Linguistic
JF-Expert Member
- Mar 16, 2021
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Infact, TRA has nothing to do with it. And I think this is where we may be missing the point.
The tax collection challenge is akin to the profit challenge we often face in business.
The fundamental question in business is how do we grow profits sustainably? The same question - how to we grow tax revenue sustainably - can be asked.
In business, there are two ways you can grow profits sustainably:
1. Revenue growth (Volume/quantity times price)
2. Effective cost management
In an economy such as ours (low incomes/affordability), pricing power is limited and price increases are not a sustainable long-term strategy.
Volume/ quantity growth is, through value addition to existing customers and acquisition of new customers.
Cost cutting has its limitations, particularly given all the inefficient regulatory costs we face.
The same concepts apply or should apply in addressing the tax challenge, i.e.expand the tax base as a sustainable way to grow tax revenues from. There are three ways to do this:
Facilitate growth of (1) existing and new businesses, and (2) bring into the tax net existing businesses outside the tax net.
Particular attention must be paid to large, medium and small/micro enterprises, with a view to transforming micro to small, small to medium and medium to large enterprises. This is the responsibility of MIT and its agencies with the support of other relevant ministries. It is not the responsibility of TRA. TRA should only be a facilitator of this objective.
Unfortunately, our approach thus far has been to focus on “Price (tax)” variable in the equation led by TRA. And I think this is where we may be falling short. Nyani Ngabu Infantry Soldier BAK Pascal Mayalla Nk Nk .... Let us discuss
The tax collection challenge is akin to the profit challenge we often face in business.
The fundamental question in business is how do we grow profits sustainably? The same question - how to we grow tax revenue sustainably - can be asked.
In business, there are two ways you can grow profits sustainably:
1. Revenue growth (Volume/quantity times price)
2. Effective cost management
In an economy such as ours (low incomes/affordability), pricing power is limited and price increases are not a sustainable long-term strategy.
Volume/ quantity growth is, through value addition to existing customers and acquisition of new customers.
Cost cutting has its limitations, particularly given all the inefficient regulatory costs we face.
The same concepts apply or should apply in addressing the tax challenge, i.e.expand the tax base as a sustainable way to grow tax revenues from. There are three ways to do this:
Facilitate growth of (1) existing and new businesses, and (2) bring into the tax net existing businesses outside the tax net.
Particular attention must be paid to large, medium and small/micro enterprises, with a view to transforming micro to small, small to medium and medium to large enterprises. This is the responsibility of MIT and its agencies with the support of other relevant ministries. It is not the responsibility of TRA. TRA should only be a facilitator of this objective.
Unfortunately, our approach thus far has been to focus on “Price (tax)” variable in the equation led by TRA. And I think this is where we may be falling short. Nyani Ngabu Infantry Soldier BAK Pascal Mayalla Nk Nk .... Let us discuss
