Mend your ways, Premier tells TRA

Dodoma. Tanzania remains the leading investment destination in East Africa, Prime Minister Kassim Majaliwa told the Parliament yesterday, noting however that the country’s revenue body was required to improve its relationship with businesses.

Quoting the World Investment Report of 2018 – which is published by the United Nations Conference on Trade and Development (UNCTAD) – Mr Majaliwa told the House that in 2017, Tanzania attracted investments worth $1.18 billion, ahead of $0.7 billion and $0.67 billion for Uganda and Kenya.

“Besides, until February 2019, the Tanzania Investment Centre (TIC) attracted 145 new projects worth $1.84 billion (about Sh4.2 trillion),” he said, presenting the 2018/19 budget review and the 2019/20 budget proposal for institutions under the Prime Minister’s Office.

Requesting the Parliament to endorse Sh148.886 billion for institutions under his office for the year 2019/20, Mr Majaliwa noted however that taxpayers were crying foul about TRA, saying it was using force and intimidation when it came to tax collection.

“Taxpayers have in their mind that TRA is an enemy to them hence affecting revenue collection. It is high time you improved your relationships, to attract more investors,” directed Mr Majaliwa.

Mr Majaliwa’s statement comes within two days since President John Magufuli criticised TRA for underperforming, saying the taxman has failed to collect revenue from a population of 55 million and instead the number of taxpayers was only 2.7 million.

“Sometimes businesspeople cross borders to open enterprises in neighbouring countries to avoid being harassed by TRA because you set unrealistic tax rates,” the President said 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.

According to Mr Majaliwa, so far, the country was on the right footing in as far as the attraction of investors is concerned.

“Following various measures that the government has been taking to convince investors consider Tanzania as the best destination for investment, several reports indicate that Tanzania stands at the top of the East African countries in attracting investors,” said the Premier. He said with the government’s massive investments in infrastructures, Tanzanians should grab the abundantly available opportunities by investing in production of products and services.

“In 2019/20 financial year, the government will continue to improve the business and investment environments, to increase their (investors) confidence,” said Mr Majaliwa.