Zanzibar Private Sector Backs Draft Budget but Warns of Tourism Gaps and Internet Tax
Zanzibar Private Sector Backs Draft Budget but Warns of Tourism Gaps and Internet Tax
Business leaders and Deputy Finance Minister Hamad Omar Bakar reviewed Zanzibar’s $3.13 billion draft budget, which allocates 64.4% to development—continuing a four‑year strategy of large strategic projects.
Stakeholders welcomed spending but noted:
🟠Tourism’s weak local supply chain, with much food imported;
🟠Fisheries contribute below 20% of GDP;
🟠Agriculture has lost significance despite employing many;
🟠Caution urged on taxes tied to global fuel price hikes;
🟠Proposed 17% excise duty on internet services contradicts digital transformation.
"No sector can function without internet," said Zanlink CEO Sanjay Raja.
The government aims to create an enabling environment for private sector growth, the deputy minister said, adding the dialogue helps review policy and make early adjustments.
The final budget speech is set for June 11.
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