This document summarizes a discussion on taxation of Tanzania's informal sector. Key points include:
- Tanzania's informal sector makes up 40% of GDP but is difficult to tax due to its characteristics and lack of record keeping. This results in lost government revenue.
- Discussants debated strategies for improving informal sector tax collection like enhancing the tax authority's capacity, tracking new businesses, and improving tax administration.
- Improving perceptions of how tax revenue is used and increasing government accountability was seen as important for gaining voluntary tax compliance.
This document summarizes a report on taxing the informal sector in developing countries. It begins by defining the informal sector and discussing its size in African economies. There are benefits to taxing the informal sector such as increasing government revenue, encouraging economic growth, and strengthening accountability. However, efforts to tax the informal sector face challenges related to compliance. The report discusses common strategies used like indirect taxes, withholding taxes, and presumptive tax regimes. It argues more research is needed on incentives for compliance and how to shift incentives for taxpayers, politicians, and administrators. Some countries are experimenting with new approaches but more evidence is still needed on their outcomes and impacts on development.
Presentation by Sebsbie Fekade, Ansakech Lake and Ronald Waiswa at the second annual meeting of the Ethiopian Tax Research Network, which took place in Addis Ababa on 8th October 2018.
FACTORS AFFECTING TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES IN KITALE...paperpublications3
Abstract:This study seeks to establish factors affecting tax compliance by Small and Medium Enterprises, with special emphasis on Income Tax and Value Added Tax and their effects on government revenue. Tax compliance level which is internal factor affecting tax revenue not only undermines tax administration infrastructure but also makes the tax base narrow and inequitable. The objectives of the study include establishing the influence of compliance cost, fines and penalties and attitudes of tax compliance among Small and Medium Enterprises. The study adopts a descriptive research design involving both qualitative and quantitative research methodology. The target population was 200, out of which a sample size of 132 respondents were drawn, using stratified and simple random sampling. Questionnaires were used to collect primary data from the respondents, which were analyzed using SPSS applying both descriptive and inferential analysis. There was a positive relationship between the tax and compliance cost (r=.514), fines and penalties (r=.415) attitudes (r=.546) and tax compliance. The findings showed that compliance cost, fines and penalties and attitude had significant relationship with tax compliance. It is recommended that the tax system should provide a clear and simple guideline on how to fill tax returns but also enhance taxpayer education services to enable the taxpayers understand their rights and obligations as taxpayers, there should be moderate levels of fines and taxes so that SMEs are encouraged to comply since they will keep accurate records for taxation purposes in order to avoid fines and penalties.
Keywords: Direct tax, Indirect tax, Medium enterprise, Productive expenditure, tax evasion, tax impact.
Analysis of tax morale and tax compliance in nigeriaAlexander Decker
This document analyzes tax morale and tax compliance in Nigeria. It discusses how tax morale, or the intrinsic motivation to pay taxes, affects tax compliance. The study aims to determine the effect of tax morale on taxpayers' compliance with tax policies in Nigeria. It reviews literature on factors that influence tax compliance, such as trust in government, social and cultural norms, and confidence in the legal system. The document presents theories on intrinsic motivation, ipsative possibilities, and deterrence to explain tax morale and compliance. It provides context on Nigeria's tax system and history of taxation. The results of the study showed relationships between tax compliance and factors like tax morale, trust in government, and social/cultural norms. It recommends strengthening taxpayer services and
Determinants of tax compliance behavior in ethiopia the case of bahir dar cit...Alexander Decker
This document examines the determinants of tax compliance behavior in Ethiopia, specifically in Bahir Dar City. It used a survey of 201 taxpayers to analyze factors like perception of government spending, fairness of the tax system, penalties, financial constraints, policy changes, and social influences. The results found that these factors significantly affected tax compliance, but gender and audit probability did not. Additionally, older taxpayers were found to comply less if they felt the tax system was unfair or recent policy changes were unfavorable. In summary, it identified several perceptual and situational factors that influence tax compliance in Bahir Dar City, though not demographic factors like gender.
Tax system in nigeria – challenges and the way forwardAlexander Decker
This document discusses challenges facing Nigeria's tax system. It outlines several key challenges: lack of statistical tax data, inability to prioritize tax efforts, poor tax administration due to understaffing and lack of training, and multiplicity of taxes. The document examines these challenges in more detail and argues that addressing these issues is important for establishing an efficient and effective tax regime in Nigeria.
