Since the current income tax system mainly focus on the formal sector with little to no account of informal sector, about 89 per cent of Tanzanians do not pay tax revealed Mzumbe University Senior Lecturer Dr Prosper Ngowi yesterday.
He was addressing journalists during a workshop organised by ‘Action Aid International in Tanzania’ to discuss the country’s current taxation system.
The Norwegian Church Aid funded the research earlier this year, and the results show that the current taxation system focuses more on the formal sector hence takes to account but a spec of the productive masses leaving a majority of the informal sector unchecked and untaxed.
“There are 15 million people who can pay tax in the country, but only 1.5 million people are paying taxes…” Dr Ngowi said, adding that the system has a lot of loopholes that allow tax evasion.
Action Aid Resident Director, Aida Kianga highlighted the need for more discussions to table new tax collection methodology to expand the scope and in turn increase government revenue and allow for more community service programmes and other forms of government expenditure to provide better social services and jobs.
SOURCE: THE GUARDIAN
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