Unguja. A heated exchange unfolded in the Zanzibar House of Representatives today after a legislator called for the dissolution of the Joint Finance Commission, questioning its effectiveness and relevance in managing the complex fiscal relationship between the Union Government and the Revolutionary Government of Zanzibar (SMZ).
The call came from Kombo Mwinyi Shehe, the representative for Wingwi constituency, during the 19th session of the House. Mr Shehe argued that the commission, a key institution tasked with overseeing fiscal relations within the United Republic of Tanzania, had consistently attracted criticism over its performance and questioned whether it should continue to exist.
But in a swift response, Deputy Minister in the President’s Office (Finance and Planning), Juma Makungu Juma, defended the commission, insisting it remains a cornerstone of the Union’s financial governance.
“The Joint Finance Commission plays a crucial advisory role in ensuring fiscal coordination and cooperation between the Union Government and SMZ,” Mr Juma told lawmakers.
Established under Article 134 of the 1977 Constitution and operationalised through Chapter 140 of the Laws of Tanzania, the Joint Finance Commission is mandated to provide analysis, advice, and recommendations on revenue sharing, debt management, and tax policy affecting Union matters.
Mr Juma explained that the commission conducts continuous research and consultations to guide both governments on financial arrangements that reflect their respective priorities.
The deputy minister outlined a number of concrete achievements attributed to the work of the Joint Finance Commission. One of the most notable, he said, was the strengthening of debt oversight. Previously, Zanzibar had only two representatives on national debt oversight committees, compared to eight from the Union Government.
Following the commission’s recommendation, amendments were made to the Loans, Guarantees and Grants Act (Cap. 134), increasing Zanzibar’s representation to five members. This change, he noted, has enhanced transparency and ensured a more equitable approach to external borrowing.
In addition, the commission played a key role in harmonising tax policy between the two governments. To ensure fairness and attract investment, it advised that the Union Government and the Revolutionary Government of Zanzibar hold annual consultations on Union-related tax matters.
This recommendation has since been incorporated into the Budget Act (Cap. 439), allowing for more coordinated and balanced tax planning.
Mr Juma also highlighted the commission’s efforts in promoting trade facilitation. He said it had successfully advocated for the removal of non-tariff barriers hindering the movement of goods between Zanzibar and Mainland Tanzania.
This, he explained, is intended to reduce trade bottlenecks and foster greater economic integration within the Union.
“These are not minor achievements,” Mr Juma added. “They show how the commission has played a role in levelling the playing field and improving financial harmony across the Union.”
Calls for reform, not abolition
While acknowledging the concerns raised by lawmakers, the government insisted that reform—not abolition—was the way forward.
“Disbanding the commission would risk reversing progress on crucial fiscal integration efforts,” the deputy minister warned.
The debate comes at a time when broader conversations about the future of the Union are gaining momentum. Zanzibar’s leaders have long advocated for a more equitable financial arrangement within the Union, while union authorities continue to emphasise the need for cooperation and mutual benefit.
As such, Mr Juma called for a more constructive approach focused on strengthening, rather than dismantling, institutions that underpin the Union’s fiscal architecture.
