CALL FOR CONSULTANCY : The Nexus between the Taxation of the Informal Sector and Inequality

In Tanzania, there is a challenge of a large informal sector which has often gone untaxed hence subjecting a higher tax burden on the few within the formal sector. The informal sector is generally characterized by a high level of under-regulation by the government, cash transactions (which makes it difficult to properly track the amount of revenue generated), and improper-record keeping. As a result of these problems, the informal sector has been and remains very difficult to tax.



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