Tax base expansion does not happen by itself; it is earned

By Thomas Akonaay David Maqway
The not-so-new song has surfaced again – tax base expansion. On my mind today is a long list of measures that need to be taken to expand the tax base. Tax base expansion is a result of creating an ideal environment for new businesses to prosper and existing ones to flourish. Tax base expansion is not an easy endeavour – it is earned, and it is give-and-take.
Tax base expansion base is a process, and not something that can be fully achieved overnight, or within a single financial year. It can’t possibly yield results within a short time to match the government’s needs to collect more and do more to satisfy political hunger zones. Tax base expansion is granting hope for the future and that business prospects will be certain.
Tax base expansion is creating a positive relationship between the tax collector and businesses. Tax base expansion is making tax payment easier. Tax base expansion is tapping untapped potential and opportunities.
Yes, tax base expansion happens when and where there is truth and trust on the part of the collector and businesses alike. Tax base expansion happens when new businesses are given breaks to break even, and that profit to tax is realised. Tax base expansion happens when the tax collector gets its head out of the thick clouds of business as usual attitude. Tax base expansion happens when money remains in the private sector’s stewardship to produce more. Tax base expansion happens when money changes hands, putting the wheels of the economy in motion.
Tax base expansion may not happen when there is an excessive shift of resources from production patterns to political spending patterns that stifle the private sector. Tax base expansion may not happen when there is no innovation on the side of the collector. Tax base expansion may not happen when existing tax laws are not harmonised with what are outwardly good intentions because the fact is that the tax collector enforces the law – nothing less than that.
With the existing tax laws, one should not expect changes on the modus operandi of the tax collector. To get it done, throwing out of the window not-so-good laws seems to be an option at hand. Tax base expansion may not happen if the tax collector does not care if businesses go under when tax is collected. It cannot happen when businesses are terrorised either.
No, tax base expansion may not happen if the tax collector doesn’t take into account the externalities affecting businesses. Tax base expansion may not happen if there are no deliberate efforts on the part of the government to support strategic sectors of the economy in which the country holds a competitive edge over other economies. Tax base expansion may not happen if the same old scripts are used to dance to new rhythms and expect different results.
In this regard, if one were to expect any difference, unpacking the pack is inevitable, and so is the courage to take a risk and brace for setbacks.
Tax base expansion may not happen if the government falls short in taking a cold, hard look at future prospects, and the need to promote private sector growth and prosperity. As for new businesses, incubation is key in tax base expansion. Tax base expansion may not happen if our education system is not overhauled.
Not much in terms of new taxpayers can be produced by our current education system which prepares them to be dependent instead of independent. In this regard, judging the main judgement is inevitable.
We need to go back to the drawing table to find out how to get out of the current vicious circle. Our education system must meet the needs of the markets in these fast changing economic times by making it the source of enterprise.
Lastly, tax base expansion may not happen if there is no transparency and accountability on how taxpayers’ money is spent. The government is duty-bound to ensure that public resources are expended prudently, and delivery of public goods is seen by taxpayers to give them reason to feel obliged to comply and pay taxes.

Thomas Akonaay David Maqway is a policy analyst based in Dar es Salaam, he can be reached [email protected]