AfricaPress-Tanzania: MEMBERS of the Parliament have called on the government to harmonize the modalities for tax collection to protect available businesses and attract new ones so that the country could sustainably implement its development plans.
They have also called on timely implementation and completion of the ongoing strategic projects and those which have been highlighted in the 2021/22-2025/26 national development plan, to ensure that all targets are realised.
The lawmakers made the remarks when contributing to the government’s third five year national development plan slated for 2021/22 to 2025/26 and priorities set in the proposals for the roadmap plans for the year 2021/2022.
They are of the view that, since the implementation of the projects needs money, it’s okay for the government to continue collecting tax but it’s better for the taxman, Tanzania Revenue Authority (TRA) to put a conducive environment for taxpayers, especially, reviewing the approaches used in revenue collections.
Geita Rural MP Joseph Musukuma (CCM) opened the debate, telling the House that some businessmen were closing their shops due to the unfavorable approach by the TRA in collecting taxes.
For business to prosper, Mr Musukuma urged the government to be attentive and address challenges facing the business community, instead of rushing to penalise or close businesses whenever there is a delay on tax payment.
“If the government will continue this way, without taking into account advice from laymen on the ground, then chances are high for more businesses to be closed, as a result the government will end up losing revenue and expand the scope of unemployment,” he said.
He suggested the necessity of President John Magufuli meeting with businessmen for them to speak out about the challenges they are facing and suggest the way forward, same to the approach that was used on improving the mining sector.
His views were seconded by Mtama MP, Nape Nnauye (CCM), who argued that tax collection should be left to TRA instead of using task forces that according to him, in most of the time are abusing the power they are given.
He said instead of applying a smooth approach in collecting tax, the taskforce has been using unnecessary force, a move that ends up harassing and frustrating businessmen.
“The job should be done by TRA officials as they are specialists on that, they were trained for the job, let them do it instead of coming up with task forces, that will kill businesses,” he said.
He was of the view that the use of task forces in tax collection brings short-term joy, but in the long run, it’s a trouble for the future of businessmen and government itself as it will lose the collections after closure of the businesses.
“The number of businesses being closed is too much, the government should stop using task force since they aren’t skilled for the job,” noted the Mtama MP.
The views were seconded by Mafinga Town legislator Cosato Chumi (CCM), who said the taxman should find a better way of collecting tax instead of harassing businessmen by closing their bank account, a move that led to closure of businesses.
He also spoke of the need for continued efforts on providing a conducive environment for businessmen to pay their taxes instead of being harassed and embarrassed.
“There must be a good environment for businessmen to fulfill their legal obligation of paying tax, the authority should stop the tendency of closing bank accounts of businessmen who have huge amounts of money, because that leads to closure of business and expands the scope of unemployment,” he noted.
For their part, Vunjo MP on CCM ticket Dr Charles Kimei and a Special Seats MP Jesca Kishoa (Chadema) said despite an increase in figure of amount being collected by TRA, still the country is collecting less.
They said the annual collections are equal to 13 per cent of the Gross Domestic Product (GDP) and that there is a need for the government to fix the loopholes that deny the government’s actual collections.
“With these collections I’m sure there is something missing, the government has to work on it to ensure the relevant tax is obtained,” said Dr Kimei.
For his part, Presidential nominated MP Humphrey Polepole suggested that all strategic projects should be completed before 2025.
“Let’s have all the projects on the electricity sector implemented during President John Magufuli term in office,” he urged.
His points were in line with what was said by Butiama MP Jumanne Sagini (CCM), who called for a harmonised process that would cut bureaucracy in implementing the plans for quick development.
