CONFEDERATION OF TANZANIA INDUSTRIES (CTI)���CTI Policy & Advocacy Priority Issues for the year 2025/26.�Presented at the CTI Industry Leaders Alignment and Iftar Networking session held at the New Africa – Four Points by Sheraton, Dar es salaam on 13^th March 2026.

Who we are: The voice of Tanzania Industry

WHO WE ARE

A voluntary, feed-based membership organization formed in 1991 as the single voice of industry (manufacturing) serving over 18,000 manufacturers (members and non-members). Our members are primarily private sector manufacturers and associated service providers. Current membership is +400 from various sectors, with a turnover of $300k to $500million. Our head quarters are located in Dar es salaam with outreach offices in Tanga, Mwanza and Arusha.

A

OUR KEY STAKEHOLDERS

Members, other business associations in and outside Tanzania, government, development partners, think tanks, academia, and the public.

B

OUR STRENGTH

A trusted and respected partner to the Government on all matters related to the manufacturing sector. A focal point for regional business opportunities.

C

What we do: Evidence-based advocacy

WHAT WE DO

Our purpose: To create a conducive business environment

Values

Our vision

“To be a respected regional business association that effectively delivers value for money for its members and society leading to regional and global competitiveness and prosperity”

Our mission

To effectively serve its members and the general public by providing products, programmes and services that sustainably improve business competitiveness and economic prosperity

Our values

Member-centric. Reliable.

Trustworthy. Creative. Dedicated. Committed. Innovative. Ethical. Incorruptible

Major Issues/challenges affecting Industries in Tanzania

Unreliable availability of electricity supply to industries and high cost of power

Challenges/Impact:

• Unreliable power supply – fluctuating voltage of electricity and interruption.
• Machinery breakdown: fluctuation on the electricity supply in the industries may cause breakdown of machineries
• High cost of power: as industries tend to use alternative sources of energy such as generators which are more costly.
• Reduced competitiveness of the domestic industries
• production losses and decline in profitability
• Recommendation:
• Strengthen power transmission and distribution facilities to ensure reliable power for industries.
• Allocate priority supply lines to the manufacturers to ensure reliability of power supply
• Lowering of the electricity tariffs to the domestic industries.

Policy Action:

• More engagements with TANESCO

Electronic Tax Stamps (ETS) related challenges

Challenges/Impact:

• There were efforts shown by the Government to reduce the cost of ETS on excisable goods effectively from January 2024, ranging between 14.5% and 33% depending on the type of product in 2024
• Manufacturers consider the reduction not adequate and seek further reduction of ETS cost
• Paper Stamps: high waste ratio and easy to counterfeit, non-activation penalties.

Recommendation:

• A further reduction of ETS costs by 40% of the current ETS Prices.
• Amendment of Electronic Tax Stamp regulation of 2018; provide exemption for penalties due to lack of control.
• Migration to digital markings.

Policy Action:

• This issue has been presented and submitted to the Standing Parliamentary Committee on Budget; and Standing Parliamentary committee on Industry Trade Agriculture and Livestock
• It has also been submitted to the Task Force for Tax reforms (TFTR)

Delays in clearance of cargo at the Dar es salaam Port

Challenges/Impact:

• Delays in the clearance of containerized industrial cargo resulting from the Port ineffincies.
• Interruption in production schedules
• High demurrage and storage costs with which the manufacturers are made to pay
• Increases the costs of operation for industries due to time delays and high demurrage and storage costs.

Recommendation:

• Efficient collaboration among the Port Actors to minimize the delays
• Waiving the demurrage and storage cost that resulted from the delays caused by the port ineffincies
• Prioritization in the clearing of containerized industrial cargo from the port.

Policy Action:

• Held a meeting between members and the Port Director regarding the issue.
• Wrote a letter to the Tanzania Ports Authority (TPA) Director General requesting for a meeting to discuss this issue further.

Introduction of new Port tariffs

Challenges/Impact:

• The last quarter of the year 2025 the Tanzania Ports Authority (TPA) reviewed its tariffs.
• The revied tariffs would increase the cost of doing of clearing goods at the port.
• For example, the introduction of Port Infrastructure Development levy at (9% of custom duty) that would massively increase the cost of clearance.
• Limiting the number of days before clearing hazardous cargo to 1 day, knowing very well that is nearly impossible to clear goods in 1 day, so as to attract penalties
• Increased costs of operations rendering domestic companies uncompetitive

Recommendation:

• Removal of the Port Infrastructure Development Levy to industrial raw materials which attract an import duty of 0%
• Increasing the days of clearing hazardous cargo from the proposed 1 day to a range of 5 to 7 days

Policy Action:

• Engaging with the Tanzania Ports Authority Management to discuss the issue further.

