Tanzania’s budget for the 2011-2012 financial year may be 12.8 trillion shillings ($8.3 billion), up from 11.6 trillion shillings for the year ending this month, Zitto Kabwe, the chairman of the parliamentary public organizations and accounts committee, said in a phone interview yesterday.
Tanzania will discuss with mining companies operating in the country how a so-called super-profit tax might be implemented if parliament approves the proposed levy, Mines Minister William Ngeleja said.
Tanzania, which vies with Mali to be Africa’s third-biggest gold producer, may study a “super profit” tax on minerals similar to a levy put forward in Australia, the East African nation’s planning commission said.
Tanzania should impose a 10-year moratorium on licensing offshore oil and gas blocks to allow for the creation of laws ensuring the country benefits from its natural wealth, Shadow Finance Minister Zitto Kabwe said.
Sichuan Hongda Co. may invest $3.5 billion in a 600-megawatt power plant in Tanzania along with two other companies, the Daily News reported, citing Zitto Kabwe, head of a parliamentary committee on state-owned enterprises.
Kenyan Finance Minister Robinson Githae is ramping up spending to prepare for elections that were marred by violence more than four years ago, undermining plans to curb the budget deficit and adding to borrowing costs in East Africa’s largest economy.
Kenya, Tanzania and Uganda may scale back deficit reduction plans in the next fiscal year as they ramp up investment to maintain economic growth and cut taxes to ease the impact of rising food and fuel prices.