Strategy to boost domestic revenue generation in place

DAILYNEWS Reporters in Dodoma

DOMESTIC revenue is set to increase in the next fiscal year as the government has already underlined various mechanisms to increase collections.

Deputy Minister of Finance and Planning, Dr Ashatu Kijaji, told the Parliament that several measures have been taken to increase domestic revenue, which includes controlling loopholes for tax evasion and ensuring everyone pays his/her dues.

“The government is also expanding and seeking new sources of revenues and putting in place a conducive and friendly environment for tax payers,” Dr Kijaji explained. She said these move will ensure development projects do not receive fund late because money will be available.

Dr Kijaji was responding to a basic question from Amina Nassor Makilagi (Special Seats – CCM), who wanted to know the government strategy in the next financial year 2016/17 in addressing the challenge of disbursing funds to development projects late.

Ms Makilagi’s question was asked on her behalf by Mr Stanslaus Mabula (Nyamagana – CCM). The deputy minister of finance and planning said the national budget has only two sources of funding; domestic revenue and donor funding, noting that disbursement depends on the actual availability of funds from the two sources.

“So with funds that are below the expected amount from the two sources will affect the distribution of funds for development projects and the only way for the government to address this shortcoming is to increase collection of domestic revenue,” she explained.

She added that the main objective of government’s measures taken so far is to increase domestic revenue and eventually get away from donor dependence which usually comes with conditions, some of which are not profitable to the nation.

“You Members of Parliament (MPs) know these steps taken by President John Magufuli and his government to control tax evasion and increasing revenue collection. We urge you to support these measures being taken by the government to ensure development projects get funds on time,” Dr Kijaji explained.

Responding to a supplementary question from Stanslaus Mabula (Nyamagana – CCM), who wanted to know when the funds will be released to complete projects that had been left for years due to lack of funds, Dr Kijaji said no project will be left behind, since the 5th phase government has increased domestic revenue collection.

“Since the government has put in place measures to control tax evasion, we all have noticed the increase in domestic revenue generation. The funds will be disbursed to projects that have not been completed,” she explained.