TRA told: Harmonise tax rates, cut levies

ITV tops in media sector tax compliance
The Tanzania Revenue Authority (TRA) has been advised to harmonize tax rates and reduce the number of levies charged by tax administrators, in a bid to enhance tax compliance among the business community.

Speaking at the Eighth Taxpayers’ Day activities yesterdat, the former Zanzibar Chief Minister, Shamsi Vuai Nahodha said that this goes in tandem with improving tax collection by taking into consideration specific recommendations by the business community for greater harmony to be cultivated with TRA.

 Several important recommendations have been given by the business community that will enable the harmonization to be done efficiently, he said, pointing at four key issues which were important for TRA to take into consideration.

These he said include the need to improve the tax collection system, to stop bureaucracy that complicated complaints and hinders many taxpayers to pay tax promptly, and improving service rendering via the internet.

Other issues that hinder compliance are high tax rates and presumed benefits of compliance, which is reflected in improved infrastructures such as roads, hospital services and schools, he said.

Despite various challenges in collecting taxes, administrators should also administer the law which pinches the taxpayers to do so, he said.

During the meeting, the deputy minister of finance Adam Malima said despite the success that TRA has managed to register, the authority still faces challenge especially in service delivery which he said hinders efforts to boost  the national income.

He said among issues that need to be tackled is Electronic Fiscal Devices (EFD) challenges, as this will ensure each taxpayer and general public is contributing directly or indirectly to government coffers on the basis of the business they conduct.

“Taxpayers and the general public play a superlative role in the process of contributing to the government by tax law so as to empower the government to provide social services,” he said.

He applauded companies shortlisted as most compliant taxpayers of the year where 234 firms and stakeholders were awarded with trophies, shields and certificates in recognition of their role in building the nation through payment of tax.

The TRA Commissioner General Rished Bade said that on the basis of efforts to improve tax collection the government plans to collect Sh11.9 trillion in revenue during financial year 2014/2015 , an increase of 21 percent compared with 2013/2014 collections.

“This target is set by focusing on the growth of the economy as TRA is in the second year of implementation of the five-year strategic plan which was established to simplify tax collection and introduce new sources of revenue,” he said.

  TRA is in a plan to increase revenue to GDP ratio to 19.9 percent by the year 2018 through the implementation of the fourth corporate plan, he declared.
“We are committed to creating a workable partnership with the private sector in revenue administration and your inputs towards achieving this commitment together are most welcome and valued,” he told the gathering.

For his part, TRA board chairman Bernard Mchomvu said that Taxpayers’ Day is a special day demonstrating the partnership between taxpayers as customers and tax administrators as service providers.

“It is a day which the authority recognizes, appreciates and reward taxpayers and other stakeholders for their contributions toward collections of government revenue,” he said.

He said that the process of selecting winners for the awards during Taxpayers’ day involves members of the TRA senior management.

“All selected winners for awards during the day must fulfill certain conditions in order to qualify for the award,” he explained.

During the event, Independent Television Limited (ITV), a service institution with the IPP Media Group featured among 17 award winners in the national compliant taxpayers by sector, as the winner in the media category.

ITV/Radio One managing director Joyce Mhavile said being among national compliant taxpayers suggests that despite being a media house involved in mobilizing people for tax compliance, it shows how the company is at the forefront in ensuring they walk the talk as to compliance.

 Apart from providing services as a media house, the broadcaster has been able to feature among the business community contributing the most in raising national income.

“We must keep in mind that our development will not be made by foreigners. We as Tanzanians can contribute directly to national income so that we can improve development level as a nation,” she said.