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ITA vows to increase efficiency in tax collections

ITA vows to increase efficiency in tax collections

THE Institute of Tax Administration (ITA) has vowed to continue being creative in order to produce qualified professionals, who will help reduce loss of trillion of shillings as uncollected tax.

ITA Rector,  Professor  Isaya Jairo said in an interview with the ‘Daily News’  that  a lot of  funds are being lost  through uncollected tax,  which is partly contributed by lack of creativity  by tax collectors.

"This institute has provided short courses to over 300 officers from Tanzania Revenue Authority (TRA) with different tax methods and creativity so they can increase collections. We also offer long term courses in the areas of tax administration and customs," he said.

Prof Jairo highlighted some areas which need modern skills and techniques as digital economy, where online transactions are almost left untaxed. Other areas are the challenging informal sector, gas, mining and oil sectors among many others.

"It is ITA's duty to train TRA officials and equip them with knowledge on how to increase efficiency in tax collection for the government to earn revenues meant to deliver social services," he said.

Speaking to the ‘Daily News’ recently, a researcher and tax advisor from Action Aid Tanzania, Dr Balozi Morwa, said it has been found that the government has been losing more than 6.5tr/- as uncollected taxes every year from 2013 to this year mostly from the informal sector.

“Tanzania's informal sector comprises many economic activities and employs a bigger number of people, who are the country's major workforce. Lack of a mechanism of taxing this sector has caused the government to lose these large amounts of revenues. These revenues would have been channeled to solve challenges facing the education sector," said Dr Morwa

"Being informal does not necessarily mean that businesses are making loss, some of the businesses in this docket are making lucrative deal, all needed is coming up with best ways of collecting taxes,” he added.

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Author: JAMES KAMALA

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