Norway pumps $5m into TRA tax modernization plan

12Mar 2016
Grace Kambaulaya
The Guardian
Norway pumps $5m into TRA tax modernization plan

THE Norwegian government will support Tanzania Revenue Authority to the tune of $5m through the basket fund to finance its tax modernization programme.

Tone Skogen (r) speaks to the journalists in Dar es Salaam. Left is Ashatu Kijaji

Deputy Minister for Finance and Planning Ashatu Kijaji said during the signing agreement that the tax modernization programme would help to increase the country’s revenue collection effort.

Kijaji said such a move would also help the tax body to achieve its vision of increasing domestic revenue contribution through enhancement voluntary tax compliance of large taxpayers.

She said through the programme, there would be improvement in audit effectiveness, efficiency and quality alongside the establishment of the International Taxation Unit (ITU).

“The objective of the support programme between Norway Tax Authority (NTA) and TRA is to attain a reduction in the tax gap through improved tax compliance,” she said.

She pointed out that the support would contribute to further improvements in TRA’s enforcement capacity while increasing revenue.

“We will conduct an intra-group service and interest to TRA auditors from the revenue department,” she said.
NTA and TRA discussed transfer pricing cases including telecommunication and gas sector development.

According to her, TRA and NTA conducted joint audits in order to clean backlog cases of major mining companies. The results from audits were positive where by TRA managed to reduce the declared losses as well as converting the declared loss to addition taxes.

The deputy minister said Tanzania had benefitted from the Norwegian government’s technical assistance in implementing a three-year project aimed at developing a modern fiscal and regulatory framework for extractive industry in the country.

She said the three year project that started in finance year 2012/2013 was implemented through a number of government ministers and institution from whom a permanent nation modelling project team for mining, oil and gas would be drawn.

The institutions include TRA (secretariat), ministry of finance and others.

Norwegian Deputy Minister of Foreign Affairs Tone Skogen said the aim of the launch was to increase efficiency and quality of tax audit of corporations, increase in negotiation capacity in the extractive industry and to escalate tax revenue.

The deputy minister also announces that the Norwegian contribution to the skills for oil and gas – Africa (SOGA) vocational training initiative.

“Norwegian efforts are aimed at supporting business development in Tanzania and to attract foreign direct investment to the county. This will help Tanzania achieve the goals set out in Vision 2025,” she said.