THE Tanzania Private Sector Foundation (TPSF) has asked the government to establish long term fiscal policy that will be lasting for at least four years.
Addressing members of the media yesterday, TPSF Executive Director Mr Godfrey Simbeye (pictured) said they were of the view that upon establishment, the policy will also play part on minimizing complaints from business community on revenue collections.
He said long-term fiscal policy will enable the country to have a revenue policy that is sustainable and predictable hence complementing government’s efforts on smoothing business climate.
Mr Simbeye made the statement during the TPSF’s meeting that was convened to validate fiscal policy ahead government budget of the financial year 2019/20.
“We need policy that will be used as guidance for at least three or four years, enabling business community to predict the taxes to be paid for the given period instead of discussing the changes in every fiscal year,” he said.
According to him it was not easy for the government and business community to implement changes that are made in every year. Expounding further, the TPSF don reiterated the need for the government to cut down more taxes on agriculture sector that absorbs more than 75 per cent of the population in Tanzania.
“We understand that efforts had been taken to alleviate nuisance taxes but it isn’t enough, all we want is to see business men continue with their daily activities and government gets its revenues,” he noted, commending the reforms that were done recently on mining sector.
Mr Simbeye added that TPSF’s recommendations on fiscal policy for 2019/20 will be presented today to the government for further procedures ahead deadline that is set for 10th February.
Present at the event an economist from Association of Tanzania Employers (ATE) Mr Dan Tundas expressed optimism that the long term fiscal policy will attract more investors from within and outside the country.
“Traders will be able to prepare in advance the amount that they will be required to pay. With the current system it isn’t easy to predict the tax to be paid in the following year,” he said.
Meanwhile, TPFS is expecting to hold a three day meeting that will bring together all its members to evaluate performance of the foundation for all the time of its existence.
“The meeting will be held between 27th and 29th February this year, with the purpose to evaluate TPSF’s performance looking at challenges and all achievements that were recorded throughout, we have never had this platform before,” said Mr Simbeye.