Provision of Consultancy Services for a study on Fair Tax Monitor (FTM)

1. Introduction

The Policy Forum (PF) is a network of over 60 Tanzanian civil society organizations drawn together by their specific interest in augmenting the voice of ordinary citizens to influence policy processes that help in poverty reduction, equity and democratization with a specific focus on public money accountability at both central and local levels. Policy Forum’s long- term impact is “Contribution to enhanced governance and accountable use of public resources by improving civil society capabilities and opportunities to influence and monitor policies.”

2. Background

Taxation should play a pivotal role in shaping Tanzania's economic development, social welfare, and achieving gender equality. To pursue sustainable and inclusive growth, it is imperative to design and implement tax systems with these important perspectives.

However, successive Governments in Tanzania have been grappling with generating enough resources1 to reduce poverty and fund essential public services in a way that does not place an undue burden on the poor and marginalized whilst having to make decisions on which services should be prioritized. Since women are particularly vulnerable to poverty2, robust and regular assessments of how Tanzania can increase revenue while positively impacting the lives of the marginalized are constantly required.

Nevertheless, gender concerns in taxation continue to receive inadequate attention and neglect or are consistently relegated to the outskirts of policy discussions and decision-making processes. Consequently, these macroeconomic policy failures demonstrate a clear association with the extent of gender disparities.

Moreover, transparency and accountability are essential pillars of an effective tax system. Transparent tax policies allow citizens, civil society organizations, and other stakeholders to comprehend and engage in the tax system's decision-making processes. Accountability ensures that tax revenues are collected, managed, and allocated in a fair and equitable manner.

   3. Study Objectives

This study aims to delve into the assessment of Tanzania's tax systems with a specific focus on progressiveness, transparency, and accountability while incorporating a gender perspective. Tanzania has made significant strides in its economic development and poverty reduction efforts. However, the effectiveness of its tax systems remains largely unexplored. Specifically, the objectives of this study are to:

1. 1. Produce scores of Tanzania’s national fiscal system based on the outcome of the

research using the prescribed FTM Scoring Methodology Framework.

1. 2. Evaluate Tanzania’ fiscal system as per the common research framework that will be attached to this ToRs. This objective involves assessing the level of transparency and accountability within tax policies and structures. The study seeks to determine the extent to which citizens, civil society organizations, and other stakeholders can comprehend and engage in the decision-making processes related to taxation.
   3. Examine the differential impact of Tanzania's tax system on men and women by employing a gender lens. The study will analyse the effects of tax policies, such as income tax, value-added tax (VAT), excise duties, and other indirect taxes, on gender equality and women's economic empowerment. By identifying gender-specific effects, the study aims to uncover potential biases and propose improvements for a fairer and more equitable tax system.
   4. Contribute to evidence-based and actionable policy recommendations that enhance the progressiveness of Tanzania's tax systems through a gender lens. The objective is to advocate for a tax system that actively supports gender equality, reduces gender disparities, and fosters an environment conducive to women's economic empowerment and social inclusion.
   5. Develop a comprehensive Plan of Action to ensure the realization of gender mainstreaming in tax governance. This objective aims to outline a strategic framework that integrates gender considerations into the design, implementation, and monitoring of tax policies and systems. The study will propose specific actions and measures to promote gender equality and women's empowerment within the tax governance framework of Tanzania.

NB: The study will be guided by the Common Research Framework attached to these terms of reference.