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Pay dividend, tax to finance govt community projects

IN a democratically elected government the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system and that is where Tanzania falls in.

This is a peaceful country where all the nationals define themselves with the nation not tribal bases and related segregations, which only farther divide them.

However, for the country to remain peaceful with great economic strides, its people must keep on being patriotic and hardworking and support the government in implementing domestic community projects.

In other words, these projects ranging from education, health, public utilities like water, sewer, and electricity to transport and communication infrastructures must be funded by the government and owned or guarded by the same nationals for the future generations to also inherit.

But, it should be noted that the government (custodian of the people) does not engage in any business of making money (profit), hence must be supported.

In supporting the government, companies and institutions normally have their Dividend Policies, which in simple words is a financial decision that refers to some proportion of a firm’s earnings to be paid out to the shareholders (read also the government that is in the business and guarantees them security and peaceful environment to do business).

Here, a firm decides on the portion of revenue that is to be distributed to the shareholder/custodian of the country that, also in turn plough it back as funds to finance community projects.

It should be noted that taxes collected by the government are not always enough; hence institutions and companies chipping in with dividends have a major role to play in any community development.

With that in mind, as a taxpayer one should strive to pay taxes without being pushed as a civic duty to enable the government’s programmes flow.

Companies and institutions should know that dividends they remit as well as taxes paid by other nationals help in healthcare programmes to purchase drugs and build hospitals among others.

They also help to fund national defence and security-related programmes, which are also for the benefit of the very people living in the country as nationals to protect it.

Paying taxes in any country is an obligation that all citizens should be educated on, although doing so is also a requirement of the law, and if you do not pay your taxes, the government agency that oversees taxes, like Tanzania Revenue Authority (TRA) will require you to pay your taxes or else face penalties, such as fines or going to jail.

WHEN the Tanzania Investment Centre (TIC) was ...

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Author: EDITOR

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