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- Jul 30, 2008
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Minister of Foreign Affairs and International Cooperation, Bernard Membe
Tanzanians in Diaspora are proposing a suitable mechanism of taxing Tanzanian investors and businesspeople living abroad in a spirited drive to boost up the country's revenue-base.
This comes as reports say that the government is losing a lot of money in terms of taxes from investments and businesses owned by Tanzanians living abroad due to lack of a sophisticated formula to collect the revenue from its citizens abroad.
An association of Tanzanians living in the United States in collaboration with the government will next month organize a Diaspora meeting during which the Tanzania Revenue Authority (TRA) and other related institutions would be invited to study ways of collecting revenues from Diaspora Tanzanians.
"We expect to organize a big Diaspora meeting on July 1 up to 4, this year in the US. This time around, we have invited TRA so that they learn from their US counterparts how to collect taxes and other revenues from their citizens living outside," said Alfred Mkunga, Country Director of Diaspora Council of Tanzanians in America (DICOTA), on the sideline of the second Diaspora stakeholders meeting organized by the Foreign Affairs and International Cooperation Ministry.
The focus of the Diaspora meeting scheduled for US, according to Mkunga, is to find out, among other issues, appropriate approach through which Tanzania Diaspora in different parts of the world could significantly contribute to the country's development.
"Of course, discussions will take place in the US but what will come out of the meeting would be applied for Tanzanians living in different countries. I am sure, TRA and relevant government institutions will be exposed to formulas used by other countries in collecting revenues from their people living outside," said the DICOTA director.
"The idea is to make sure that Tanzanians living inside and outside the country contribute to the development of the country…I believe, there are many Tanzanians in the US, UK and elsewhere in the world, who could make positive contributions in these endeavours," he added.
Another leader of Tanzania Diaspora association in the United Kingdom, Emmanuel Tayali, mentioned lack of linkages between the government institutions and local Tanzania Diaspora, something which he said slows down the speed of contribution of Tanzanians living abroad.
There are a number of Tanzanians living outside, according to Tayali, who could immensely contribute to the country's economy but they lack government support that could link them with national investment and business institutions.
"We have to do something to assist these local Diaspora in UK, US and other developed world, by linking them with organs like the Tanzania National Business Council (TNBC) and Tanzania Investment Centre (TIC)," said Tayali, adding: "Diaspora have great potential to support our country, but they lack linkages."
The meeting also discussed the problem of lack of organisation amongst Tanzania Diaspora, a critical drawback in the realisation of meaningful contribution of Tanzanians living outside the country.
Head of Diaspora Desk in the Ministry of Foreign Affairs and International Cooperation, Bertha Somi, said the government is working out strategies in collaboration with Diaspora leaders in identifying Tanzanians living abroad, what they are doing, which cities and streets they live in.
"While the government is trying to organise them, Tanzanian Diaspora themselves currently living outside and ex-Diaspora should assist us in the identification process and coordination of their activities," said Somi.
Opening the second Diaspora meeting, the Minister of Foreign Affairs and International Cooperation, Bernard Membe, reiterated the government commitment to engage the Diaspora in the country's development processes.
In a speech read on his behalf by the ministry's Permanent Secretary, Sazi Salula, the minister said the government would continue encouraging and assisting Tanzanians in the Diaspora to organize themselves in formal associations to facilitate contact and communication.
"In this context, the government is committed to support and facilitate their stay abroad as well as their return. We will continue to improve communication between the homeland and Tanzanians of the Diaspora," said Membe.
Diaspora stakeholders yesterday proposed to the government, among other things, the speeding up of enactment of the act on dual citizenship, deploy professional commercial experts to its embassies abroad, improve banking processes, reduce costs of transferring money to Tanzania from abroad, in a quest to support Tanzania Diaspora and fast-track their contributions to the country's economy.
SOURCE: THE GUARDIAN
