REVENUE LOSSES: State tightens noose
DODOMA: PRIME Minister Kassim Majaliwa has directed regional commissioners and executive directors in local government authorities to spearhead the campaign focusing on sealing loopholes of loss of revenue collections The Premier issued the directive on Friday here when adjourning the 12th Parliament Meeting, during which he said loss of government’s collections is a problem that must be checked.
According to the Prime Minister, the government has crafted a number of strategies aimed at containing the problem, especially in local government authorities.
One of the strategies is the use of the Point of Sale (PoS) system. According to the PM, to enhance application of PoS system the government crafted an improved internal revenue collection system known as TAUSI so that it can be applied by all local government authorities in the country.
TAUSI system is a portal that facilitates taxpayer access to services offered by Local Government Authorities (LGAs) through self-service.
“We, the public servants, have the responsibility to supervise revenue collection as President Samia Suluhu Hassan insisted when she was closing the training that involved regional commissioners and regional administrative secretaries in Kibaha, Coast Region recently,” the Prime Minister said.
Mr Majaliwa directed government’s Information and Communication Technology (ICT) experts to devise a programme that will help to identify valid and fake receipts.
The measure will help to ensure all revenue collected goes into the government’s coffers Apart from crafting a programme to detect fake and valid receipts, the ICT experts must carry out impromptu visits in all PoS centres to establish if some officials are engaging in any financial malpractices.
Speaking on the performance of the government in revenue collection, the Prime Minister said in 2022/2023 financial year, a total of 26.24 tri/- was collected, which is equivalent to 93.7 per cent of the target, compared to 24.40 tril/- that was collected in 2021/2022 financial year.
He said of the total revenue collected in 2022/2023 financial year, a total of 21.41tril-, which is equivalent to 95. 6 per cent of the target set, was raised from taxes while 3.85 tril/-, that is equivalent to 83.5 per cent of the target set, was non- tax revenue. Revenue collected by local government authorities from their sources was 984.9 bn/-, which is equivalent to 97.3 per cent of the target set.
However, the PM said, despite the government’s effort to seal loopholes of loss of revenue, misappropriation of funds by dishonest government officials and failure to harmonise revenue collection systems has proved to be a serious matter.
As part of efforts to increase revenue collection, the Prime Minister ordered relevant authorities to continue improving the business and investment environment in the production sector, to increase private sector participation, register informal businesses to expand tax base and improve enforcement of tax laws to increase tax compliance.
He also called upon relevant authorities to properly supervise internal ICT revenue collection systems and control tax exemptions so that they do not exceed one per cent of the country’s GDP.
Speaking on health and safety of workers at work places, the Prime Minister said the Occupational Health and Safety Authority (OSHA) in 2022/2023 inspected a total of 20, 067 work places. According to the PM, OSHA facilitated installation of systems for reducing accidents, deaths and injuries that can occur at work places.
He said during the period, OSHA registered 11,036 new work places, encouraged workers to carry out routine health checkups and conducted training to employers. He said the success recorded by OSHA attracted some countries, prompting them to borrow leaf from Tanzania.
He mentioned the countries as Zimbabwe, Botswana and Kenya, adding that recently the country received requests from Eswatini and South Africa, asking for similar learning opportunity.
He noted that Eswatini and South Africa want to come and learn how OSHA uses and operates its Workplace Inspection Management System (WIMS). Speaking on Workers Compensation Fund (WCF) the Prime Minister said the payment of compensations has increased from 13.9 bn/- on June 2021 to 17.93 bn/- by June this year, meaning that the Fund has effected payment amounting to 62.04 bn/- to 11,587 beneficiaries since it started its operations in July 2016.
WCF is a social security scheme established in accordance with Section 5 of the Workers Compensation Act [Cap.263 Revised Edition of 2015] and applies to all employers and employees in Mainland Tanzania.
The main purpose for the establishment of the Fund is to provide for adequate and equitable compensation for employees who suffer occupational injuries or contract occupational diseases arising out of and in the course of their employment and in case of death, for their dependants.
