By Gibons Mwabukusi
Given the rapid increase of the population in developing countries like Tanzania, there is an urgency to improve the mobilisation of domestic resources for vital service delivery. Improved mobilization of domestic resources is core towards the realisation of the Sustainable Development Goals (SDGs) and is recognised as crucial in enabling developing countries to graduate from aid.
Given the rapid increase of the population in developing countries like Tanzania, there is an urgency to improve the mobilisation of domestic resources for vital service delivery. Improved mobilization of domestic resources is core towards the realisation of the Sustainable Development Goals (SDGs) and is recognised as crucial in enabling developing countries to graduate from aid.
In developing countries like Tanzania, and mostly due to rapid population increases, there is an increased urgency to improve on the mobilisation of domestic resources for vital service delivery. Improved mobilisation of domestic resources is core towards the realisation of the Sustainable Development Goals and is recognised as crucial in enabling developing countries to graduate from aid. The need to raise more tax and strengthen revenue mobilisation in most countries, especially developing ones like Tanzania is, therefore, an important component in the process of realising the SDGs.
Taxation provides governments with the funds needed to invest in development, relieve poverty and deliver public services. It offers an antidote to aid dependence in developing countries and provides the fiscal reliability and sustainability needed to promote growth.
This is the first ever simplified document analyzing Laws, Policies and procedures governing taxation of Civil Society Organizations (CSOs) in Tanzania. The idea of preparing and publishing this Tool Kit was brought up during Civil Society Organizations’ Directors Reflection Meeting in Mwanza in 2019. The idea was well received by the Tanzania Revenue Authority (TRA) and CSOs across the country. Validation of the Tool Kit was done by representatives from CSOs on 01st July 2021 at Mlimani City Conference Centre, Dar es Salaam.
Recently Policy Forum did an analysis to assess the extent to which Tanzania’s mining fiscal regime is aligned with the Africa Mining Vision (AMV). The AMV, which was adopted by the Heads of State and Government of the African Union (AU) in February 2009, serves as a regional policy tool to guide the development of mineral resources in Africa.
The tax system can directly reduce inequality by redistributing income from rich to poor, by taxing the rich more heavily and giving the government revenues to spend on public services. In Tanzania, there is a challenge of a large and increasing informal sector which has often gone untaxed hence subjecting a higher tax burden on the few within the formal sector. This in a way contributes to inequality because the informal sector partly constitutes relatively High Net Worth Individuals (HNWIS) whose incomes are not often subjected to tax.
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