PRESIDENT Samia Suluhu Hassan has condemned the malpractice of tax evasion, asking the Tanzania Revenue Authority (TRA) to ensure that all individuals and entities with a legal obligation to pay taxes meet their obligation.

Speaking at the Taxpayers’ Appreciation Awards for fiscal 2023/24 in Dar es Salaam late on Thursday, the president said that tax evasion hampers the country’s development and delays the government’s ability to implement its plans.

The habit has a negative impact on vital services such as the timely provision of medicine to health centres, while disrupting fairness in business.

“Those who evade taxes gain an unfair advantage over compliant businesses, creating an uneven playing field," she affirmed, asking TRA to ensure that every taxpayer contributes their fair share, thus ensuring a level playing field for all businesses.

TRA officials need to uphold integrity in their operations, eliminating practices that foster inequity in tax collection, she said, cautioning against corruption.

Swift action must be taken against employees who enable or promote unfair tax practices, she said on the direction of the TRA commissioner general, to take swift action against revenue officials undermining fairness in tax payments or fostering corruption.

Investigations need to be conducted on employees for immediate and impartial removal of any staff involved in corrupt practices, facilitating tax evasion, she stated.

She reiterated the government’s goal as to foster an enabling environment for work, business and facilitating economic growth, pointing out that the Tax Reform Commission was set up last year to evaluate the country's tax system.

Ito was tasked with making recommendations for its improvement with a view to developing a tax system that is equitable, transparent and easy to comply with, while offering competitive tax rates.

That would simplify and stimulate economic activities, ensure higher tax revenue, accelerate development and reduce budgetary dependence.

She similarly encouraged TRA to leverage digital systems to efficiently connect with taxpayers, in view of investments made in building a digital economy.

She also reminded business practitioners against using counterfeit electronic fiscal devices (EFD) to issue receipts or fake electronic tax stamps (ETS) for excisable goods to evade taxes.

She similarly dwelt on the misuse of transfer pricing by some companies, affirming that it is an injustice to the government and the citizenry as a whole.

“Addressing these issues is critical, and I urge TRA to remain vigilant and take firm action against such practices,” she emphasised.

She asked Finance minister Dr Mwigulu Nchemba to address the backlog of pending tax cases at the Tax Appeals Board and Tax Appeals Tribunal.

Lodging the cases demonstrates the taxpayers’ right to appeal, but they need to be resolved swiftly to ensure justice and maintain efficient revenue collection, she said.

The capacity of these institutions must be strengthened to handle cases without compromising the quality of their decisions, she stated.

Hamisi Livembe, the chairman of the Tanzania Business Community Association, otherwise known as the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) acknowledged the breadth of reforms to improve the business environment.

The lingering concern is the burdens of unpaid debts from audits that had not been conducted on time, some dating back three to five years.

“We request TRA to reduce the audit timeline from five years to three,” he said, while Paul Makanza, the Tanzania Private Sector Foundation (TPSF) vice-chairman said the private sector was ready to collaborate with the government, TRA and various ministries to foster economic growth and boost tax revenues.