ABOUT POLICY FORUM

Policy Forum is incorporated as a Non-Governmental Organization with registration number NGO/R2/00015. Policy Forum (PF) is a network of over 60 Tanzanian civil society organizations established in 2003 and 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.

BACKGROUND

Driven by a commitment to fairness and transparency in tax policy, IBP launched the Tax Equity Initiative to tackle the pervasive injustices embedded in inequitable tax systems across its areas of operation. This initiative empowers civil society to engage a diverse range of stakeholders and drive meaningful domestic tax reforms, fostering a more just and accountable tax landscape.

In many nations, particularly low-income countries, the combined pressures of rising debt, urgent recovery demands, and growing inequalities create significant challenges. Promoting fair and equitable tax systems is essential to mobilizing revenue effectively and ensuring access to vital services for all citizens.

Traditionally, the formulation of tax policies has been shrouded in secrecy, dominated by a select few policymakers and elite interests. However, a global shift is underway as grassroots movements employ innovative strategies to democratize tax systems. As partners in Tanzania, Policy Forum stand at the forefront of this movement, documenting effective approaches and cultivating partnerships to champion equitable taxation practices. By amplifying the voices of everyday citizens, Policy Forum endeavours to ensure that tax systems benefit all, enabling the government of Tanzania to fulfil its obligations to society.

About Advancing Equity and Inclusion in Tanzania's Tax System Project

Policy Forum in collaboration with IBP is now implementing a project on “Advancing Equity and Inclusion in Tanzania's Tax System.” The project seeks to contribute to transforming the tax system in Tanzania into one that is pro-poor and minimizes the burden of indirect taxes particularly on low-income households and marginalized communities and integrates gender considerations into tax policies, hence cultivating into tax equity.

This political economy analysis will help understand the dynamics of power, interests, and relationships that influence tax policies in Tanzania. This analysis will provide insights into external factors, such as economic changes and political shifts that impact tax legislation and compliance. This understanding can guide strategic advocacy efforts, enabling reform coalitions to align their strategies with the current political landscape and enhance their chances of success.

Project Stakeholders

Some of the key stakeholders that the project is looking to target are;

• Government Institutions: Ministry of Finance, Tanzania Revenue Authority (TRA), Parliamentarians, National Audit Office of Tanzania, Tanzania Investment Centre, President’s Office Regional Administration and Local Governance.
• Like minded Civil Society Organizations (CSOs): Advocacy coalitions (youth), tax justice networks, women’s rights organizations.
• Private Sector: Business associations, SMEs, and representatives from the informal economy like the Tanzania Private Sector Foundation (TPSF).
• Development Partners: International organizations such as FCDO, NORAD bilateral donors like UNDP, and technical experts.
• Academia and Research Organizations: Experts in tax policy, equity, and economic development.
• Media: Key media houses and channels for both social and traditional media. The focus will be for individual media houses or media organizations.

OBJECTIVES OF THE ASSIGNMENT

Main Objective

This assignment aims at understanding the interplay between political, and economic, factors in shaping policy outcomes for Tax Equity in Tanzania’s tax system. This includes examining the opportunities and obstacles for advancing equitable policy reforms and administration, especially to the marginalized groups.

Specific Objectives

1. To examine the level of transparency and participation of the marginalized groups in tax policies.
2. To assess gender and social economic disparities that exacerbate tax burden hence affecting tax equity.
3. Map out opportunities, obstacles or gaps for enhancing an equitable tax system (policy and administration)
4. Provide policy and administrative recommendations including feasible reforms and institutional strategies that align with the political and economic context.

SCOPE OF THE ASSIGNMENT

The consultant will design suitable methodologies which will be presented and agreed during inception meeting. More specifically, the PEA seeks to answer the following questions:

1. What is the Government’s perception on equity and how does it reflect in policy development?
2. Who are the key stakeholders in Tanzania’s tax system, and how do their interests and political incentives influence tax policy?
3. What economic factors, such as the informal sector or income inequality, shape Tanzania’s tax base, and how do corporate tax structures impact equity?
4. How do Tanzanians perceive the fairness of the tax system, and how does it affect marginalized groups like women and youth?
5. Does Tanzania’s tax administration have the resources and capacity to implement equitable tax policies, and what operational challenges do they face?
6. How do international actors, regional tax harmonization, and global tax issues impact Tanzania’s tax equity goals?

e) What feasible reforms could improve tax equity, and how can Tanzania balance revenue generation with fairness?

7. How are Civil Society Organizations in Tanzania contributing to reform and what skills do they need to advance the quality of their engagements throughout policy processes?

The consultant is expected to use both primary and secondary data, as well as qualitative and quantitative data.

Deliverables

The consultant will be required to prepare and submit the following.

1. An Inception report together with a methodology and workplan
2. A draft of PEA report with key findings and actionable recommendations
3. A draft engagement strategy for PF Members and partners
4. To facilitate a validation session with stakeholders in collaboration with Policy Forum.
5. A final report of the study

Proposed Work Plan

This assignment intends to take 33 days, as follows;

Task                                                                                                                     Days

1. Sharing of Inception Report                                                                             1

2. Data collection                                                                                                  25

3. Analysis of data and report writing                                                                    4

4. Submission of Draft PEA report and Engagement Strategy                             1

5. PEA Validation                                                                                                  1

5. Sharing of Final Report                                                                                     1

 Total number of days                                                                                           33