Taxman urged to establish tax exemption category for CSOs

DAR ES SALAAM: The Tanzania Revenue Authority (TRA) has been urged to establish a tax exemption category that would accommodate civil society organizations (CSOs), as the current framework imposes an unfair tax burden on them.

At an event organized by the Tanzania Bora Initiative (TBI) and attended by 12 civil society organizations in Dar es Salaam on Friday, Senior Monitoring and Evaluation Officer from the Ministry for Community Development, Gender, Women, and Special Groups’ Registrar of Non-Governmental Organizations, Mr Charles Komba stated that stakeholders have unanimously voiced their concerns.

They urged the tax authorities to recognize that CSOs are not profit-making entities and should be distinguished from companies in paying taxes.

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Stakeholders also suggested the formation of the National Youth Council and recommended placing it under the Prime Minister’s Office.

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Mr. Komba noted that amendments made to the Civil Society Registration Act No. 3 have created a supportive environment for youth-led organizations, resulting in increased registrations. However, he acknowledged that challenges remain.

Mr. Ismail Buro, Deputy Director of TBI, stressed the critical role of the 4R’s philosophy in addressing legal and policy challenges affecting youth.

Nasib Richard, Senior Officer of the Youth Development Department at the Prime Minister’s Office, acknowledged the increased enthusiasm among youth for seizing national and international opportunities since President Samia took office.

He attributed this to improved diplomatic relations, which have opened international platforms and funding opportunities for youth.

Despite these advances, he noted ongoing challenges in the business sector. The government is actively reviewing tax laws and providing education to ensure these laws do not become obstacles to their efforts and the creation of various opportunities.

Participant Mr. Lubatuka Japhet pointed out that many youths are hesitant to register their businesses due to fears of high tax burdens.

He emphasized the importance of including youth in the policy-making process.