TAX exemptions extended to mining companies has decreased from 17.6 to 9 per cent of all tax relief granted to investments over the past years, the Minister for Finance and Planning, Dr Philip Mpango, has stated.
Dr Mpango noted as well that the
enactment of the Value Added Tax (VAT) Act has reduced exemptions to a
large extent since the category made up 56 per cent of all exemptions.
Dr Mpango stressed as well that as a
responsible minister for granting the relief he will not tolerate tax
exemptions which are not beneficial to the country.
“The government is now focusing on
improving business and investment climate to attract investors as
opposed to tax exemptions,” the minister remarked.
Dr Mpango made the explanation in his
response to a supplementary question to Special Seats MP, Ms Upendo
Peneza (Chadema) who had tasked the government to explain measures it
had put in place to reduce exemptions.
Responding to a basic question earlier,
the Minister for Industry, Trade and Investment, Mr Charles Mwijage,
said the government will review from time to time the tax relief to
weigh their significance to the economy. The explanation followed an
inquiry by Ms Peneza on how the state was set to reduce the relief to
tap more revenues from investments.
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