ARUSHA: THE Tanzanian government has reaffirmed its commitment to establishing a fair and predictable tax system that supports business growth and investment in Tanzania, as part of efforts to achieve the Development Vision 2050 target of building a 1tri US dollar economy by 2050.
The commitment was made by Deputy Minister for Finance Engineer Mshamu Ali Munde, representing the Minister for Finance, Ambassador Khamis Mussa Omar, when opening the annual conference of Ernst & Young (EY) Tanzania, an international firm providing tax advisory, auditing and business consulting services. The event was held in Arusha.
Munde said achieving the Vision 2050 targets would require government efforts and close collaboration with the private sector and professional services firms such as EY Tanzania.
“To achieve a 1tri US dollar economy by 2050, we need productive private-sector investment, strong institutions and a tax system that promotes competitiveness and business growth. The government is committed to creating a conducive environment that enables taxpayers to meet their obligations voluntarily,” Munde said.
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He explained that the government would continue implementing recommendations made by the Presidential Commission for Tax System Review. These include integrating systems used by the Tanzania Revenue Authority (TRA) and local government authorities (LGAs), as well as allocating five per cent of local government resources to improve market infrastructure.
Munde added that information and communication technology systems and data analytics would continue to be strengthened to reduce the need for face-to-face interactions between taxpayers and tax officials. The government would also promote joint inspections among regulatory institutions.
“The government will also continue providing a one-year tax relief to newly established small businesses to give them an opportunity to build their capital. In addition, it will implement the second phase of the MKUMBI strategy, which aims to reduce the accumulation of fees and levies. The Ministry of Finance has established a dedicated Non-Tax Revenue Section to coordinate this area,” Munde explained.
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