Norway issues Sh25 billion for Tanzania’s tax reforms

The deputy minister of Finance and Economic Planning, Dr Ashatu Kijaji.

What you need to know:

  • The Visiting Norwegian minister who is in the country for three days has promised to cement bilateral relations with Tanzania with initial support of Sh25 billion for tax reforms programmes.

Dar es Salaam. Norway has pledged to give the government Sh25 billion for improving capacity of the Tanzania Revenue Authority (TRA) to collect more revenues from domestic sources.

Speaking on Tuesday after the official launch of the ceremony for Tanzanians who were trained in Norway, the visiting Norwegian minister of International Development, Mr Nikolai Astrup, said such programme was agreed during their meeting with the deputy minister of Finance and Economic Planning, Dr Ashatu Kijaji.

“I also held a meeting with Tanzania Tax Revenue Authority who requested Norway to support the ongoing programme of tax reforms,” said the Norwegian minister who is in the country on a three-day visit.

“This is my first trip to Tanzania as minister of International Development. Earlier today, I had the honour of meeting his Excellency President Magufuli,” he said.

According to Norwegian minister, during their talks with President John Magufuli they agreed to strengthening bilateral co-operation in the areas of building the capacity of private sector, ongoing climate change support, supporting training programmes for Tanzanians, support the country’s energy projects, petroleum and natural gas  development and other development projects.

Earlier, the deputy finance minister said the government had increased tax collection volumes from the monthly collections of Sh800 billion in 2015 to Sh1.4 trillion now, but more efforts were called for.

Norway has been supporting the country through Global Fund, especially the climate change projects. According to the latest report of Global Fund the annual contribution of Norway to such global facility for mitigating climate change amounts to $66 million and the country has already received $56 million support from such facility.

At the same occasion, those present included Dr Kijaji, the Speaker of the National Assembly Job Ndugai, deputy minister for Health, Community Development, Elderly and Children, Dr Faustine Ndugulile and the deputy minister for Industry, Trade and Investment, Ms Stella Manyanya.

The Norwegian ambassador to Tanzania, Ms Elisabeth Jacobsen, said at the occasion that the visit of Norwegian minister was set to cement relations with Tanzania through the established Norway-Tanzania Alumni known as Al-Ta-Tano.

There were more than 300 Tanzanians trained in Norway who attended the Al-Ta-No ceremony held at the residence of Norwegian ambassador on Tuesday night.

The Speaker, Mr Ndugai, was one of such Alumni who studied in Norway in 1994 before joining active political affairs.

The Al-Ta-No network was established in late 2017. The aim is to strengthen and maintain the ties between Norway and Tanzania. Its members are Tanzanians who have studied or worked in Norway and the Norwegian community in Tanzania.