DAR ES SALAAM: THE government has affirmed that the effective tax policy is instrumental to tackle poverty and foster the country’s sustainable development.
Mr Rished Bade, Commissioner for external finance in the Ministry of Finance, stated this on Wednesday in Dar es Salaam on behalf of the minister for the portfolio, Dr Mwigulu Nchemba.
Mr Bade argued that taxation is a key foundation for economic growth because it is through which the government mobilizes revenue necessary for funding public infrastructures for social-economic activities.
“Tanzania has made significant reforms in recent years, particularly trying to modernize tax administration and through international cooperation the Tanzania Revenue Authority (TRA) has managed to develop fiscal devices,” he stated.
He was speaking at the International Conference on Tax for Growth which was jointly organized by the TRA, International Growth Centre (IGC) and the Policy Research for Development (REPOA).
The conference involved different experts, including representatives of revenue authorities from Uganda, Kenya, Rwanda, Burundi and South Sudan, international researchers from across the world, civil societies, academia and policy makers.
“Policy makers benefit out of the researches to strengthen tax policy reform. This meeting will give opportunity for researchers to hear from policy makers as well,” Mr Bade said. Commenting, Mr Lawrence Mafuru, Executive Secretary of the President’s Office Planning Commission, said: “for us to be able to achieve the development agenda, we need to seriously control our resources, therefore, domestic revenue or domestic resources should increase.” Mr Mafuru also pointed out on the issue of economic inclusivity, arguing “if we are to achieve the inclusivity we clearly need, we need to work hard in expanding our domestic resources.”
On his part, Executive Director of REPOA, Dr Donald Mmari said the conference aimed at exchanging of knowledge and experiences.
“It is impossible to attain economic growth without domestic revenue that is needed for providing economic and social services,” Dr Mmari stated.
He argued that domestic resources mobilization remains crucial for helping African countries to finance economic stimulus and sustainable development goals as well as adaptation to climate change. On his part, Mr Mcha Hassan, TRA’s Deputy Commissioner General, said the conference was a platform to promote evidence-based cost making and incorporate research findings.
He explained that the TRA and IGC are committed to continuing their joint efforts in various research projects aimed at advancing data giving solution.
“In TRA we are steadfast in our mission to make it easy to pay tax and make life better. The ongoing reforms in digitalization amplify this commitment. By embracing technology, we strive to streamline process in enhancing transparency in tax payment,” he noted.
He, however, admitted that tax evasion hampers the authority’s investment efforts, hence underscored the need to motivate tax compliance.
