In line with the theme, the Government’s priority in the 2023/2024 financial year is the productive sectors, including energy, investment and trade, agriculture, livestock, and fisheries. Estimates of the Government budget for 2023/2024 have been prepared based on macroeconomic assumptions, and targets show that 2023 will have a real Gross Domestic Product growth rate of 4.7% and 5.3% in 2024. The National Budget for the 2023/2024 financial year is TZS 41.48 trillion.

We have highlighted below key matters covered in the National Budget. Some of these will be reflected in the Finance Act, 2022, expected to be published today.

Proposed amendments to the Income Tax Act Cap 332

Exemption from Capital Gains Tax

exempting Capital Gains Tax on any transactions carried out for the implementation of agreements involving entry into or transfer of Joint Ventures (JVs) formed by investors and the Government in mining projects and the issue of Free Carried Interest (FCI) shares from investors to the Government; and exempting Capital Gains Tax from shares freely transferred to the Government through the Treasury Registrar.

The National Budget Objectives and Targets

This year marks the second year of implementation of the third 'Five-Year' National Development Plan (2021/2022-2025/2026). The Government’s key issues for the financial year 2023/2024 include continuing to address the effects brought on by the COVID-19 pandemic and the conflict between Russia and Ukraine. The Government also intends to continue prioritising the following flagship projects

• Rail: construction of the Central Corridor Standard Gauge Railway (SGR)
• Road: completion of the construction of regional road networks
• Sea: improvement of ports, construction, expansion and rehabilitation of port infrastructure
• Air: strengthening Air Tanzania and rehabilitation of airports infrastructure

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