Tanzania
Revenue Authority (TRA) board chairman Bernard Mchomvu has urged the government
to suspend tax exemptions on commercial goods such as rice and sugar, saying
they were not helping consumers but rather causing the government revenue
losses.
He
made the remarks at the 6th Taxpayer Day celebrations in Dar es Salaam
yesterday. “Our research shows that exemptions on
business goods such as foodstuff are not helping consumers; rather they
reducing tax collection,” he said.
The
chairman said millions of shillings are lost each month as a result of tax
exemption on rice and sugar.
“We
can offer exemptions on religious aid and aid from our development partners,
but tax exemption on business goods should be removed,” insisted Mchomvu.
Finance
minister Dr William Mgimwa, who was at the function, hailed TRA for doing a
good job, saying the authority had improved efficiency in strategic tax
collection.
He
observed that TRA had surpassed monthly tax collection targets, reaching an
average of 754bn/- in 2012 compared to 42bn/- at the launch of the strategic plan
in 1998/1999-2002/2003.
“This
year’s tax collections are satisfactory. Even reports from Zanzibar indicate a
slight improvement following TRA’s implementation of its set strategic tax
collection methods,” he said.
Dr
Mgimwa hinted at the likelihood of the government introducing strategic plan
number four, while noting that number three, which focuses on the use of
science and technology in collecting tax had proved useful.
For
his part, Vice-President Dr Mohammed Gharib Bilal said the government’s
five-year development plan launched in June last year by the president aimed to
increase production and the availability of power to enable economic and
development activities to be implemented more efficiently.
“Since
it is your responsibility as a revenue authority to monitor taxes, you should
make sure that you fulfill your duties diligently by providing good services to
taxpayers,” he urged.
In
response to the plea from members of the business community to trim down Value
Added Tax from 18 to 15 per cent, Dr Bilal said the government had already
addressed the problem and was now awaiting a report from the World Bank
regarding the matter.
The
VP said he was aware of the successes being scored by the Authority, in
particular in the fight against corruption within it.
“We
want the management of the Authority to ensure the place for collection of
government revenue is corruption-free,” said the vice-president.
For
the second time in a row, the National Microfinance Bank emerged the overall
winner, followed by Tanzania Breweries Limited (TBL) and Tanzania Cigarette
Company.
In
response to the plea from members of the business community to trim down Value
Added Tax from 18 to 15 per cent, Dr Bilal said the government had already
addressed the problem and was now awaiting a report from the World Bank
regarding the matter.
The
VP said he was aware of the successes being scored by the Authority, in
particular in the fight against corruption within it.
“We
want the management of the Authority to ensure the place for collection of
government revenue is corruption-free,” said the vice-president.
For
the second time in a row, the National Microfinance Bank emerged the overall
winner, followed by Tanzania Breweries Limited (TBL) and Tanzania Cigarette
Company.
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