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IMF turns up the heat on Dar

Discussion in 'Habari na Hoja mchanganyiko' started by Gold Digger, May 13, 2011.

  1. Gold Digger

    Gold Digger Member

    May 13, 2011
    Joined: May 21, 2009
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    Expand tax base
    In spite of important progress over the past decade, Tanzania’s tax revenue collection, at around 15 percent of GDP, is still below potential.

    The tax base could be expanded by scaling back widespread exemptions, aligning execise tax rates to the regional level, and exploring options regarding mining taxation.

    Revenues from the (mostly gold) mining sector have remained small at about ½ percent of GDP despite the sharp rise in the price of gold that has helped lift gold exports to 7 percent of GDP.

    They comprise mainly taxes on wages and some royalties, as existing agreements with mining companies have provided significant corporate income tax holidays. As a result, none of the existing gold projects have paid material income tax to date.

    Stepped-up efforts to bring to resolution past—and highly contentious—tax disputes with existing gold mines, together with improvements in mining tax administration, could generate some additional revenue.

    The authorities are committed to embark on a path of fiscal cons
    olidation and more realistic budgets. Although an effective reform of tax and spending policies requires time, a signal to investors and donors of the authorities’ intentions should be provided at the time of the 2011/12 budget.

    An ambitious spending containment is required next year in view of the need to safeguard priority spending—all the more so if risks of donor aid shortfalls and higher international fuel prices were to materialize.
  2. Saint Ivuga

    Saint Ivuga JF-Expert Member

    May 13, 2011
    Joined: Aug 21, 2008
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    Viongozi wetu hasa wa CCM ni magalasa, na tunawachagua kwa sababu asilimia kubwa ya W,atanzania hawana elimu so hatujui kinachoendelea.