Push for effective audit of extractive sub sector

Dodoma. Extractive sector stakeholders have called for the establishment of a system that will monitor and govern the collection of revenues in the sector.

This comes after revelations that the sector has not been generating adequate revenues and not contributing significantly to Tanzania’s economic growth and social development, despite the sector’s perceived profit increase.

During the 2015/16 fiscal year, on average, the government collected tax revenues to the tune of Sh1,176 billion from the sector, according to the available data.

“For Tanzania’s extractive revenues to benefit the poor, there has to be a comprehensive revenue collection system that will ensure proper collection of revenues in the sector per se,” said Ms Racheal Chagonja, coordinator of HakiRasilimali during an extractive sector conference held in Dodoma yesterday.

The conference was held in line with the commemoration of this year’s CSO Week that commenced on Monday and planned to end on Friday under the theme: ‘Progress Through Partnership’.

In his speech, Minerals deputy minister Stanslaus Nyongo argued that the establishment of the minerals markets in some regions has made it easier for the collection of the revenues, giving the example of Geita, whose gold revenues have increased from Sh2 million to Sh500 million per month.

Reached by The Citizen over the telephone on Wednesday, the Tanzania Revenue Authority’s Taxpayer Services and Education director, Richard Kayombo, urged stakeholders to submit their opinions to the relevant task force in the Finance and Planning ministry.

“We currently collect revenues in accordance with the laws passed by Parliament. So, I encourage them to submit their opinions to the Finance ministry by December or January so that their opinions can be discussed.

“Such opinions are normally considered during amendments,” said Mr Kayombo. The conference, which brought together participants from the Union and Isles’ government officials, private sector, development partners, religious leaders, academic institutions and CSOs, was graced by Minerals minister Medard Kalemani.

The stakeholders met to discuss and share experience and knowledge on issues related to the extractive sector (oil, gas and minerals) in Tanzania.