Order Description
Tanzania economy has been impacted by the new government policies to stop corruption and tax evasion. This has affected all major sectors contributing to the country’s GDP such as Trade, business
and real estate and consumer spending.
Prior to 2015
Traders and business owners used to bribe to avoid taxes – for example: importing 10 containers of goods and paying tax only for 2 containers.., no recording of purchases receipts, having 2 account
books etc .. so many ways to avoid taxes
The affect / result of this evasion are:
1- Traders and business owners are generating higher profit , the access money is used to live a luxury life , travel, spend on leisure etc but the government loses which affect country development
2- Consumers are buying goods at good / affordable prices given that traders have paid low to NO tax on the imported goods (so they keep prices competitive)
3- Circulation of money – people getting bribes as a secondary income so they can afford to spend more on goods, travel, investing in real estate etc which also resulted in over valuing the
properties
4- As a result of point 3 above, businesses were booming and purchasing powers was increasing as well as real estate was booming and over valued
5- By tightening the tax evasion, controlling the ports and import containers, introducing new policies to capture and stop corruption – this has resulted to the big traders being skeptical in
importing goods, price increase, inflation and no / slow spend by consumers also this impacted by slow circulation of money in the market
6- Given the slow money circulation, and slow business, income tax tightening policies as well as the new permit fees for expatriate employees, jobs have been cut, business slowing down which
affected the growth , expatriates are leaving the country due to losing jobs, so the real estate also has started to fall in terms of occupancy and rental prices – however, what I noticed is that
the land/plot value is still high and overvalued which requires correction – plot/land or property value are only decreased where there is a distress sale situation if owners are in urgent need of
money or non-ability to pay bank mortgage given the current slowdown.
Past 2015, businesses are suffering because the trade and business has slowed down, business owners are skeptical on investing and everyone is holding their money ..
write and publish an article covering the current economic status and outlook for 2018. A real outlook from an economist covering all the above points and more
if possible and how the new government policies will impact the economic growth (positively or negatively) in short term and long term. Also the writer need to cover the opportunities that business
owners/investors need to look and focus on (this could be new line of business or existing) as per the Tanzania market.
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