Speaker Zungu calls for settlement of over 11tri/- tax disputes

DODOMA: THE Speaker of the National Assembly, Mussa Azzan Zungu, has called the government to negotiate settlements with taxpayers over 11tri/- tied up in longstanding tax disputes, saying the approach could enable the government to recover a substantial portion of the money without waiting for lengthy legal proceedings to conclude.

Mr Zungu made the call yesterday in Dodoma while commenting on concerns raised by the Minister for Finance, Ambassador Khamis Mussa Omar, over challenges facing the collection of revenue tied up in various tax disputes.

The minister had raised the issue during parliamentary discussions on reports by the Parliamentary Standing Committees on Public Investments (PIC), Public Accounts (PAC) and Local Authorities Accounts (LAAC) on Wednesday.

“Although accelerating revenue collection is important, the government faced legal constraints in pursuing disputed taxes while cases remained under consideration,” Mr Zungu said.

He further said that where disputes were still at the objection stage, the Tanzania Revenue Authority (TRA) had to allow the prescribed legal processes to run their course before taking further tax collection measures.

However, he identified delays in resolving tax disputes as a major concern, noting that some cases had remained unresolved for between 13 and 14 years.

“The government should engage taxpayers and explore mutually acceptable settlement arrangements that would allow part of the disputed amounts to be paid upfront while the remaining legal proceedings continued,” he said.

Mr Zungu said the approach could enable the government to collect at least 60 per cent of the revenue currently tied up in disputes, instead of waiting for all cases to be concluded.

“Let us collect through mutual understanding, let us reach an agreement with the taxpayer on an appropriate amount to be paid in advance, and then allow the other cases to continue so that the government can obtain its revenue,” he said.

He stressed that the proposal was not intended to interfere with judicial processes or undermine the relevant legal authorities, but to establish an alternative approach to revenue recovery while protecting taxpayers’ rights.

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“Constructive engagement between the government and taxpayers could help reduce the amount of revenue locked up in prolonged disputes and strengthen the government’s ability to finance development programmes,” he said.

Contributing to the committee reports on Wednesday, Ambassador Omar told Parliament that approximately 11tri/- in government revenue remained tied up in various tax cases, urging the TRA to expedite their handling to facilitate collection.

However, he cautioned that the disputes could not all be resolved immediately because tax assessments and recovery procedures were governed by established legal requirements.

The minister explained that some cases were still at the objection stage, while others involved disputed tax assessments that had been referred to the Tax Revenue Appeals Board (TRAB).

He added that taxpayers dissatisfied with TRAB decisions could appeal to the Tax Revenue Appeals Tribunal (TRAT) and pursue further legal remedies in accordance with the law.

The parliamentary debate highlighted the challenge facing the government in balancing the need to mobilise revenue with taxpayers’ rights to challenge disputed tax assessments through established legal channels.