Government accountability and voluntary tax compliance in nigeriaAlexander Decker
This document summarizes a research study that examined the relationship between government accountability and voluntary tax compliance in Nigeria. The study tested the hypothesis that citizens' perceptions of government accountability influence their voluntary tax compliance. The findings supported the hypothesis, indicating that citizens' views of whether the government upholds its obligations to citizens shapes tax morale and voluntary tax compliance. Specifically, if citizens feel tax money is not effectively transformed into public goods, their tax morale decreases, reducing voluntary compliance. The study recommends improving public governance to motivate voluntary compliance and reduce the tax gap.
Tanzania Revenue Authority PresentationApollo Temu
The document discusses tax administration reforms in Tanzania and how the Tanzanian diaspora can contribute to development. It outlines Tanzania Revenue Authority's (TRA) reforms to modernize operations and increase voluntary tax compliance. TRA collects taxes through improved ICT systems. The document also details how the diaspora can send duty-exempt goods to qualifying organizations in Tanzania to support poverty alleviation and development projects.
This document summarizes a report on taxing the informal sector in developing countries. It begins by defining the informal sector and discussing its size in African economies. There are benefits to taxing the informal sector such as increasing government revenue, encouraging economic growth, and strengthening accountability. However, efforts to tax the informal sector face challenges related to compliance. The report discusses common strategies used like indirect taxes, withholding taxes, and presumptive tax regimes. It argues more research is needed on incentives for compliance and how to shift incentives for taxpayers, politicians, and administrators. Some countries are experimenting with new approaches but more evidence is still needed on their outcomes and impacts on development.
Presentation by Sebsbie Fekade, Ansakech Lake and Ronald Waiswa at the second annual meeting of the Ethiopian Tax Research Network, which took place in Addis Ababa on 8th October 2018.
FACTORS AFFECTING TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES IN KITALE...paperpublications3
Abstract:This study seeks to establish factors affecting tax compliance by Small and Medium Enterprises, with special emphasis on Income Tax and Value Added Tax and their effects on government revenue. Tax compliance level which is internal factor affecting tax revenue not only undermines tax administration infrastructure but also makes the tax base narrow and inequitable. The objectives of the study include establishing the influence of compliance cost, fines and penalties and attitudes of tax compliance among Small and Medium Enterprises. The study adopts a descriptive research design involving both qualitative and quantitative research methodology. The target population was 200, out of which a sample size of 132 respondents were drawn, using stratified and simple random sampling. Questionnaires were used to collect primary data from the respondents, which were analyzed using SPSS applying both descriptive and inferential analysis. There was a positive relationship between the tax and compliance cost (r=.514), fines and penalties (r=.415) attitudes (r=.546) and tax compliance. The findings showed that compliance cost, fines and penalties and attitude had significant relationship with tax compliance. It is recommended that the tax system should provide a clear and simple guideline on how to fill tax returns but also enhance taxpayer education services to enable the taxpayers understand their rights and obligations as taxpayers, there should be moderate levels of fines and taxes so that SMEs are encouraged to comply since they will keep accurate records for taxation purposes in order to avoid fines and penalties.
Keywords: Direct tax, Indirect tax, Medium enterprise, Productive expenditure, tax evasion, tax impact.
Analysis of tax morale and tax compliance in nigeriaAlexander Decker
This document analyzes tax morale and tax compliance in Nigeria. It discusses how tax morale, or the intrinsic motivation to pay taxes, affects tax compliance. The study aims to determine the effect of tax morale on taxpayers' compliance with tax policies in Nigeria. It reviews literature on factors that influence tax compliance, such as trust in government, social and cultural norms, and confidence in the legal system. The document presents theories on intrinsic motivation, ipsative possibilities, and deterrence to explain tax morale and compliance. It provides context on Nigeria's tax system and history of taxation. The results of the study showed relationships between tax compliance and factors like tax morale, trust in government, and social/cultural norms. It recommends strengthening taxpayer services and
Determinants of tax compliance behavior in ethiopia the case of bahir dar cit...Alexander Decker
This document examines the determinants of tax compliance behavior in Ethiopia, specifically in Bahir Dar City. It used a survey of 201 taxpayers to analyze factors like perception of government spending, fairness of the tax system, penalties, financial constraints, policy changes, and social influences. The results found that these factors significantly affected tax compliance, but gender and audit probability did not. Additionally, older taxpayers were found to comply less if they felt the tax system was unfair or recent policy changes were unfavorable. In summary, it identified several perceptual and situational factors that influence tax compliance in Bahir Dar City, though not demographic factors like gender.
Tax system in nigeria – challenges and the way forwardAlexander Decker
This document discusses challenges facing Nigeria's tax system. It outlines several key challenges: lack of statistical tax data, inability to prioritize tax efforts, poor tax administration due to understaffing and lack of training, and multiplicity of taxes. The document examines these challenges in more detail and argues that addressing these issues is important for establishing an efficient and effective tax regime in Nigeria.
