In 2015, governments across the world made a Commitment to Reduce Inequality Index (CRII) through the Sustainable Development Goals (especially SDG 10). The different levels of inequality that exist in countries show that inequality is far from inevitable; rather, it is the product of policy choices made by governments. The CRI Index, developed in partnership by Oxfam and Development Finance International (DFI), measures and ranks government efforts in three areas or ‘pillars’ that are key for the reduction of inequality: public services, progressive taxation and labor. CRI enables citizens and civil society organizations to hold governments to account for their real commitment and progress towards building fairer and more inclusive societies.
Norwegian Church Aid and religious leaders commend the Tanzania government's efforts in addressing several recommendations from the 2022 CRII report, particularly the enactment of the Universal Health Insurance Law in 2023, which provides access to healthcare for the poorest Tanzanians. We are also witnessing efforts to mobilize domestic resources for this initiative through newly introduced taxes, as outlined in the Finance Act of 2025. This endeavor among others demonstrates government actions to reduce inequality.
The 2025 Commitment to Reducing Inequality Index (CRI), jointly developed by Norwegian Church Aid, FELM, Church of Sweden and Development Finance International, has identified key areas where Tanzania can make further progress in supporting inclusive economic growth and ensuring that prosperity is shared more equitably among all citizens.
Despite steady economic growth, Tanzania continues to face challenges related to income inequality and access to essential services. The report shows that while Tanzania performs relatively well on progressive tax policy design, there are significant opportunities to improve tax collection, enhance public service delivery, and strengthen labour protections—particularly for workers in informal or vulnerable employment.
Key Findings
- Taxation: Tanzania has one of the most progressive tax systems in the region, yet collects only 25% of potential revenue, with a tax-to-GDP ratio of 12.9%, below the regional average.
- Public Services: Spending on education (13%) and health (5%) remains below international and regional benchmarks, limiting progress in reducing poverty and thereby reducing inequality.
- Labour: Over 80% of the workforce lacks formal labour protections. Minimum wage levels and maternity leave fall below global standards, contributing to persistent wage inequality.
Opportunities for Policy Strengthening
The report outlines several constructive steps that could further Tanzania’s progress toward inclusive development:
- Enhance domestic resource mobilisation by implementing planned revenue reforms and reviewing tax incentives to ensure alignment with national development goals.
- Invest in public services, particularly health, education, and social protection, to expand access for all, especially the most vulnerable.
- Support fair and decent work by improving enforcement of labour rights and strengthening wage policies and parental leave to support family well-being and economic participation.
- Put a realistic and time-bound National Inequality Reduction Plan (NIRP) in place, with annual monitoring to assess progress. The plan should aim to reduce the income Gini coefficient by 15% by 2033 - aligned with the African Union target
The report also notes Tanzania’s commitment to maintaining essential service delivery amid fiscal constraints and encourages continued engagement with international partners to access concessional financing and technical support.
About the CRI Index
The Commitment to Reducing Inequality Index ranks 164 countries based on their policies on taxation, public services, and labour rights. It provides evidence-based analysis to inform policy and development dialogue.
About NCA and interfaith
Interfaith Standing Committee on Economic Justice and Integrity of Creation (ISCEJIC) is the national interfaith platform which represent major faith communities in Tanzania. The platform is jointly owned by the National Muslim Council of Tanzania (BAKWATA), Tanzania Episcopal Conference (TEC) and the Christian Council of Tanzania (CCT)Since 2007 Norwegian Church Aid in collaboration with religious leaders have been conducting various research related to Tax and Mining advocacy such as the Golden Opportunity (2008), One Billion Dollar Question (2012), One Billion Dollar Question Revisited (2017) and the “Make it Possible report on How Tax commitments can move Tanzanians towards Universal Health Coverage (2018)”. All these reports were aiming at showcasing how much Tanzania is losing in potential tax revenue and provided recommendations to improve tax collections to finance social services delivery including realizing Universal Health Care for all Tanzanians. In 2023 the government of Tanzania passed the Universal Health Care (UHC) law.
DINI MBALIMBALI – UPENDO, HAKI NA AMANI
For more information
Edmund Matotay
National Coordinator (ISCEJIC)
Phone: +255 752 747450
Email Address: edmund.matotay@gmail.com