Govt pushes for research on e-business taxation

DAR ES SALAAM: DEPUTY Minister for Finance, Mr Hamad Hassan Chande has directed the Tanzania Institute of Accountancy (TIA) to come up with detailed research on how to strengthen taxation on e-businesses in the country.

He commended TIA for enhancing professionalism in the collection of country’s revenue by producing competent graduates expressing optimism that the research will unlock hurdles for attaining effective e-business taxation.

Gracing the 16th graduation ceremony of the institute held in Dar es Salaam on Friday, Mr Chande said the country’s on-going digital revolution requires the Tanzania Revenue Authority (TRA) to utilise top technologies born from the institute’s research, more than ever before.

E-business involves buying and selling goods and services over the internet, by using electronic devices including smartphones, computers and tablets.

He said currently many e-businesses in the country are operating with no or minimal tax payment pressing a need for researchers to offer a basis for effective tax collection on the businesses.

“Rollout various researches with solutions to real time e-business taxation challenges culminated by transition to digital economy. We need e-business to be conducted appropriately with effective taxation,” Mr Chande said.

“The government is aware of the existing loopholes on e-business taxation’’ he said.

He said TIA should also undertake research on means to mitigate the online tax evasion and identify new sources of the government revenues.

To boost tax literacy in the country, Mr Chande directed TIA to start a special tax short course for economic stakeholders including businesspersons and citizens.

Furthermore, Mr Chande urged the Class of 2023’s graduates to apply all their skills after being employed or opt to employ themselves with patriotism, integrity shunning from bad behaviours which can jeopardise their productivity and humanity.

He hinted that the East African Community (EAC) member states have already chosen the institute to be the centre for excellence in customs and tax training, saying it is up to students to maintain the good reputation of the institute by working hard and honestly.

Nevertheless, Mr Chande reaffirmed the government commitment through the Ministry of Finance and TRA in creating a friendly learning environment at the institute by allocating funds for improvement of infrastructure including hostels.

He also directed the institute to maintain good relations with other universities within and beyond Africa for swift exchange of knowledge on custom and tax issues in a digital revolution.

Earlier, TIA Rector, Professor Isaya Jairo said the 16th graduation ceremony presents 508 graduates of whom 215 are women and 293 are men, all together are potential workforce for TRA and the country’s economic development at large.

Highlighting the achievement of the institute, Prof Jairo said TIA which is a public institute since its establishment in 2007 has produced over 22,000 graduates who are serving at the TRA with palpable delivering.

Likewise, he said the number of students admission in a year has maintained an upward trend from registering only 974 students in 2008 to over 1,700 this year pledging to continue producing graduates who fit market requirements.

One of the graduates, Ms Gaudensia Valentine (25) who emerged as overall best student in the Bachelor Degree in Customs and Tax Management Programme by scoring a Grade Point Average (GPA) of 4.6, told the Sunday News that her secret behind the success is centred on good upbringing from her parents, cooperation with fellow students and ambitiously working hard.

Ms Valentine advised the government to invest more on education in a bid to realise a favourable learning environment including practical learning.  She said her dream is to become amongst the country custom and tax management top academicians.

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