Lack of guidelines delays property tax collection

PIUS RUGONZIBWA in Mwanza

Mwanza Regional Commissioner John Mongela

THE delay in the release of new regulations on property tax collection may impede Tanzania Revenue Authority’s preparations to undertake the exercise.

The government decided that beginning this financial year, collection of property tax collection will be undertaken by TRA instead of the Local Government Authorities.
This is according to a briefing given to Mwanza Regional Commissioner (RC) John Mongela who made a familiarisation tour at the TRA regional office on Wednesday. Mongela said TRA start collecting property tax as per government directives.
“We are all aware of the government push in ensuring internal revenue is collected, including property tax previously collected by the municipal and town councils,” he said. He said his office will immediately communicate with TRA headquarters on the delay as there is no official statement.
Senior workers in the Tax Payers Education Unit said that lack of regulations was one of the reasons behind the delay in the collection of property tax. Ms Amida Ngaiza said a clarification should be sought on how to deal with clients with inquiries about where they should pay property taxes.
Earlier, TRA Regional Manager Ernest Dundee briefed Mongela on preparations towards collection of property tax. “We have started crucial preparations ahead of starting collecting property tax and are now transferring data as well as studying the collection trend and related challenges,” he said.
It was revealed that local government authorities with available data are the Mwanza City Council, Ilemela Municipal Council and Sengerema Town Council while the remaining lack reliable data which can be transferred to TRA. Mongela cautioned TRA on the possibility of “sabotage” acts as it embarks on the exercise.
He said dishonest officials may not cooperate in releasing required data and documents to TRA.