Tanzania seeks to lure more investors to the country by offering 10 years tax exemption of Corporate and Value Added Tax (VAT) on raw materials and China is the first to seize the opportunity.
The incentive saw a delegation of 10 Chinese investors come to the East African country earlier this week to express interest.
According to the head of the delegation and President of the China-Asia Economic Development, Huang Zhaojin, “we are dedicated to investing in Tanzania’s friendly business environment.”
In a bid to attract more direct investment, Tanzania hopes to create a direct conducive business environment to churn in investment volumes into the country.
Tanzania has set up different export processing zones where investors can get various incentives to enable them to operate profitably in the country.
These investors would enjoy 10 years exemption for corporate tax and VAT on raw and construction materials.
The government is putting these measures to tackle the challenges involved in bureaucratic procedures that trigger a rise in costs of investment and doing business in key sectors of the country.