors.
By doing so, the party believes it will give opportunities for businesses to grow their capital and expand their investment in the country.
They further believe that more investments will create more employment opportunities to Tanzanians.
Moreover, the party’s government will also reduce Value Added Tax (VAT) to no more than 15 per cent, but not less than 10 per cent.
According to the party’s document, VAT reduction will, therefore, have many benefits, including enabling people to save money for their investments.
It says that Chadema will put in place land rent rates that will allow many people to acquire title deeds which they can use to enter into agreements with financial institutions to get loans to invest in various projects, such as agriculture, livestock and fisheries.
“We will work with the private sector to ensure that land owned by villages and general land is well planned and surveyed free of charge, to eliminate disputes,” reads part of the document.
The document further highlighted that Chadema will abolish the pre-paid premium levy to enable every Tanzanian get title deeds at a low cost.
On charges levied by institutions, government agencies, and councils in the country, he said the tax system under Chadema will harmonize them.
It points out institutions including the Occupational Safety and Health Authority (OSHA), National Environment Management Council (NEMC), Land Transport Regulatory Authority (LATRA) and Tanzania Bureau of Standards (TBS) should be service providers and not commercial institutions.