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.

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.

CSOs in Tanzania have called for increased clarity of the division of functions and responsibilities of the central and local government administrations in the country if decentralisation by devolution is to work. This includes clarification on property registration and valuation responsibilities, and obligations on the maintenance of property registers and revenue data.