HAVING a larger number of taxpayers could potentially pave the way for a reduction in value-added tax (VAT) rates, the government has declared.

Finance minister Dr Mwigulu Nchemba made this affirmation at a farewell ceremony for outgoing Swiss ambassador, Didier Chassot, reaffirming the government's dedication to improving the investment environment.

Improving tax schedules for various spheres of business is likely to benefit the broader economy, he said, seeking to assure the international community of the government's commitment in that area.

The minister pointed at the presidential initiative to form a team of experts tasked with reviewing and recommending improvements in the tax system, asserting that the government wishes to attract more business and investment projects.

Treasury has upgraded electronic tax collection systems to boost efficiency and reduce taxpayer inconvenience, he said, stressing that the reforms will foster a more favourable investment environment and broaden the taxpayer base.

In his remarks, the outgoing envoy lauded the government's proactive approach to tax reform, expressing confidence that foreign envoys here will have ample opportunity to engage with the government on these issues.

 He praised the current authorities for bringing about rapid developmental progress, setting out his country’s plans to introduce a new development cooperation plan with Tanzania.

This plan will focus on support for the Tanzania Social Action Fund (TASAF), public financial management along private sector business and investment initiatives, he stated.

In concluding his four-year tenure in the country, the envoy pledged to maintain advocacy for Tanzanian interests upon departure, underscoring the ongoing partnership between the two nations.

Switzerland has been supporting development projects in Tanzania since the early 1960s, he specified, noting that over the next few years, the embassy expects to work with local and Swiss partners to empower young people.

Poor young women will be specially targeted to achieve social and economic advances, as the Swiss cooperation programme for Tanzania during 2021–2025 builds on experience, lessons and partnerships to deliver results for the poorer sections of the community, he added.