Government accountability and voluntary tax compliance in nigeriaAlexander Decker
This document summarizes a research study that examined the relationship between government accountability and voluntary tax compliance in Nigeria. The study tested the hypothesis that citizens' perceptions of government accountability influence their voluntary tax compliance. The findings supported the hypothesis, indicating that citizens' views of whether the government upholds its obligations to citizens shapes tax morale and voluntary tax compliance. Specifically, if citizens feel tax money is not effectively transformed into public goods, their tax morale decreases, reducing voluntary compliance. The study recommends improving public governance to motivate voluntary compliance and reduce the tax gap.
Tanzania Revenue Authority PresentationApollo Temu
The document discusses tax administration reforms in Tanzania and how the Tanzanian diaspora can contribute to development. It outlines Tanzania Revenue Authority's (TRA) reforms to modernize operations and increase voluntary tax compliance. TRA collects taxes through improved ICT systems. The document also details how the diaspora can send duty-exempt goods to qualifying organizations in Tanzania to support poverty alleviation and development projects.
Tax Morale and Its Effect on Taxpayers’ Compliance to Tax Policies of the Nig...IOSR Journals
This document discusses a study investigating the effect of tax morale on taxpayers' compliance with tax policies in Nigeria. The study aims to determine how tax morale influences revenue generation. A literature review provides background on Nigeria's tax system and history. The study uses questionnaires to collect primary data, which is then analyzed using statistical software. Five hypotheses are presented regarding the relationships between tax morale, trust in government, social norms, legal systems, and traditional institutions on tax compliance. The results showed tax morale and social norms have a significant positive effect on tax compliance, while legal systems and traditional institutions do not. The study recommends educating taxpayers and future generations on tax obligations and using tax revenues appropriately.
Pakistan's current tax system is inefficient and inequitable, mobilizing insufficient revenue to adequately fund public services for the poor. It relies too heavily on indirect taxes that disproportionately burden the poor. Reforms are needed to broaden the direct tax base, reduce indirect taxes, ensure all sectors contribute fairly, and improve tax administration. These changes could strengthen domestic revenue, increase equity, and boost development outcomes.
The document summarizes that Sierra Leone is losing massive tax revenues due to tax incentives granted by the government, which undermines its ability to fund development priorities. Some key points:
- Tax incentives granted to the mining sector have caused a huge rise in revenue losses since 2009, estimated at Le 966.6 billion (US$224 million) in 2012 alone, equivalent to 8.3% of GDP.
- Revenue losses from tax incentives are far greater than what the government spends on development priorities like health, education and agriculture. In 2012, tax expenditures amounted to 59% of the entire government budget.
- The tax incentives lack transparency and parliamentary scrutiny, and it is unclear if they are effectively attract
Tax administration and revenue generation of lagos state government, nigeriaAlexander Decker
This document summarizes a research study on tax administration and revenue generation in Lagos State, Nigeria. The study examined the effectiveness of tax assessment, collection, and remittance systems. A survey was administered to 130 civil servants involved in tax administration across 5 local government areas. The findings showed that the tax administration system in Lagos State was not totally efficient and that improvements could help boost revenue generation. Specifically, the study found that tax administration impacts the revenue collected by the government and that there is a significant relationship between tax administration policies and laws. The document recommends that Lagos State implement a improved tax system to enhance administration and collections, possibly involving private organizations.
An Assessment of revenue generation drive of Lagos state government through e...Jeremy Williams
Effective taxation is critical for generating government revenue but many nations struggle with administration and compliance issues. In Lagos State, low oil prices reduced funds, increasing the urgency of boosting internally generated revenue. This study examines how Lagos State improved tax administration and the impact on revenue, citizens, and development. It analyzes the state's efforts to transform its revenue base and infrastructure for its growing population through more efficient revenue collection.
This document summarizes a research paper that studied the influence of taxpayer awareness and tax morale on tax evasion in Bandung, Indonesia. The study used a survey questionnaire to collect data from 436 taxpayers. It analyzed the data using path analysis and found that both taxpayer awareness and tax morale partially and simultaneously had a significant negative effect on tax evasion. The study concluded that increasing taxpayer awareness and tax morale can reduce levels of tax evasion.
This document discusses approaches to promote the formalization of informal economies. It identifies the main causes of large informal sectors as ill-designed regulations, unstable rules, lack of property rights, poor infrastructure, and macroeconomic instability.
