In an effort to simplify procedures and improve the business environment, the Tanzanian government is developing a centralized system for collecting taxes, levies and fees related to businesses.
This initiative aims to address the current tax system where businesses face multiple payments to different government institutions, including the Tanzania Revenue Authority (TRA) and local councils.
During a public-private sector dialogue in Mbeya, southwestern Tanzania, Minister of Industry and Trade Dr. Ashatu Kijaji announced that the new system would allow businesses to make a single consolidated payment covering all taxes, fees and levies. The funds collected would then be distributed to the relevant government institutions.
"We have already heard the complaints and the government continues with discussions to establish a single system for tax collection in one basket. Each institution will get its share and thus reduce the inconveniences," she assured the entrepreneurs.
Business representatives, including the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and the Tanzania Private Sector Foundation (TPSF), welcomed the move, according to local media.
They highlighted the confusion and conflict caused by the existing complex tax structure, particularly the introduction of new levies at the local level, which contradicts national efforts to improve the business environment.
According to representatives of the Tanzanian business community, the proposed single-basket tax collection system is expected to streamline procedures, reduce administrative burdens on businesses, and create a more conducive environment for economic growth, in contrast to the current system that has contributed to the failure of many businesses.