Africa-Press – Tanzania. PREPARATIONS for the new 2021/22 government budget have begun with the State inviting stakeholders to take part as a taskforce on tax reforms.
THE ministry of Finance and Planning extended the invitation to stakeholders yesterday asking them further to constitute the taskforce that will provide a structured forum for discussion on various issues related to tax policy and administration.
According to the statement, the invitees will be officials from the government, private sector, civil society, religious organisations, academia, research institu tions and other specialists in public finance.
The announcement issued by the Ministry’s Permanent Secretary, Mr Doto James yesterday equally, asked stakeholders willing to take part in the discussion to submit their applications by February 10th this year.
Mr James noted that such taskforces have always constituted a vital input to policy makers for a long time, adding that they help in shaping the country’s tax collection and management.
“The task force secretariat will once again arrange a schedule of meetings with stakeholders for presentation and discussion in this financial year…through dialogue and analysis, the work has facilitated an effectiveness, transparency and number of issues,” read part of the statement.
Expounding, the PS assured that the government will take lead by giving an update on its policy objectives, agenda and challenges as well as an assessment of tax policy priorities for context for this year’s proceedings, while motivating analysis and discussion on impacts of various proposals in depth.
Equally, he was of the view that the fiscal policy measures are aimed at improving the business environment in order to attract investments and facilitate growth of small and medium business for sustainable economic growth.
Elaborating, he noted that it is also aimed at enhancing voluntary tax compliance, broadening the tax base, mainstreaming the use of Information Communication Technology (ICT) systems in tax administration.
“The measures also strengthen enforcement of tax laws in order to address tax evasion challenges and minimise revenue leakages; and streamlining levies and fees in order to improve business and investment environment,” it further presented.
At length, the PS pointed out that interested parties in their submissions, among others, should state clearly their proposed changes in tax or non-tax revenue, including analysis of the sectors, region or type (s) of taxpayers that would be affected.
The submissions should also carry the projected impact on the economy and government revenues in the year of implementation and outer years.
Another item should be the rationale and justification for the proposed revenue policy changes and, in particular, analyses of the means by which the proposal will help the government to achieve its overarching economic, fiscal and poverty–reduction objectives.
“And, where proposals entail a reduction in government revenues (even in the short term only), there must be alternative proposals which set out explicit and credible measures consistent with the overall thrust of the shortfall,” noted Mr James in the advert.
