Editorial The role of revenue authority in fostering economic growth

By Editor

 Taxation is a long practice since the establishment of governments all over the world.

For every government to run its administrative work efficiently needs finance that is usually generated from citizens in the form of tax and non tax income.

Nowadays because of the multifaceted value of tax paying, tax has become a mark of responsible citizenship. However, as the government's expenditure increases from time to time for the enhancement of development the tax base must be broaden. 

In addition to that, other domestic financial sources should be channeled to the government's treasury.

Therefore, the growing of the culture of paying tax  for every Tanzanian is of paramount  importance. In sub- Saharan African countries the income generated from tax is about 18 per cent of their Growth Domestic Product.

In our country even in the first Growth and Transformation Plan (GTP), it was planned to collect tax 17.8 per cent of the nation GDP nevertheless, not succeeded. Still the percentage is 15 per cent of the GDP hence it is understood that, there is more money that is to be collected in the form of tax and non tax sources.

In the second phase of the GTP the government planned to cover 80 per cent of its expenditure from domestic financial resources.

As the economy grows, the government expenditure increases as well and to cover the cost more revenue is needed.

The other thing that create havoc on tax collection is proper usage of receipt. Particularly importers failed to carry out their duty in this regard; other service providing firms also can be mentioned here. 

In the country with a high need of development both by government and public, revenue is vital for healthy economic growth hence the taxpayers must fulfill their duty. 

But if some evade tax not only the government lose money but also endanger the functionality of the economy. 

As it is known trade is one of the major sources of revenue, both imported and exported goods should be taxed and fulfill the custom clearance;

 however, as the boarders are not properly monitored with the neighbouring countries, illegal  incoming and outgoing goods are pervasive, this put the nation in disadvantageous position and as a result, the nation lose huge amount of wealth.

Many illegal traders could be traced and be caught. And the necessary measures could be taken,with that, the nation wealth could be saved from out flowing.

The case of the government in court, the authority properly delivered its responsibility and till now it won 80 percent of the case in the court.

Some customers wrongly complain regarding the authority only for the sake of their personal ill gain. Currently, because of economic growth in the country the volume of trade particularly in import and export is increasing and this situation makes the authority busy; but with considerable effort the service is provided to meet the needs of the customers. In addition, considering the international business character it made its own effort for capacity building. According to Epherem, the authority based on its mandate put sophisticated equipment at check point and the goods are scrutinized in an ex-ray type machine and only the permitted items pass through and items will be detained.