Voice of Commonwealth

Tanzania: MPs Call for Business Protection

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Members of the Tanzanian parliament have requested the government to standardize the modalities of tax collection to safeguard available businesses as well as draw in new ones in order that the country could execute its development plans.

The members have also requested for the carrying out of the on-going strategic projects and completion those projects   highlighted in the 2021/22-2025/26 national development plan be fulfilled. The lawmakers made the remarks when contributing to the government’s third five year national development plan slated for 2021/22 to 2025/26 and priorities set in the proposals for the roadmap plans for the year 2021/2022.

Since the implementation of the projects require funds, the law makers think it’s appropriate for the government to carry on with the  collection of taxes and that it is also better for the tax man, and for Tanzania Revenue Authority ( TRA)  to put in place  favorable conditions for taxpayers, specifically going through the methodology in revenue collections.

Geita Rural MP Joseph Musukuma (CCM) opened the debate, telling the House that some businessmen were closing their shops due to the unfavorable approach by the TRA in collecting taxes. For business to prosper, Mr Musukuma urged the government to be attentive and address challenges facing the business community, instead of rushing to penalize or close businesses whenever there is a delay on tax payment.

“If the government will continue this way, without taking into account advice from laymen on the ground, then chances are high for more businesses to be closed, as a result the government will end up losing revenue and expand the scope of unemployment,” he said.

It was suggested by Mr. Musukuma that President John Magufuli should meet with the business community and have them express the concerns and challenges they are facing and to suggest the way forward which was the same approach used for bettering the minor sector. MP Mtama seconded the view of Mr. Musukuma. Nape Nnauye (CCM) debated that the collection of taxes should the sole responsibility of the TRA and taskforces should not be used for this purpose as in most instances they abuse the authority and power bestowed on them.

 Mr. Mtama said that instead of the collection of taxes being a smooth operation, the task force is seen to be using excessive force, which results in the businesses fraternity being harassed and frustrated. “The job should be done by TRA officials as they are specialists on that, they were trained for the job, let them do it instead of coming up with task forces, that will kill businesses,” he said. He was of the view that the use of task forces in tax collection brings short-term joy, but in the long run, it’s a trouble for the future of businessmen and government itself as it will lose the collections after closure of the businesses.

Mr. Mtama’s view is that the collection of taxes by task-forces is short lived and happy but agreed that on the long-run it’s troublesome for future businessmen and the government itself as they will lose the collection once the businesses close down. “The number of businesses being closed is too much, the government should stop using task force since they aren’t skilled for the job,” noted the Mtama MP.

Mafinga Town Legislator, Cosato Chui (CCM) seconded Mr. Mtama’s views and indicated that the taxman should develop an easier  system in which taxes could be collected instead of subjecting the businessmen  having to shut down their bank accounts the domino effect of which is them having to close down the business as well. He also spoke of the need for continued efforts on providing a conducive environment for businessmen to pay their taxes instead of being harassed and embarrassed. “There must be a good environment for businessmen to fulfill their legal obligation of paying tax, the authority should stop the tendency of closing bank accounts of businessmen who have huge amounts of money, because that leads to closure of business and expands the scope of unemployment,” he noted.

For their part, Vunjo MP on CCM ticket Dr Charles Kimei and a Special Seats MP Jesca Kishoa (Chadema) said despite an increase in figure of amount being collected by TRA, still the country is collecting less. According to them, it is essential that the government mend the gaps that prevent the actual collections as the annual collection are equal to 13 percent of the Gross Domestic Product (GDP).

“With these collections I’m sure there is something missing, the government has to work on it to ensure the relevant tax is obtained,” said Dr Kimei. For his part, Presidential nominee MP Humphrey Polepole recommend that all strategic projects should be completed before 2025. “Let’s have all the projects on the electricity sector implemented during President John Magufuli term in office,” he urged. His points were in line with what was said by Butiama MP Jumanne Sagini (CCM), who called for a harmonized process that would cut bureaucracy in implementing the plans for quick development.

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