TANZANIA: Tanzania Revenue Authority (TRA) Disbands Task Forces
The uproar that greeted the formation of tax task forces a number of years ago changed perceptions of tax collection in many ways.Indeed, everyone has a civic duty to pay taxes, and it is assumed that no one would intentionally avoid fulfilling this moral duty.
However, the task forces have in recent years harassed business people ostensibly in order help the Tanzania Revenue Authority (TRA) meet its targets.
Many Tanzanians closed their businesses across the country because of the out-of-control task forces, which, many a time, compelled people into bribery, or closure.
However, there is a huge relief after TRA confirmed the disbandment of task forces, which gained infamy during the Fifth Phase government.
Many still believe that they are morally obliged to obey the law and pay their fair share of taxes. However, the task forces made many Tanzanians bemoan their tax bills.
It is a commendable move by TRA to hold discussions with businesspeople, and review orders that treated people unfairly.
It is unfortunate that some businesses, which used to employ many Tanzanians, have collapsed, and some are struggling to become as vibrant as they were.
The taxman should devise a more friendly strategy, which will be educative, and promote, not discourage, businesses.
In this regard, there is a need to aggressively pursue tax avoidance strategies instead of employing strong-arm tactics and closing businesses.
It is time TRA ensured that all people understand that paying taxes is one way of avoiding many risks.
Fairness when it comes to tax collection should come first. Many agents are still unscrupulous. They use every order to their personal advantage.
Tax morality is an issue that both taxpayers and government need to address on a serious note.
Intrinsic willingness to pay tax can greatly assist Tanzania in formulating tax policies and administration.
Why the future looks bright
Tanzania is better positioned today than it was five or six years ago in terms of a friendly environment for business and investment. A friendly investment and business climate is crucially pivotal to a country’s development. What Tanzania needs is functional development which is meaningful and sustainable.
Positive change is largely a result of ongoing measures being taken by the Sixth Phase government of President Samia Suluhu Hassan that are intended to revamp the country’s ease of doing business, thus creating a decidedly business-friendly environment.
Indeed, the government is already undertaking across-the-board reforms in industry and trade with a view to vastly improving the business climate. A clearly friendly business environment is an inescapable criterion which prospective investors look for in their boardrooms as they consider investment destinations and related decisions.
It is all about holistic revamping of the investment environment in order to improve the country’s business climate, thereby fuelling the drive to a semi-industrialised, middle-income economy by 2025.
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