JPM:Taxation must not be burdensome

PRESIDENT John Magufuli has tongue-lashed the Tanzania Revenue Authority (TRA) for pursuing aggressive strategies that push taxpayers beyond the boundaries of acceptable tax collections saying paying taxes should be an honourable obligation rather than a burden.

He directed Minister in charge of Finance and Planning as well as the Permanent Secretary in the Ministry to help seek an end to the challenges facing TRA and help improve relationships with taxpayers.

Expressing deep concern over the way TRA was fixing tax rates, the Head of State wanted everyone to pay fair taxes. He cited an example whereby TRA were charging property owners up to 900,000/- as property tax while the government had directed the authority to fix flat rates for all owners. “I have been informed how the authority is harassing people paying property tax.

The government harmonised the system allowing a rational amount to be paid as property tax. Unfortunately, taxpayers are still being mistreated,” he remarked. The state authorised payment of 50,000/- as annual property tax on two storey residential buildings. It also scrapped such payments in respect of senior citizens and adopted10,000/- flat rate for ordinary houses in urban centres.

“While some houses were charged as much as 200,000/- for a standard modern house, lucky ones paid 10,000/-, thereby creating unstructured divisions within the community” explained Dr Magufuli. Speaking shortly before laying a foundation stone for the construction of a 426-km standard gauge railway line from Morogoro to Makutupora in Dodoma here yesterday, President Magufuli also expressed concern over the unethical conduct of some of TRA staff.

“There are people in the authority who are not good. They are ready to destroy the good deeds of the authority and the country,” pointed out, adding: “All people should pay tax.

TRA should revisit their taxation procedures to ensure the agreed tax does not appear to be a disturbance to the people,” he stressed. According to the President, receiving a receipt with a lowest price tag and giving out such a receipt represented a loss to the government.

He pointed out, for instance, that the government now needs 15trn/- to construct the standard gauge railway from Dar es Salaam to Mwanza. In addition, 6trn/- was needed to implement the Rufiji Hydro-power project to generate at least 2100 MW to power the industrial economy as well as the country’s first ever speed train.

He further explained that the government was similarly implementing a strategic plan involving the expansion and rehabilitation of eleven airports and Dar es Salaam, Tanga and Mtwara ports. “We want to improve access to water across rural and urban areas. We also want to address the problem of power blues connecting all villages come 2021 … but we need money,” he said.

President Magufuli made it clear that the 55 million population was not a problem in Tanzania, referring China that has over a billion people but was highly advanced.

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