A MULTI stop procedure is being introduced in tax recovery exercises that prioritizes discussions with investors before resorting to drastic measures, the Tanzania Revenue Authority (TRA) has declared.

Yusuph Mwenda, the TRA commissioner general, issued this affirmation at a dialogue forum for foreign investors, in Dar es Salaam yesterday, noting that issuing demand notices would only be taken up later.

Explaining that the changes are meant to enhance the business climate, he said that TRA was determined to improve the tax recovery regulatory framework to ensure that it is more business-friendly.

The initiative aims to foster investor confidence and address grievances effectively, he said, assuring investors that from now it will take care on procedures followed when following up on tax claims or recovery.

TRA was paying attention to investors to gather feedback and design vital improvements that support business expectations, a proactive approach seeking to encourage reinvestment and long-term partnerships, he said, underlining that this prospect is vital for the country's economic growth.

TRA will approach tax liabilities using fair and transparent procedures, citing the use of an un-evidenced notice as a last resort measure," he explained, reiterating intentions to engage in discussions before taking any drastic recovery actions.

Under the redesigned framework, investors will be provided with a hearing to contest assessments they might deem unfair, while TRA officials are expected to be receptive to such concerns and “willing to adjust assessments based on valid justifications.”

He reiterated TRA's commitment to uphold the law, stating that while the agency is not above the law it will comply with the law and adhere to due procedures. TRA is also taking steps to improve operational efficiency with an integrated domestic revenue administration system, abbreviated as IDRIS.

It is designed to minimize direct interactions between taxpayers and TRA officials, streamline tax operations and reduce bureaucratic delays, when it starts to operate in January, he said.

Efforts to recognize and facilitate tax incentives for investors were being pursued, he said, citing a joint technical team established to address incentives, that investors face no hurdles in taking up such benefits.

TRA is committed to overseeing an attractive investment climate, thus it keeps its doors are open to serve investors so that they prosper in their business., he stated, while Dr Binilith Mahenge, the Tanzania Investment Centre (TIC) board chairman, underlined that the government views the private sector as the driver of economic growth.

"The private sector will deliver jobs, transform labour markets, bring new technologies, open more opportunities and boost our socio-economic development," he stated, stressing the government's role in facilitating private sector growth.

This is done through effective legislation, transparent taxation systems and a conducive business environment, he stated, while Gilead Teri, the TIC executive director, described the forum as an opportunity for investors to discuss issues affecting businesses.

The dialogue is expected to be constructive, with businessmen and women sharing experiences and ideas, which will be addressed to the government to pursue a course of reform aimed at making Tanzania a more investor-friendly country, he said.

The meeting would provide investors with insights into new opportunities available in the country, he added.