Multiplicity of Regulatory authorities' fees and mandates

Challenges/Impacts:

• Existence of multiple regulatory authorities.
• High cost of compliance
• Time-consuming in handling different regulatory bodies lead to reduce efficiency
• Increase operational cost

Recommendation:

• Mutual recognition of verification results conducted by other regulatory authorities and accredited laboratories.
• Reduce fees, levies and charges to cover the actual cost of providing the service.
• Conducting of Stakeholders’ consultation session before any review of the existing charges and introduction of new charges

Policy Action:

• Advocating for the expediting the implementation of the Blue Print for Regulatory Reforms recommendations

16% Free Carried Interest (FCI) on Industrial Raw materials and other challenges

Challenge/Impacts:

• State Participation Act No. 7 of 2017 gives the Government not less than 16% of non-diluted free carried interest shares in all the companies that engage in mining activities regardless of whether mineral mined are meant for production and not final product.
• Affected companies include: integrated Cement Manufacturers, fertilizer producers, gypsum producers and all the industries that conducting quarrying activities to obtain their raw materials.
• Introduction of excise duty of Tshs. 1000/bag on cement in the Financial year of 2023
• Increases costs of production/operations to manufactures.

Recommendation:

• The Government through the Mining act should exclude Industrial minerals from precious metals. Industries should not be charged 16% non-dilutable free carried interest shares in the capital.
• Reduce the excise duty on cement from Tshs. 1000/bag to Tshs, 250/bag

Policy Action:

• This issue has been submitted to the Task Force for Tax Reforms (TFTR) for their further action.

Growing illicit trade in Tanzania

Challenge/Impacts:

• illicit trade create unfair competition with genuine domestic goods including; counterfeit goods, under-invoicing/declared goods and smuggling goods.
• Weakening local industries.
• Reduce the Government revenue from Tax – The Government looses approximately 1 Trillion Shillings in tax revenues due to illicit alcohol
• Increase in products with low quality standards within the market

Recommendation:

• Increasing border inspections particularly along all the entry points of the country such as ports, boarders, airports and so on.
• Government and various stakeholders join hands in fighting illicit trade in the country
• Impose harsh penalties to offenders

Policy Action:

• CTI is collaborating closely with the Fair Competition Commission (FCC) and Tanzania Bureau of Standards (TBS) towards fighting this issue.

Excise Tax Calendar Enhancement

Challenge/Impacts:

• The Finance Act, 2023 introduced a framework of three-year tax calendar, providing businesses with predictable and stable tax adjustments over a defined period.
• This framework provided notable gains to the manufacturers as they were able to make projections
• However, The framework does not outline the extent of tax adjustments expected after the expiry of the current calendar, which is scheduled for review in July 2026.
• This uncertainty weakens long-term business planning and investment decisions, which typically extend beyond a three-year horizon.

Recommendation:

• Retain the multiyear tax calendar framework introduced under the Finance Act, 2023,
• • Strengthening the framework by publishing, together with each new tax calendar, indicative percentage ranges or fixed adjustment rates that may apply in the subsequent calendar period, subject to macroeconomic conditions and periodic review

Policy Action:

• This issue has been submitted to the Task Force for Tax Reforms (TFTR) for their further action.

Blending of NS with NNS in Carbonated Soft Drinks (CSDs)

Challenge/Impacts:

• Currently, the regulatory position of the country prohibits blending of Nutritive Sugars (NS) and Non-Nutritive Sweeteners, yet there imported blended products are present in the domestic market
• Unfair competition: Imported blended products compete with compliant local manufacturers.
• Uneven regulatory enforcement: Local manufacturers adhere to national standards while imports appear to bypass them.
• Investment discouragement: Domestic manufacturers who have invested heavily in Tanzania face uncertainty.
• Market distortion: Compliance costs are higher for local producers compared to imported alternatives.

Recommendation:

• Allowing blending of Nutritive Sugars and Non-Nutritive Sweeteners,

Policy Action:

• Formally engaged Tanzania Bureau of Standards (TBS) on the issue.
• Requested TBS to follow up with the Joint FAO/WHO Expert Committee on Food Additives (JECFA) for a conclusive scientific position.

One-third Tax deposits on filing a Tax dispute

Challenge/Impacts:

• When a taxpayer files a tax objection after being aggrieved with tax assessments, they are required to pay the amount of tax which is not in dispute or 1/3rd of the assessed tax whichever amount is greater so that the objection can be admitted.
• The requirement of 1/3 tax deposits on filing a tax dispute is a huge financial burden to tax payers and it limits the taxpayers legal right to object and safeguarding against undue tax assessments.
• For large industries the 1/3rd deposit is often a very high amount hence affecting smooth business operations by tying a huge sum in deposits awaiting tax case finalization;

Recommendation:

• To amend the TAA law to have a specific cap amount of tax deposit such that if the 1/3rd deposit is higher than the capped amount then the taxpayer pays the cap;
• Accept bank guarantees as opposed to cash payments during the dispute resolution process

Policy Action:

• This issue has been submitted to the Task Force for Tax Reforms (TFTR) for their further action.

Promoting and Protect local Industries

Challenge/Impacts:

• CTI commends measures taken by the Government through the duty remission schemes and introduction of the IDLs through the Control Act.
• However, we still urge the Government to put more emphasis on procurement of domestic industrial goods available in the country with high supply and good quality in their major projects
• Enforcement of Procurement Act
• This will encourage expansion of domestic industries.

Recommendation:

• Continue granting duty remissions to the Manufacturers so as to facilitate their productions.
• Using various tools to protect domestic industries such as Industrial Development Levy for strategic Industrial sub-sector that do meet the domestic demand in terms of quality and quantity.
• Procuring of local industrial goods in Government Projects and timely payments for their supplied goods or service

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THANK YOU