The growing oil and gas industry in Tanzania will have enormous economic contributions that benefit all Tanzanians. Some of the benefits are listed below.
Every year, the oil and gas industry pays taxes to the government. These taxes are either in the form of profit taxes, withholding taxes, payroll taxes and other types of direct and indirect taxes. These funds help pay for important government services, such as education, health care and infrastructure that benefit every citizen of Tanzania.
OIL AND GAS PROFIT SHARES AND ROYALTIES
One of the main ways the government and the people of Tanzania benefit financially from the oil and gas industry is through profit shares and royalties. As part of the production sharing agreements that the Government of Tanzania has signed with international oil companies, all producing companies pay a royalty to the government and the government has a share of profits in all the oil and gas sales that take place.
Oil and gas industry supports a lot of direct and indirect jobs across the country. In addition to the jobs created, the income earned from the jobs help increase government tax collection through payroll and income taxes, and also contributes to more money circulation.
International Oil and gas companies have made significant investment in the country, so far to the tune of several billion dollars which has resulted into Tanzania ranking high in attracting Foreign Direct Investment (FDI) compared to other East African Countries.
Oil and gas industry has enhanced local content through building capacity of local contractors and local employees in the new area of oil and gas. This has resulted not only in economic benefits to the participating companies and individuals but also better capacity to participate in the future in similar or other industries.