Tanzania’s tax tweaks scare foreign investors
Leading foreign investors are rethinking operations in the East African country as red tape and tax bills rise
Dar es Salaam — Some of Tanzania’s biggest foreign investors say they could scale back their operations or expansion plans because of tougher demands placed on companies including higher tax bills, as part of the president’s drive to overhaul the economy. At least six companies are rethinking their business and investment plans, according to interviews with senior executives at a dozen of the biggest foreign firms operating in Tanzania, or their local arms, in sectors including mining, telecoms and shipping. Three said they could scale back operations, two said they planned to expand in other countries on the continent instead, while one said it was in the process of withdrawing from Tanzania altogether. The companies asked not to be named because their plans have not been made public. One company had not yet made a decision on how to respond to the government reforms, while five companies said their plans were unaffected — including two involved in large projects, a $30bn liquefied...
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