The key approaches discussed are: fostering macroeconomic stability; increasing public participation in policymaking; clarifying and streamlining regulations; securing property rights; simplifying business permits; reforming taxes; and enforcing contracts through impartial legal systems. These measures aim to lower business costs and barriers to operating formally.
The document discusses various proposals to reform elections in India through digitization to reduce the influence of money and muscle power in politics. It proposes implementing an online e-voting system to curb criminalization and reduce expenditures on elections. This would help increase voter turnout and make voting more accessible. It also discusses proposals for police reforms, monitoring political party funding, and introducing state funding of elections to improve transparency and accountability.
Presentation by Winnie Mdluli of Eswatini Revenue Authority, and Fabrizio Santoro of ICTD at the 7th annual ICTD meeting in Kigali on February 5th 2019.
ax Evasion is a illegal way of reducing tax. Developing countries like Bangladesh loses huge amount of taxes because of tax Evasion. Government loses about 2 billion taxes from Multinational industries in Bangladesh. It is said that 200 multinational companies have been working in Bangladesh.
The document provides an introduction to a study on tax evasion in Bangladesh. It begins by outlining how developing countries like Bangladesh face challenges in establishing effective tax systems compared to developed countries. This leads to issues like tax evasion that reduce the amount of revenue collected.
The document then notes that tax is the primary source of government revenue in Bangladesh but there remains a gap between expenditures and tax collections. This gap has increased in recent years despite rising tax revenues. One major reason for this is tax evasion among taxpayers.
Finally, it provides the background, objectives and limitations of the study, which aims to identify factors influencing tax evasion in Bangladesh and find solutions to reduce it. The study collects secondary data from various
Tax Justice: The Domestic Perspective - A Synthesis of Studies of the Tax Sys...Dr Lendy Spires
This document discusses tax systems in five developing countries: Cambodia, Kenya, Nepal, Nigeria, and Tanzania. It finds that:
1) Tax revenue as a percentage of GDP has increased 3-5% over the last decade in all five countries, though they remain below the 20% target.
2) Dependence on foreign aid has decreased significantly in three countries as domestic revenue has increased faster than aid.
3) Indirect taxes make up a larger share of revenue than direct taxes in most countries, though direct tax shares are rising over time as economies develop.
Doing Business in South Africa - Adams & AdamsTAG Alliances
The purpose of this guide is to give readers a brief overview of key aspects of South African law. It is aimed at organisations and persons from other countries who are interested in doing business in South Africa.
This guide gives indications of applicable considerations from a commercial, tax and general regulatory point of view. Areas covered include, Black Economic Empowerment, Company Law
Types of Business Entities, Mergers & Acquisitions, Corporate Governance, Overview Of The South African Tax System, Exchange Control, Employment Law, Work Permits & Visa, Competition Law, Data Protection, Intellectual Property, ICT Law, and Agency, Licensing, Distribution and Financing.
This document discusses the role of tax stamps in implementing an ideal state excise policy in India. It notes that excise taxes on alcohol are an important source of state revenue. While revenue generation is important, excise policy must also consider public health and curb illicit trade. Tax stamps can help reduce consumption, generate revenue, and protect consumers by allowing for product authentication and monitoring supply chains. The document argues that tax stamps should be viewed not just as a tax collection tool but as a platform to meet policy goals like reducing consumption, securing revenue, and empowering consumers and industries.
- The Albanian Institute of Science is a non-governmental organization that aims to enhance transparency and accountability in Albanian governance through open data projects.
- Its new platform will publish electoral spending data including donations and donors for the upcoming June 21st local elections in an effort to increase transparency around political financing.
- The platform integrates various data sources related to government spending, state-owned company contracts, and politicians' assets to provide a more comprehensive view of money in politics.
The document summarizes a study on the gaps and problems between the business community and public sector in Dire Dawa, Ethiopia. Key findings include:
- Category C taxpayers face overestimation of income in standard tax assessments, lack transparency in the assessment system, and have no trust in the tax authority.
- Both taxpayers and the tax authority experience poor communication and lack of understanding. Taxpayers perceive the system as unfair while the authority believes taxpayers are dishonest.
- The tax authority suffers from weak enforcement of tax laws, unsatisfactory service delivery due to lack of resources and high staff turnover, resulting in poor institutional capacity.
