Nurture private sector confidence – Mpango

DAILY NEWS Reporters in Dodoma

MINISTER for Finance and Planning, Dr Phillip Mpango has said private sector confidence must be nurtured, but rules of the game must be followed by the government and the business community.

Winding up debate for his ministry’s budget estimates for the 2017/2018 financial year on Wednesday evening, the Minister noted that there were clear cases where some members of the business community did not follow ethics in doing business, by being involved in tax evasion and fraud.

He said the government and the private sector are like conjoined twins who must discuss policies and strategies for their mutual benefit, adding that is why doors were open for representatives of the community to discuss with the government through various platforms.

“It is vital that rules of the game are made clear. It is im portant that the tax regime is stable… on the other hand the business community must also play by the rules,” he said.

“Let me say, our leader has a genuine desire to ensure business confidence is nurtured, but we must speak out where we think there is a problem.” According to some Members of Parliament, private sector confidence is down as relationship between business community and government is becoming increasingly antagonistic.

Contributing to the debate of the 2017/2018 budget estimates for the Ministry of Finance and Planning, they said the situation has created dysfunctional relationship between the two, which will lead the economy to perform sub optimally as businesses will not grow and the government earnings through taxes will decline.

The lawmakers from both the ruling party and the opposition camp accused some Tanzania Revenue Authority (TRA) officers and government leaders of being bully against business community and using threats and intimidation.

“Traders are not enemies. The language of some of our leaders do not bode well, instead they build hatred and enmity,” said Khatibu Said Haji (Konde, CUF).

He said that despite his good intention, President John Magufuli seem to have no true picture of the reality on the ground as government leaders including ministers were wishing to please him, instead of telling him the truth.

He said what TRA was collecting were outstanding tax payments and as a result it would be gradually declining. He said, it was high time TRA officers sat down with the businesses and discussed what is not going on well.

“Let’s sit down with traders to see where we’re stuck and plan a way out… Other countries build cozy relations with tax payers. We build hostility,” he said.

Hussein Bashe (Nzega, CCM) said unpredictable tax regime was making it more difficult for businesses to operate, defeating the purpose of increasing taxes to boost government revenue.

He cited Tanzania Breweries Limited (TBL), one of largest taxpayers in Tanzania, saying the government collected fewer taxes in the current financial year after it increased levies.

He proposed the government and private sector to plan together on tax increase projections and every part to fulfil its responsibilities. Mr Bashe said businesses were closing and others were forced to cut their workforces due to difficulties which could have been avoided.

He cited Coca-Cola Kwanza, saying they plan to send home about 130 workers. Another lawmaker, Ali Saleh (Malindi, CUF) said business confidence had declined due frosty relationship between the government and the business community.

The shadow minister for Finance, Godbless Lema (Arusha Urban, Chadema), said on Monday that government was to blame for deteriorating business environment in the country due to bullying behaviour and unpredictable tax regime.

He referred to remarks by IMF Deputy Managing Director, Tao Zhang who said at a public lecture recently in Dar es Salaam that it was crucial to mobilise more private and public resources within Tanzania, especially by strengthening tax collection under a fair and predictable tax regime.

Mr Lema accused regional and district commissioners of threatening traders, saying they claim to be acting on directives from above. He said Tanzania Revenue Authority (TRA) officers were using Tanzania Intelligence Security Services (TISS) and Prevention and Combating of Corruption Bureau (PCCB) officers to threaten the businesspeople, which is counterproductive in efforts to boost tax revenue collection.

“Regional and district commissioners are threatening traders on orders from above… business people are scared, they have no confidence. “TRA officers are acting like police. They are escorted by TISS (Tanzania Intelligence Security Services) and PCCB (Prevention and Combatting of Corruption Bureau) officers.