Mwanza, Tanzania | THE INDEPENDENT | President Samia Suluhu Hassan has taken a decision to cut taxes on workers pay despite Tanzania’s economic growth slowing from 6.9% to 4.7%. Government will promote at least 85,000 workers, but she however says the economy cannot yet afford a general salary increase.
“Based on these factors (slow economic growth), it has been difficult for me to increase the salaries this year, but the government intends to take various steps to improve the welfare of workers,” Suluhu said. (see bottom for full speech)
Speaking at the International Labour Day celebrations on the lake shore town of Mwanza on Saturday, President Suluhu announced a reduction of the Pay As You Earn (PAYE) charged on salaries by 1 percent from 9 to 8%.
In the next year, Suluhu said, the government intends to promote at least 85,000 workers and change the civil service structure. Government will also go ahead to employ 40,000 more workers especially in health and education sectors
Suluhu meanwhile travels to Kenya for a two day visit starting Tuesday. She will address parliament and a Tanzania-Kenya business forum.
— The Citizen Tanzania (@TheCitizenTZ) May 3, 2021