Food Systems Fiscal Policy

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Situation Analysis

  • High import duties on agricultural technologies such as irrigation
    equipment, farm machinery spare parts, increase cost of production
  • Multiplicity of taxes, including local government taxes reduce
    profitability and discourage investment in the sector
  • Ambiguity in the interpretation of tax policy may lead to double
    taxation and hence a need for a simplified tax structure
  • Tanzania needs to comply with EAC’s Common External Tariff and
    alignment with AfCFTA protocol
  • Unequal application of tax rates, rules and regulation

Policy Activities

Advocacy to increase public investment in agriculture to 10% in line with CAADP resolution supported

Prioritization of budgetary allocation to productivity enhancing interventions championed

Amendment of the Local Government Finance Act to reduce agricultural produce levy supported

Adoption of an e-system system for Local Government tax administration championed and supported

Annual preparations, submission and presentation of a proposal for tax amendments in the agricultural sector to the Ministry of Finance and policy makers supported