Tanzania is endowed with various precious minerals such as gold and diamond and like other African countries rich in resources, this fact raises questions on why the extractive does not contribute enough to the economic development of the country. On the contrary, it is widely believed that the companies involved in the sector on the continent disproportionately benefit. To add salt to the wound, the fact is that the sector not only has had so far had little net fiscal impact and this is unlikely to change in the coming years, but the IMF reports that mining revenues for governments are not expected to grow much soon partly because of large embedded tax holidays. Furthermore, revenues from the extractive industry for governments are not expected to rise because the sector has been marred by secrecy and corruption leading to scandals like those involving mining companies that in recent years are said to have been understating their tax liabilities in Tanzania.