EDITORIAL: BUDGET SHOULD SERVE INTERESTS OF THE PEOPLE
The 2021/22 national Budget has received mixed reviews from different people across diverse sectors. One thing that remains pivotal as Tanzania tries to scale economic growth, is the need for inclusivity in this journey to a developed nation.
In its entirety, the National Budget aims to steer the country to prosperity in terms of overall development in different areas of national interest. However, as the government tries to achieve this strategic goal, it shouldn’t escape their tactical lens that it is the citizens who are the backbone to any level of foreseeable success.
What this means, is that the National Budget should be planned in such a way that the burden of taxes does not heavily weigh on the common mwananchi. Is this the case in the current budget? The answer is yes, and no.
Elaborating this assertion, or in better context; vacuum: the 2021/22 National Budget has many visible relief factors that tout progress for Tanzanians, but, there are also overt tax encumbrances that will inevitably be counterproductive in the government’s plan for overall national development.
As it has been, on numerous occasions highlighted by former Member of Parliament Mr Zitto Kabwe, fuel and telecom levies proposed by the government are some of the red flags in the new budget. According to the politician, these levies should be ring-fenced in efforts to ensure that the money collected is used for special purposes, otherwise, he suggests that the proposed taxes be dropped altogether.
In a rejoinder to Mr Kabwe’s sentiments on the telecom levies, CEO of Vodacom, Mr Hisham Hendi opined that the levy will be a big burden to telecom customers, who will bear the brunt of paying the proposed tax. According to him, the economic status of a majority of Tanzanians remains unstable, as such, introducing the new levies is not the right move.
Diverse views
On the flip side, some members of the business community have praised the proposed National Budget, with some saying that it is progressive and inclusive. For example, Chairman of CEO Roundtable Mr Sanjay Rughani has shared his view on the national debate by saying that the budget will foster the realization of the five-year development goals. According to the financial expert who also serves as the CEO of Standard Chartered Bank, the budget will drive medium to long term sustainability and will also create a conducive atmosphere for businesses, thereby helping the private sector to participate in national development efforts.
But, one this the should be considered as these opinions and analyses continue to come forth in the wake of the new budget is the fact that Tanzania is still a developing country, and hence it needs to ensure that any plans for growth are centred on its people. It is the people who will push for progress, hence they need to be given a reason to cooperate with the government; heavy taxes will not get the job done.
In as much as the National Budget for the fiscal year 2021/22 continues to be dissected by different experts, the diverse views remain relevant as the government formulates a mode of operation on the national scale that will be beneficial to each and every Tanzanian.
