Tanzania’s Heavy Taxing Restricting Economic Growth

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 13-Jun-2018

The issue of tax collection has been identified as a massive bummer for businesses in Tanzania. This has had a wider implication in the economy of Tanzania. Former chairman of the Business Community Association Johnson Minja urged the Government of Tanzania to check into the matter, should the economy of the country move forward.

Based on his argument, registered businesses in the country seemed to be burden with tax payment to uphold the economy of the nation. There has been a lot of stress on the start ups as the Government suck up a significant amount of money from them. Mr. Minja has asked the Parliament to widen the tax base to prevent this mode of harassing of businesses that could discourage the businesses and lead to their closure.

The need for a wider tax base would be ideal in promoting the growth of businesses and progress of the economy, with a high potential of heaping taxes from different avenues. Tax collection has been a sensitive matter that has seen businesses seek ways to evade the responsibility and fallen into the wrong hands of the authority. In other cases, traders have lamented on the same, threatening to seek greener pastures.

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He has highlighted the need for the Government to create more space for investors who could potentially steer the country into the middle income status they eye for. President John Magufuli has been a pioneering figure in welcoming foreign investors in the country through his leadership and tantalizing policies to offer a favorable business climate for investors.

There need to be consistency in policies making to sync with the dynamism of the business environment, which comes with a number of benefits. Policy unpredictability could scare off investors as they want assurance of their long term investments in the country.

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