Eastern and Southern African Universities Research Project (ESAURP) chief executive officer Prof Teddy Malyamkono (1st-L) speaks at a press briefing on the launch of a book titled, ‘Transforming the Informal Sector.

A book on formalisation and emphasis on Tanzanian informal traders to pay tax: Transforming the Informal Sector, “How to Overcome Challenges” is expected to be launched tomorrow in Dar es Salaam.

“The government recognises that it will be difficult to fight poverty without enabling the local traders to pay tax, by helping them to expand government revenue,” said Professor Ted Maliyamkono.

Briefing the media in Dar es Salaam yesterday, Maliyamkono who is the Executive Director for Eastern and Southern African Universities Research Programme (ESAURP), said current research shows 18 percent of informal traders do not pay tax.

He said at present foreign investors have good systems of paying tax compared to local traders, adding that in order recognise the informal traders the government should to set up a bank to provide loans to local traders and locate official business places for them.

Minister of State, Prime Minister Office, Investment and Empowerment, Dr.Mary Nagu, is expected to grace the book launch event.

According to Ruta Mutakyahwa, ROMME (Resource Mobilisation and Management) Centre Consultant, Researcher and Trainer, the research result on tax payment of 2009 showed that the government did not receive enough tax as it supposed.

The research shows that the government will expand its revenue by empowering the informal traders to be formalised and pay tax.