EDITORIAL: IT’S TIME TO Walk the talk on investor confidence

When Prime Minister Kassim Majaliwa visited the Lake Cement Limited factory in Kigamboni Municipality in Dar es Salaam on Saturday, he took the opportunity to once again reassure investors of government cooperation. He said as part of plans by the fifth phase administration to creating a conducive environment for investors, roads would be constructed to help ease of access to factories, and ensure the smooth transportation of finished goods and raw materials.

Mr Majaliwa’s words are encouraging, especially as they come against the backdrop of the aggressive tax evasion crackdown that some investors have said borders on ‘witch-hunt’. The crackdown, which was extended to include reviewing of some “bad” contracts entered between the government and various businesses, has, apparently, heightened fears among investors.

And recent public statements from some top leaders who have been demonising foreign investors have also somehow unnerved business.

These statements, which were followed by some legislative measures that point to a shift in the manner in which government does businesses with investors, have led to what experts from various quarters have described as a worrying trend of “policy unpredictability.”

It is, therefore, our view that more should be done beyond rhetoric to reassure investors. The crackdown on tax evasion is crucial, and should be consistent to ensure everyone meets their obligation. But it should be done professionally.

Tax payers who obey the law should be treated fairly. Tax disputes should be forwarded to the tax tribunal for deliberation. It is at this point that we also urge the government to increase the capacity of tax tribunals for efficient and quick dispensation of justice.

Policy changes should also be as consultative as possible. There is nothing wrong with changing or amending legislation, but when the rationale is well explained to the private sector, and their input is sought, it goes a long way towards reassuring them.