Commission seeks public input on tax reforms

DAR ES SALAAM: THE Presidential Commission on Tax Reforms is inviting Tanzanians to share their views on the country’s tax system.

The Chairman of the commission, Ambassador Ombeni Sefue told reporters in Dar es Salaam on Tuesday that citizens, businesses, investors and other stakeholders are encouraged to submit their opinions through various channels, including online surveys, emails and text messages.

The Commission has opened dedicated email addresses: tume@taxreform.go.tz and maboresho.kodi@taxreform.go.tz.

Additionally, online surveys can be completed at edodoso.gov.go.tz (survey number 544978) and text messages can be sent to +255 748 755 677 or +255 738 588 813.

Ambassador Sefue urged universities, research institutions and media outlets to actively participate in the process by organising discussions, facilitating debates and raising public awareness about tax reform.

The Commission aims to gather a diverse range of perspectives to inform its recommendations for improving Tanzania’s tax system.

“We would like to inform the public that the commission has begun its work and is now ready to engage with all stakeholders, whether individually or through professional associations, business communities and so forth,” he said.

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He added, “The commission will ensure that the final recommendations reflect the experiences and input of everyone contributing to improving the country’s tax

The Chairperson further said the reforms are being undertaken in response to longstanding complaints from citizens, businesses and investors regarding various challenges associated with the current tax system.

“Taxes are a vital pillar for the development of any nation. We do not believe there is any citizen who is unaware of the importance of taxes, which ultimately finance the development we aspire to and deserve,” said Ambassador Sefue.

However, he said challenges such as tax assessment and payment procedures, the multitude of taxes and the complexity of processes have sparked concerns.

The commission’s role is to conduct a comprehensive assessment of the current tax system and propose necessary improvements.

Ambassador Sefue further said that the government aims to establish a revenue collection system that is simple, fair and transparent.

“To achieve this, the commission seeks to involve as many citizens as possible to identify challenges and gather practical suggestions that will boost government revenue in a more effective manner,” he said.

One of the key challenges that the commission aims to address is the relatively low tax-to-GDP ratio in the country.

Over the past three years, Tanzania’s economy has grown by an average of 4.7 per cent, but tax revenues have only averaged around 12.1 per cent of the country’s GDP, according to him.

“This is significantly lower than the 15 per cent benchmark needed in sub-Saharan Africa to support sustainable development goals,” said the commission chairperson

Ambassador Sefue further said the government has set an ambitious target to raise the tax-to-GDP ratio to 15 per cent by the 2026/27 fiscal year, a move that would greatly enhance the country’s ability to finance development projects and reduce dependency on loans and foreign aid.

“Achieving this target will require expanding the tax base, closing loopholes for tax evasion, improving tax collection efficiency and creating a business-friendly environment that encourages entrepreneurship and investment,” he said.

Ambassador Sefue said that the commission’s success will depend heavily on the collective participation of all citizens and stakeholders.

“We cannot succeed without the input and engagement of everyone. This is a rare opportunity for every Tanzanian to contribute to a tax system that works for all,” he said.

The commission launched early this month by President Samia Suluhu Hassan.

It consists of nine members, including Professor Florence Luoga, Ambassador Maimuna Tarishi, Ambassador Mwanaidi Maajar, Leonard Mususa, David Tarimo, Aboubakar Mohamed Aboubakar, Rished Bade and Professor Mussa Assad.