THE COMMISSIONER General of the Tanzania Revenue Authority (TRA), Yusuph Mwenda, has revealed that tax evasion in the country remains significantly high, contributing to a low tax-to-GDP ratio of less than 15 percent.
This figure is below the average of many countries in Sub-Saharan Africa.
Mwenda made the remarks in Dar es Salaam during a working session with over 100 top executives from various institutions. The meeting aimed to explore strategies for enhancing collaboration between TRA and the private sector to improve the business environment and boost domestic revenue collection.
In his address, the Commissioner General pointed out that a substantial portion of tax evasion is perpetrated by some industrial producers particularly in the beverage sector where it has been discovered that several manufacturers are using counterfeit electronic tax stamps to avoid paying due taxes.
On the other hand, the CEO of the Tanzania Private Sector Foundation (TPSF), Raphaely Maganga, emphasized the need for TRA to establish predictable and business-friendly tax systems.
He noted that effective and transparent tax policies would encourage more businesses to comply voluntarily.
Maganga also raised concerns over the low tax contribution from the agriculture sector, despite its significant role in the economy accounting for more than 25 percent of the national GDP and employing over 65 percent of the population. He stated that agriculture contributes less than one percent to tax revenue, a situation that calls for systemic reforms to unlock more revenue potential from this vital sector.
He urged TRA to implement inclusive and farmer-friendly systems to increase the agriculture sector’s share in national tax revenues.
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