Vice-President Dr. Philip Mpango emphasized the imperative of reevaluating Tanzania's tax systems to synchronize with the evolving economic landscape since 1990. Addressing the Tax and Investment Forum for the year 2024 in Dar es Salaam, Dr. Mpango highlighted the need to adapt tax policies to incorporate emerging trends, including the integration of small-scale entrepreneurs into the taxation framework.
VP acknowledged concerns regarding the current tax system's impact on investment and business operations, urging Ministers of Finance and Investment to address the issue promptly. He underscored the detrimental effects of non-compliance and tax evasion on the government's ability to fulfill its obligations to the public, noting that Tanzania's tax revenues have remained below 12 percent of the national income, falling short of the African average of 15.6 percent. He highlighted significant reforms undertaken by the sixth phase of government to address investor concerns, with over 460 improvements made to policies and tax management systems since 2010.
The Vice-President advocated for a collaborative approach to policy-making, emphasizing the importance of government responsiveness to taxpayers' and investors' recommendations.
Dr. Mpango also stressed the significance of leveraging public-private partnerships and mitigating risks associated with digital tax collection methods. Minister of Planning and Investment, Professor Kitila Mkumbo, and Finance Minister Mwigulu Nchemba echoed Dr. Mpango's sentiments, emphasizing the need for broadening the scope of taxation, improving tax legislation concerning small-scale entrepreneurs, and enhancing transparency and fairness in tax management. They emphasized the importance of bolstering private sector involvement in economic growth and increasing domestic income. The officials highlighted challenges such as low voluntary tax payments and the need for national collaboration to address tax-related issues effectively.