As for new sources of revenue, legislators have a point

By Editor

Editorial Cartoon

Yesterday, a section of the media reported about the brewing tension between members of Parliament and the government over the Finance Bill that was earlier planned to be tabled on Thursday morning before it was finally tabled yesterday evening.

The tension, according to press reports, resulted from the failure by the government to take affirmative action to bridge the budget deficit gap, blaming the government of over-reliance on traditional sources of revenue.
The reports went further to suggest that legislators were angered after the government refused to accommodate new sources of revenue suggested by the budgetary committee headed by Andrew Chenge.


Such differences caused the House to temporarily adjourn on Thursday to create room for the two sides to find common ground. It should be borne in mind that the Finance Bill is an important legislation as it blesses the Budget already approved, providing its regulatory framework, thus kick-starting its implementation.

Much as it may be argued, the essence of the matter here is not the differences that emerged over the Bill, but rather it is what every Tanzanian who wishes this nation good should ask. Why does this government year in year out come with same sources of revenue? Have our leaders reached the end of their thinking capacity?

Every year when the government tables its budget in Dodoma, alcoholic and soft drink consumers, motorists and cigarette smokers pay some high price, leaving other areas largely unexploited.

Last week The Guardian on Sunday reported that the government could earn around Sh350billion into its coffers annually from deep sea fishing, an area that is completely neglected.

But in April last year Kisesa MP Luhaga Mpina made it clear that the government was losing billions from various sources. Giving examples, the legislator said studies by a number of institutions within and outside the country had demonstrated that Tanzania was losing a whopping Sh525 billion in revenue through tax evasion in the mining sector alone.

Within the telecommunications industry, he said the government was losing some Sh600 billion through tax evasions as well, while informal sector data showed the government was losing Sh1.3 trillion annually. Despite such reports being availed to the government no deliberate measures have been taken to establish their authenticity.

A year ago Parliament formed a new committee, the Budgetary Committee, to, among other things, advise the government on how to expand the taxation base by finding new sources of revenue and track down government expenditure.

But to the contrary of these expectations, Chenge has been heard complaining that the government turned a deaf ear to their advice, something that indeed shows there is something wrong with good governance in that sphere. Unless government officials at the most senior levels become creative enough, this trend will not stop and in this case members of Parliament have a point to differ with the executive.

In that case the passing of the Budget for the next financial year notwithstanding, as well as approval of its regulatory framework through the Finance Bill, work remains to be done to take into account what MPs have worked hard to establish.

Differences of opinion notwithstanding, and despite varying and even conflicting sources of data, what is held dearly by a significant section of Parliament can’t just all be misguided. Far from it, as it is resistance to it that is likely to be actually misguided.

SOURCE: THE GUARDIAN