Crucial agreement to boost revenue collection

TANZANIA Revenue Authority has signed a Memorandum of Understanding with the world’s leading authority on cross-border taxation, International Bureau of Fiscal Documentation (IBFD) for capacity building that will help in boosting revenue collection.

The Netherlands based IBFD through its training arm, the Institute of Tax Administration (ITA), will support TRA in capacity building for tax administration.

“This is a very important step in our mission of capacity building, and it is indeed another positive step in the development of tax administration work in the United Republic of Tanzania,” said TRA Commissioner General Alphayo Kidata.

Mr Kidata said he was optimistic that the agreement will lend the taxman an extra drive in helping authorities meet their financial responsibilities.

“Many times, we are faced with a number of challenges when collecting revenues, but with such an agreement on board, such setbacks will be a thing of the past,” he explained.

According to the TRA Commissioner General, collection of tax was a sensitive government function, in the sense that it represents the exercise of a nation’s sovereignty.

He deemed it a highly complexly and dynamic affair dealing with significantly challenging phenomena, in the form of complex, unpredictable taxpayer behaviour and society’s ever increasing needs and expectations.

“Success, in such an environment, is dependent on deployment of a highly competent workforce at all levels-people with sound knowledge, relevant skills and right attitudes,” he added.

In his rejoinder, IBFD Chief Executive Officer Victor Van Kommer said the initiative will enhance tax collection in the country.

Established in 1938, IBFD has a purpose of supplying information concerning the application of tax law and to stimulate the development of tax science.

It is considered to be world’s foremost authority on cross-border taxation.

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