Crackdowns on tax evasion win kudos

The Director of Policy and Research, Confederation of Tanzania Industries (CTI), Mr Hussein Kamote

TAX administration improvement measures taken by the government have widely won approval by some economists and other citizens who expressed hope for a new Tanzania.

Hardly a day after exposure of massive cheating by the Tanzania Revenue Authority (TRA) at the Dar es Salaam port following a surprise visit by the premier, Mr Majaliwa Kassim Majaliwa, interviewed financial experts have described the move as “timely and the right path towards self-sufficiency.”

The Director of Policy and Research, Confederation of Tanzania Industries (CTI), Mr Hussein Kamote, said tax evasion remained a long-time unresolved challenge despite voices by concerned parties.

“We (CTI) wrote and produced reports on massive cheating and losses of government revenue in trillions. We made it clear that re-establishment of local industries would have been a complicated process unless serious measures were taken to control importation of volumes of untaxed goods. “The government has now taken a commendable step to lift the country from a gridlock,” Mr Kamote commented.“Devastating silence previously maintained by concerned authorities on smuggling of goods, underdeclaration of imports, tax evasion, importation of substandard goods and the like dented the country’s economic strength undermining efforts to build own industries.

Let the government sustain the pace,” Mr Kamote insisted. Prof Honest Ngowi, an economist from Mzumbe University said the focus by the government on proper revenue collection would lead to numerous avenues of economic prosperity.

“The resolve to recover evaded tax at a tune of 80bn/- at the port of Dar es Salaam as instructed by the Prime Minister, Mr Majaliwa will definitely send a clear message to all tax payers fearing similar adversity,” Prof Ngowi explained.

Commenting on voluntary tax compliance, Prof Ngowi said new strength on customs administration would ‘bring’ money to the government coffers for smooth implementation of development projects.

The discipline must be sustained all the way to local government authorities to make sure that the entire nation benefits from the available resources. It is inconceivable that hardly 15 per cent of payable tax reaches the government coffers,” he explained.

Dr David Senkoro, an economist from the University of Dar es Salaam (UDSM), expressed approval for serious strike on habitual tax evaders who not only impoverished the nation but also pushed it to what he termed “a begging edge status.”

“The willpower to collect revenue will earn credibility to the country. Even development partners will build trust or confidence on our government seeing that decisive measures are taken on revenue collection away from permanent dependence on foreign budget support,” Dr Senkoro observed.

Premier Majaliwa made a surprise visit to the port of Dar es Salaam and discovered massive cheating that led to interdiction of TRA chief, Mr Rished Bade and several other top officials.

From Zanzibar, Issa Yussuf reports that the ‘clean up’ campaign by President John Magufuli won praise among interviewed politicians across the ideological divide, civil servants and traders.

Mr Juma Ali Khatib - deputy National Chairman of ADA-TADEA party called for massive support to Dr Magufuli in fighting corruption and tax evasion, the malady that paralysed the nation for so long.

“Restructuring of TRA is now a commendable initiative and all Tanzanians should join hands to support the government and other leaders,” Mr Khatib remarked.

CHAUMA party Zanzibar presidential candidate in the nullified polls, Mr Mohammed Rashid, also praised Magufuli’s administration for taking action, saying “ending corruption and improving financial discipline means a lot for Tanzanians including better health care and good salaries for workers.”

Mr Jamal Hashim, Chama Cha Mapinduzi (CCM) party member and trader, said here that all members and leaders from CCM are for changes, “Dr Magufuli and his team are correctly leading the way to improve life for Tanzanians.

“I know Dr Ali Mohamed Shein will also take similar measures, he is being delayed by the disputes following the annulment of the elections,” Mr Hashim explained. From Mwanza, Nashon Kennedy reports that the city residents have praised the decision by President Magufuli to curtail tax evasion and urged clerics to conduct a ‘Special prayer’ for him.

Mr Kasim Shaban, a resident of Igoma described Dr Magufuli as a hero not fearing to take decisive action against embezzlement of public funds. “If we would have the president of this type who works day and night, our money would have been worthwhile, my opinion to clerics is to pray for him because of a tough job facing him,” he said.

Idd Salum said even if the president does not bring to us 50m/- he promised during the campaign to every village, measures taken recently to control misuse of funds in the government are quite satisfactory.

ADC Lake Zone Commissioner, Mr Itutu Shaban, said the speed of the operation that started by his excellency should be emulated by other government officials in the country.

/Daily News.