President Magufuli criticises TRA for underperforming
President John Magufuli
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President John Magufuli said by having a narrow tax base, TRA had been overtaxing a few Tanzanians.
Dar es Salaam. President John Magufuli has criticised the Tanzania Revenue Authority (TRA) for underperforming.
He said TRA had failed to collect revenue from more than 55 million and instead the number of taxpayers was only 2.7 million.
He was speaking during the swearing-in of Mr Adolf Ndunguru as the new deputy permanent secretary in the Ministry of Finance and Planning and Mr Msafiri Mbibo as the new deputy commissioner general of TRA at the State House in Dar es Salaam yesterday.
The President said by having a narrow tax base, TRA had been overtaxing a few Tanzanians.
“Sometimes businesspeople cross borders to open enterprises in neighbouring countries to avoid being harassed by TRA as TRA sets unrealistic tax rates,” he said.
He directed TRA and the Ministry of Finance and Planning to widen the tax base.
He spoke about the importance of creating a friendly taxation regime to increase revenue collection.
He also deplored a backlog of tax cases at the High Court.
However, he praised Finance and Planning deputy minister Ashatu Kijaji for following up how funds disbursed for various projects are spent and taking appropriate measures when due.
He directed Mr Ndunguru and Mr Mbibo to cleanse the Augean stables, and remove officials deemed obstructive in the implementation of government plans.
In December last year, the President directed the TRA management to improve revenue collection.
He spoke about the importance of having realistic property tax rates.
He also issued 675,000 identity cards for small-scale traders.
Regional commissioners were to distribute the cards to petty traders. Each was to pay Sh20,000 to get it.
He spoke bitterly about corruption.
President Magufuli commended Mr Mbibo, then-TRA manager in Kilimanjaro Region for rejecting a bribery of $2,000.
He directed that Mr Mbibo be promoted.
In 2015, President Magufuli terminated the contract of then-TRA commissioner general Rished Bade, replacing him with Dr Philip Mpango. Later he appointed Mr Alphayo Kidata to succeed Dr Mpango.
The current TRA commissioner general is Mr Charles Kichere.
Those changes were aimed at strengthening TRA to improve revenue collection.
