Treasury working to restore aid tax waiver

22Apr 2021
By Guardian Reporter
The Guardian
Treasury working to restore aid tax waiver

​​​​​​​THE Ministry of Finance and Planning is working on a directive by President Samia Suluhu Hassan to reinstate the tax waiver on foreign aid to facilitate implementation of strategic projects.

Dr Mwigulu Nchemba.

Dr Mwigulu Nchemba, the minister, made this affirmation yesterday at a meeting with Niinuma Takashi of the embassy of Japan who sought to know the progress on the matter.

He said the president issued the directive to shore up foreign aid hindered by the taxation proviso deducted from the same aid amount.

“We have started working on it and up to now we have already prepared a circular. We are only waiting for approval from the cabinet,” he elaborated.

He assured the envoy that the government will continue to cooperate with Japan on various issues to ensure development of the people for both sides, while the envoy said his country will continue supporting Tanzania in its development endeavours.

Japan intends by fund development projects such as the port expansion programme, noting that solving the issue of taxing foreign aid is the premise for progress in discussions on funding other projects so that they can be resumed.

Meanwhile, officials of the Tanzania Revenue Authority have started touring businesses to address challenges affecting them, to facilitate friendly and voluntary tax payment among all categories of traders and business operators.

Rose Maendeka, lthe acting manager for taxpayer education at TRA headquarters, said the process has already started in of Dar es Salaam, Dodoma, Singida, Mwanza, Lindi, Mtwara and Mbeya regions, . During the meetings the taxman shall be informing business operators on the best way to use Electronic Fiscal Devices (EFD), she said.

Tirson Kabuje, assistant TRA manager for Kilimanjaro region said the visits will be conducted at Mbuyuni, Kiusa, Kiborloni and later district by district.

The Regional Commissioner, Dr Anna Mghwira said the tax body must emphasize on more training to facilitate voluntary tax payment, after President Samia ordered TRA to stop harassing taxpayers but devise strategies to expand the tax base so as to meet collection targets.

Speaking after coming into office, the president said tax collectors were employing enforcement tactics that pushed scores of big businesses into bankruptcy, tasking the tax collecting body to improve its methods to facilitate more business to reopen, thus widening the tax base.

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