Tanzania, Norway agree to cooperate on tax issues

By The guardian reporter

Norwegian Deputy Minister for Foreign Affairs, Ms Tone Skogen (right) addresses reporters (not in picture) during the meeting with Deputy Minister for Finance and Planning Dr. Ashatu Kijaji

 

Tanzania and Norway have agreed to start cooperating on tax-related issues following the launch of a tax modernisation programme to narrow the gap in tax collection by Tanzania Revenue Authority (TRA).

 

The programme worth over 10bn/-  was launched recently in Dar es Salaam  with the signing of an agreement between the Norwegian Deputy Minister for Foreign Affairs, Tone Skogen, and  Deputy Minister for Finance, Dr Ashatu Kijazi.

 

The Norwegian government will contribute USD5million to finance the fourth Corporate Plan in order to facilitate TRA initiatives in increasing national tax revenue and address the potential gaps in the existing system in the new government under President John Magufuli.

 

She added that just as important are the major anti-corruption efforts currently taken by the government, which may have long term impacts on citizens’ willingness to pay to state coffers.

 

The tax modernisation programme aims at first leading to the expansion of Tanzania tax net that would allow the burden to be more equally distributed. Secondly, to introduce convenient procedures and systems for the taxpayers so that companies can enjoy lower transaction costs in their interaction with the tax authority. 

 

“Tanzania can achieve its dream of having an independent national budget financed by the tax income collected within the country and do away with foreign aid. This new programmme will pave the way for such a situation,” noted Kijazi.

 

For her part, Norwegian deputy minister said the motivation behind Norwegian support to the programme was to assist Tanzania become a middle-income economy and graduate from dependence on aid. Furthermore, she said, she wanted to see Tanzania private sector developed through strengthening the business environment and promoting trade facilitation.

 

Tanzania and Norway collaboration and partnership has continued to blossom in financial skills expertise from October 2012 with the agreement between TRA and Norwegian Ministry of Foreign Affairs and later institutional corporation between TRA and Norwegian Tax Administration