DODOMA: THE Minister for Finance, Khamis Mussa Omar, has announced that the government will grant a one-year income tax exemption to newly registered businesses from the date they obtain a Taxpayer Identification Number (TIN).
Presenting the Government’s revenue and expenditure estimates for the 2026/2027 financial year in Parliament, Ambassador Khamis said the measure is aimed at encouraging the formalization of the informal sector, which employs a large number of young people and women.
“In the 2026/27 fiscal year, the government will continue to create an enabling environment to attract the formalization of the informal sector, which employs more youth and women. To achieve this objective, the government will implement several measures, including granting a one-year income tax exemption to new businesses from the date they receive a Taxpayer Identification Number,” he said.
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The initiative is expected to encourage more entrepreneurs to register their businesses, broaden the tax base in the long term, and support economic growth through increased participation in the formal economy.