Tanzania losing $ 299.5m from tax evasion each year - LHRC

04Aug 2021
By Guardian Reporter
The Guardian
Tanzania losing $ 299.5m from tax evasion each year - LHRC

​​​​​​​TANZANIA is losing USD 299,485, 211 in tax revenues every year due to tax evasion.

LHRC Managing Director, Anna Henga.

In addition, 700,000 workers die every year worldwide due to working for long periods contrary to World Health Organisation (WHO) guidelines.

This was revealed on Saturday by the Legal and Human rights Centre (LHRC) when launching the Human rights and Business Report in the country for 2020/21.

Submitting the report, Senior LHRC officer from its Research Department, Fundikira Wazambi said from the situation, Tanzania has been cited as being among 70 countries that lead in tax evasion.

He said out of that sum, USD 279,081,381 or 93 per cent of the money being lost is from tax evasion done by various companies by depositing their profits in foreign accounts.

Wazambi said the amount of money that Tanzania was losing every year can pay salaries for 135,577 nurses in one year.

“Another report on taxation provided by Justice Network in Africa (TJNA) for 2021 shows that Tanzania is among 70 countries whose tax systems has loopholes for international companies to pay little tax,” he added.

In regard to work hours, he said there has been challenges for employers disregarding approved working hours whereby 85 per cent of workers who participated in the research said they were free to go home after laid down working hours.

LHRC Managing Director, Anna Henga said the research aimed at to find out how businesses respects human rights whereby 15 regions were researched upon through controlling institutions, firms, workers, drivers and construction workers.

Henga said main issues they came across with during the research was employment contracts whereby these dropped as 59 per cent of those questioned said had work contracts as compared to the previous year.

“The number of workers with work contracts was 25 per cent compared to those with contracts in 2019 when 84 per cent said they had work contracts,” she added.

Henga appealed to the government to visit companies and institutions to see the actual situation instead of waiting to receive reports many of which are cooked up, and added that LHRC will submit its report to relative authorities for action.

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