TANZANIA REVENUE AUTHORITY TRA 1 TAX ADMINISTRATION REFORMS TO IMPROVE REVENUE COLLECTIONS AND WIDEN THE TAX BASE Mary N. Maganga Director for Planning.

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Presentation transcript:

TANZANIA REVENUE AUTHORITY TRA 1 TAX ADMINISTRATION REFORMS TO IMPROVE REVENUE COLLECTIONS AND WIDEN THE TAX BASE Mary N. Maganga Director for Planning & Modernisation Tanzania Revenue Authority

TANZANIA REVENUE AUTHORITY TRA.  United Republic of Tanzania (Tanzania Mainland and Zanzibar)  Population – 45 million The tax administration is of a three tier: a)Tanzania Revenue Authority administers Central Government taxes b)Zanzibar Revenue Board administers domestic consumption taxes in ZNZ c)Local Authorities administer various local imposts 2

TANZANIA REVENUE AUTHORITY TRA.  One of the functions of TRA is to advise the Government on Tax Policy  Reforms in tax administration are guided by the following best practice elements of an effective tax administration: a)Tax Administration Law b)Organization Structure c)Planning and Management d)Human Resources e)Work Processes f)Technology Support 3

TANZANIA REVENUE AUTHORITY TRA. Tax compliance depends on three main components: a) Fair and competent Tax Administration b) Taxpayer Service c) Enforcement These depend on the risk profiling of taxpayers Compliant Taxpayers Partially Compliant Taxpayers Non-Compliant Taxpayers 4

TANZANIA REVENUE AUTHORITY TRA..  Tax administrations (TAs) in most of SSA have moved from policies of one size fits all to identifying their specific policy needs  TAs in SSA share experiences & compare with peers of similar environment ( EAC; ATAF; SADC)  TAs borrow best practices from developed countries on specific issues e.g.international taxation, audit of specialised sectors  Tanzania is in partnership with TAs in developed countries in assisting specific compliance issues which has made a great impact in increasing revenue and capacity building 5

TANZANIA REVENUE AUTHORITY TRA  Focus for TRA now is on balancing compliance and convenience  Research requested is for looking at overall compliance issues at macro level:  Estimation of revenue potential  Estimation of the tax gap  By economic sectors; by tax typeses; estimation of revenue potential  Recommendations will feed into both policy and administration strategies Thanks 6 Way forward with IGC