TANZANIA and the Sultanate of Oman yesterday signed an agreement for removing double taxation on incomes and curbing tax avoidance, evasion.

Dr Mwigulu Nchemba, the Finance minister, and Nasser Al-Jashmi, the Oman Revenue Authority chairman, signed the pact in Muscat, with the minister saying that the signing of the agreement is a significant step in opening up the country’s economy by attracting international investment.

Referring to efforts by President Samia Suluhu Hassan in that direction, he said that the pact will enable investors and traders engaged in bilateral activities and taxed only once.

They will avoid being taxed in both countries on identical transactions or income, as such a drawback hinders the prosperity of businesses on either side. he stated.

Signing the agreement is likely to attract substantial investment flows from Oman to Tanzania, especially with big companies where the royal family has considerable interests.

They are aligned with scores of private investors and have extensive cultural connections in the Mainland and Zanzibar, he said, projecting that easing investments will help push growth in production sectors.

It will also accelerate industrial development and generate increased employment opportunities, as local investors will now be able to invest in Oman without tax barriers, protected by this agreement, he specified.

This step presents an opportunity for Tanzanian businesses to expand their operations into international markets particularly in the Gulf region, he said, describing the pact as opening a new chapter in economic cooperation between Tanzania and Oman.

Oman is being further attracted to investment opportunities in Tanzania thanks to its strategic location, economic attractions and favourable investment environment compared with much of the neighbouring zone, he added.