TRA to review personal, corporate taxes

Mr Kitilya
The government is contemplating evaluation and design of administrative issues related to individual and corporate taxes to achieve equity, economic efficiency, revenue growth and adequacy as well as stability and administrative simplicity.

Tanzania Revenue Authority (TRA) Commissioner General Harry Kitilya said in a statement in Dar es Salaam that, Tanzania was within the performance benchmark of most the low income countries.

“Admittedly, Personal Income Tax (PIT) is the most difficult to administer due to high degree of informality in the country,” Mr Kitilya said, noting that although it exhibits high potentials for revenue growth, the Corporate Income Tax (CIT) poses big design and administrative challenges.

The multinationals that operate in Tanzania’s telecommunications, financial, mining and gas sectors come along with demand for tax planning, transfer pricing as well as avoidance and evasion schemes. 

“All these have to be evaluated to boost the country’s revenues,” said Mr Kitilya.

TRA has invited interested eligible and competent consultants to offer technical assistance on the assessment of PIT and CIT structures. 

According to the government revenue collection agency, the consultant shall execute the assignment in relation to the existing tax structure for the period of 2003/2004-2012/2013.

“He/she should evaluate the level and adequacy of the exemptions regime contained in the income tax structure in Tanzania,” Mr Kitilya explained.

The consultant will also review the existing human resource capacities in collecting income tax and assess the dynamics behind the relative low revenue yield from PIT and CIT in Tanzania as compared with other Sub-Saharan Africa.

The study by the consultant will evaluate the current PIT and CIT design issues including their structure. 

“Finally, the consultant will prepare a comprehensive report including a summary of findings and recommendations on the current structure for improved equity, fairness and revenue productivity of the PIT and CIT in the country,” Mr Kitilya said. 

TRA is responsible for assessment, collection and accounting for the central government tax revenues.
Source: The Daily News, reported from Dar es Salaam
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