Tax grievances for hearing as reforms panel starts working

By Henry Mwangonde , The Guardian
Published at 10:47 AM Oct 23 2024
Former chief secretary Ombeni Sefue, chairman of the Presidential Commission on Tax Reforms, addresses journalists at State House in Dar es Salaam yesterday on the schedule of the commission’s activities.
Photo: Selemani Mpochi
Former chief secretary Ombeni Sefue, chairman of the Presidential Commission on Tax Reforms, addresses journalists at State House in Dar es Salaam yesterday on the schedule of the commission’s activities.

STAKEHOLDERS will start providing views on voluntary tax compliance, expanding the tax base and addressing public grievances on tax collection methods in the coming weeks.

Ambassador Ombeni Sefue, the chairman of the Presidential Commission on Tax Reforms said at a State House press conference in Dar es Salaam yesterday that the commission has formally commenced operating, hence starting by setting out the stakeholder platform.

Expected participants mainly come from academic associations, businesses and individual experts to deliver reasoned viewpoints for the commission to gather those inputs over the next two to three months.

 “By establishing this commission, the president demonstrated the political will to tackle existing challenges. Our first step is to analyse the current tax system to establish a foundation for necessary changes,” he said.

He pointed at the country's impressive economic growth with GDP rising by 4.7 per cent and tax revenue averaging 12.1 percent of GDP, underlining that the 12.1 percent is significantly below the 15 percent of GDP in tax collection required for sub-Saharan countries to achieve the Sustainable Development Goals (SDGs).

The commission will engage with various stakeholders and hold symposiums to gather insights for their mandate, with a design for the general public to participate in the debate by offering views via an online platform.

The commission, which has six months to deliver its findings, is expected to assess various aspects of the tax regime and provide recommendations for reform, having been established in response to business stoppages and diplomatic corps complaints.

There was widespread public concern from businesses and foreign investors regarding current methods in tax administration as well as assessments of tax obligations.

In swearing in the commission members, President Samia Suluhu Hassan tasked them with developing strategies to promote voluntary tax compliance, expand the tax base, and address public grievances on tax enforcement.

The president had underlined that the government wants to bring about a tax system that is fair and where everyone required to pay taxes pays appropriate taxes. All taxes should be collected in accordance with the law she had stated.

The government similarly wants a tax system that stimulates the growth of an industrial economy and contributes to building an integrated economy enabling the government to fulfil its goals of bringing prosperity to the people, she had emphasised.

The former chief secretary is joined by former Bank of Tanzania Governor Prof. Florens Luoga, former Controller and Auditor General Prof. Mussa Assad and retired permanent secretary, Ambassador Maimuna Tarishi.

Other members include Aboubakar Mohamed Aboubakar from the State University of Zanzibar, veteran advocate Ambassador Mwanaidi Sinare Maajar, tax expert David Tarimo, and Rished Bade, a former Tanzania Revenue Authority (TRA) commissioner general.