Mkapa calls for reforms in tax collection
 
2005-09-20 08:28:22
By Guardian Reporter

	President Benjamin Mkapa (L) is briefed by Tanzania Ports Authority Assistant Director General Peter Mtandu about the use of flow meters in the offloading of petroleum products at Dar es Salaam Port yesterday. President Mkapa was inspecting Tanzania Revenue Authority (TRA) operations.

President Benjamin Mkapa called yesterday for more reforms in the tax collection system within the Tanzania Revenue Authority (TRA) to increase productivity in business and other economic sectors.

Speaking to TRA staff in Dar es Salaam yesterday, President Mkapa told the revenue authority to come up more transparent and predictable tax collection regime that suit taxpayers.

’’Taxpayers are key stakeholders in the revenue collection; they need to be respected and suitable methodology of paying taxes for their operations,’’ said Mkapa.

The president hailed TRA employees for their hard work, which he said had increased revenue collection from 25bn/- to about 150bn/- per month.

He urged them to seal the loopholes through which the government loses revenue to tax-evaders.

’’More revenue is needed to help the government meet the demands of the country,’’ said Mkapa.

He challenged TRA to exceed government targets in revenue collection, saying the ratio between revenue collection and the gross domestic product is still minimal compared with Malawi, Kenya and other neighbouring countries.

’’I am sure TRA can exceed their achievements and help the government scale down donor dependency in the running of its affairs,’’ said Mkapa.

The president also commended the anti-corruption drive designed by the revenue authority to check the vice amongst its employees.

Among the measures adopted to rid the body of corruption are sacking of corrupt officials and increasing salaries for staff.

’’I appeal to you to forge ahead with the fight; the war against corruption within TRA should be made a permanent task,’’ said Mkapa.

Mkapa called for strengthened and tightened measures to curb tax evasion to improve the government’s financial capacity to strengthen poverty reduction strategies, commonly known as Mkukuta.

The implementation of Mkukuta coupled with health, education, HIV/Aids and other projects under Mkukuta need money, noted Mkapa.

”The fourth phase government would demand from you more revenue to implement pending development and poverty related projects under Mkukuta,” said the President.

The third-phase government, he said, had established strategies to increase the efficiency and effectiveness of TRA, including the improvement of the tax base, a crucial component in tax collection and speeding up economic growth.

• SOURCE: Guardian