One of the biggest tasks facing Tanzania’s recently launched Tax Reforms Commission will be to resolve complaints about weaknesses and malpractices in tax administration that came to a head about four months ago, when domestic and foreign investors confronted the government demanding action.
The nine-member team has only just got down to business after being officially flagged off on October 4, long after President Samia Suluhu Hassan appointed it on July 31, and as a result it may find its work more difficult due to recent developments.
Several key government officials involved in talks with local traders over constant clashes with the taxman, and who the investors through diplomats in Tanzania had asked specifically to be present at the roundtable have since been replaced by newcomers who are still settling in.
The commission’s mandate covers a review of the country’s entire taxation regime and conducting fresh assessments of disparities in rates imposed by the Tanzania Revenue Authority (TRA) on taxpayers at all levels, fines for non-compliance, and matters of transparency in relation to TRA’s collection system.
The overall aim is to strike a balance between the interests of taxpayers and tax collectors in compliance with existing laws while maintaining the business and investor-friendly environment that the Samia administration has painstakingly strived to rebuild after a period of tight shackling under her predecessor John Magufuli.
Former State House chief secretary Ombeni Sefue will lead the task force, which also includes former central bank governor Prof Florens Luoga, former chief government auditor Prof Mussa Assad, and former TRA commissioner-general Rished Bade.
Other members, drawn from the private sector, are Leonard Mususa, Aboubakar Mohamed, Mwanaidi Sinare Maajar, David Tarimo and Maimuna Kibenga.
No deadline has been announced for the team to conclude its assignment and submit a report.
The commission’s formation is the result of rising discontent over questionable taxation practices that bubbled over mid-June, when traders at Kariakoo in Dar es Salaam and other major urban markets went on strike for several days, protesting harassment by TRA compliance inspectors caused by the perceived lack of transparency.
The go-slow happened at a particularly bad time for the ruling establishment, with elections around the corner, and prompted government to temporarily defuse tensions through a series of persuasive talks with traders’ representatives in the administrative capital Dodoma.
Around the same time, on June 26, ambassadors and high commissioners from 10 countries based in Tanzania wrote to the then Foreign Affairs minister January Makamba requesting a formal meeting with relevant high-level government officials to address similar investor grievances over TRA’s conduct.
The envoys’ letter cited, among other things, “unevidenced” tax notices demanding payments and account reconciliations dating back 15 years, extraordinary tax bills not supported by law, and TRA’s rejection of tax concession agreements with the Tanzania Investment Centre — another state agency — on the grounds that they had not been gazetted.
The envoys who signed the petition were from the United States, Canada, Britain, Ireland, Germany, France, Belgium, the Netherlands, Sweden and South Korea.
They quoted investors’ claims that TRA agents were threatening them directly with actions such as “freezing or seizure of their assets and bank accounts without notification nor timely legal recourse” if they protested or appealed.
Among officials whose attendance they said would be key were the TRA commissioner-general and the minister of industries and trade, posts then held by Alphayo Kidata and Ashatu Kijaji respectively.
Mr Makamba wrote back immediately, pledging to convene the roundtable to address the concerns raised. But shortly after, he, Mr Kidata and Dr Kijaji were removed from their positions, leading to speculation in some quarters that one of the underlying objectives may have been to officially scuttle the meeting before it was held.
The new seat officials, Mahmoud Thabit Kombo (Foreign minister), Yusuph Mwenda (TRA boss) and Selemani Jafo (Industries and Trade minister), are still not settled in their new roles.
The Sefue commission will also be working against the backdrop of new quarterly record figures announced by TRA last week, which indicate that the agency beat its tax collection target for July to September, with Tsh7.79 trillion ($2.88 billion).
In TRA’s statement published on October 1, Mr Mwenda said the new numbers had surpassed annual Q1 revenue collection targets for the first time ever and asserted that they were “partly due to improved tax compliance and effective tax administration.”
TRA has been given a total collection target of Tsh29.41 trillion ($11.31 billion) in the 2024/2025 budget as the country aims to cover 67.4 percent of its Tsh49.35 trillion ($18.98 billion) expenditure plan through domestic financing.
Large taxpayers, including multinational investors, account for between 60- 70 percent of total expected collections.
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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit
Dar es Salaam — Tanzania’s President Samia Suluhu Hassan has declared an outbreak of Marburg virus, confirming a single case in the northwestern region of Kagera after a meeting with WHO director-general Tedros Adhanom Ghebreyesus.
The confirmation follows days of speculation about a possible outbreak in the region, after the WHO reported a number of deaths suspected to be linked to the highly infectious disease.
While Tanzania’s Ministry of Health declared last week that all suspected cases had tested negative for Marburg, the WHO called for additional testing at international reference laboratories.
“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”Amelia Clemence, public health researcher
Subsequent laboratory tests conducted at Kagera’s Kabaile Mobile Laboratory and confirmed in Dar es Salaam identified one positive case, while 25 other suspected cases tested negative, the president told a press conference in Dodoma, in the east of the country today (Monday).
“The epicentre has now shifted to Biharamulo district of Kagera,” she told the press conference, distinguishing this outbreak from the previous one centred in Bukoba district.
Tedros said the WHO would release US$3 million from its emergencies contingency fund to support efforts to contain the outbreak.
Health authorities stepped up surveillance and deployed emergency response teams after the WHO raised the alarm about nine suspected cases in the region, including eight deaths.
The suspected cases displayed symptoms consistent with Marburg infection, including headache, high fever, diarrhoea, and haemorrhagic complications, according to the WHO’s alert to member countries on 14 January. The organisation noted a case fatality rate of 89 per cent among the suspected cases.
“We appreciate the swift attention accorded by the WHO,” Hassan said.
She said her administration immediately investigated the WHO’s alert.
“The government took several measures, including the investigation of suspected individuals and the deployment of emergency response teams,” she added.
Cross-border transmission
The emergence of this case in a region that experienced Tanzania’s first-ever Marburg outbreak in March 2023 has raised concerns about cross-border transmission, particularly following Rwanda’s recent outbreak that infected 66 people and killed 15 before being declared over in December 2024.
The situation is particularly critical given Kagera’s position as a transport hub connecting four East African nations.
Amelia Clemence, a public health researcher working in the region, says constant vigilance is required.
“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”
The Kagera region’s ecosystem, home to fruit bats that serve as natural reservoirs for the Marburg virus, adds another layer of complexity to disease surveillance efforts.
The virus, closely related to Ebola, spreads through contact with bodily fluids and can cause severe haemorrhagic fever.
Transparency urged
Elizabeth Sanga, shadow minister of health for Tanzania’s ACT Wazalendo opposition party, says greater transparency would help guide public health measures.
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“This could have helped to guide those who are traveling to the affected region to be more vigilant and prevent the risk of further spread,” she said.
WHO regional director for Africa Matshidiso Moeti says early notification of investigation outcomes is important.
“We stand ready to support the government in its efforts to investigate and ensure that measures are in place for an effective and rapid response,” she said, noting that existing national capacities built from previous health emergencies could be quickly mobilised.
The situation coincides with leadership changes in Tanzania’s Ministry of Health, with both the chief medical officer and permanent secretary being replaced.
This piece was produced by SciDev.Net’s Sub-Saharan Africa English desk.
Source: allafrica.com