- Revising the assessment system and building institutional capacity through stakeholder involvement is recommended to address
Assessing the gaps and problems that exist between the business community and...Alexander Decker
This study assessed challenges faced by businesses in Dire Dawa, Ethiopia relating to taxation. 183 businesses participated via survey. Category C businesses, with annual turnover ≤$100,000, faced the most problems. They perceived taxes as unfair and beyond their ability to pay. Category C assessment via estimates led to inflated incomes and distrust between taxpayers and authorities. Record keeping also posed challenges for Categories A and B. Most taxpayers lacked understanding of procedures. The study concluded the tax authority needs reforms to increase transparency, trust and understanding between taxpayers and authorities.
UNFCCC- Report of the Subsidiary Body for Implementation on its fortieth sess...Dr Lendy Spires
The document contains draft decisions from the United Nations Subsidiary Body for Implementation on various topics:
1) It welcomes the 2013 joint annual report of the Technology Executive Committee and Climate Technology Centre and Network and their work to implement the UNFCCC Technology Mechanism.
2) It approves revisions to the UNFCCC's financial procedures required to adopt International Public Sector Accounting Standards for financial reporting.
3) It recognizes opportunities for support of Turkey and other Annex I parties with special circumstances recognized by the COP to benefit from UNFCCC support bodies until 2020.
4) It requests the CDM Executive Board and JI Supervisory Committee to collaborate on establishing a joint accreditation
The document discusses the issue of increasing global energy demand and reliance on fossil fuels, which contributes to climate change. It proposes increasing energy efficiency, renewable energy sources, and access to energy services by 2030. Specific initiatives are outlined to double energy efficiency, increase renewable energy's share, and ensure universal energy access through regional partnerships and platforms to accelerate adoption of efficient products, buildings, vehicles, and renewable energy development like the Africa Clean Energy Corridor. The initiatives aim to sustainably meet growing demand through cooperation across countries, businesses, and organizations.
The document discusses mobilizing climate finance through carbon pricing. It states that a robust price on carbon is one of the most effective strategies to unlock private investment for climate action. Currently around 22% of global emissions are covered by some form of carbon pricing mechanism. The document calls for strengthening carbon pricing policies and increasing public-private collaboration to accelerate progress towards comprehensive carbon pricing applied globally. Key deliverables mentioned include increasing dialogue between policymakers and companies, encouraging leading companies to champion carbon pricing, and exploring ways to connect separate carbon pricing systems to increase market scale and efficiency.
Tax Morale and Its Effect on Taxpayers’ Compliance to Tax Policies of the Nig...IOSR Journals
This document discusses a study investigating the effect of tax morale on taxpayers' compliance with tax policies in Nigeria. The study aims to determine how tax morale influences revenue generation. A literature review provides background on Nigeria's tax system and history. The study uses questionnaires to collect primary data, which is then analyzed using statistical software. Five hypotheses are presented regarding the relationships between tax morale, trust in government, social norms, legal systems, and traditional institutions on tax compliance. The results showed tax morale and social norms have a significant positive effect on tax compliance, while legal systems and traditional institutions do not. The study recommends educating taxpayers and future generations on tax obligations and using tax revenues appropriately.
Pakistan's current tax system is inefficient and inequitable, mobilizing insufficient revenue to adequately fund public services for the poor. It relies too heavily on indirect taxes that disproportionately burden the poor. Reforms are needed to broaden the direct tax base, reduce indirect taxes, ensure all sectors contribute fairly, and improve tax administration. These changes could strengthen domestic revenue, increase equity, and boost development outcomes.
The document summarizes that Sierra Leone is losing massive tax revenues due to tax incentives granted by the government, which undermines its ability to fund development priorities. Some key points:
- Tax incentives granted to the mining sector have caused a huge rise in revenue losses since 2009, estimated at Le 966.6 billion (US$224 million) in 2012 alone, equivalent to 8.3% of GDP.
- Revenue losses from tax incentives are far greater than what the government spends on development priorities like health, education and agriculture. In 2012, tax expenditures amounted to 59% of the entire government budget.
- The tax incentives lack transparency and parliamentary scrutiny, and it is unclear if they are effectively attract
Tax administration and revenue generation of lagos state government, nigeriaAlexander Decker
This document summarizes a research study on tax administration and revenue generation in Lagos State, Nigeria. The study examined the effectiveness of tax assessment, collection, and remittance systems. A survey was administered to 130 civil servants involved in tax administration across 5 local government areas. The findings showed that the tax administration system in Lagos State was not totally efficient and that improvements could help boost revenue generation. Specifically, the study found that tax administration impacts the revenue collected by the government and that there is a significant relationship between tax administration policies and laws. The document recommends that Lagos State implement a improved tax system to enhance administration and collections, possibly involving private organizations.
An Assessment of revenue generation drive of Lagos state government through e...Jeremy Williams
Effective taxation is critical for generating government revenue but many nations struggle with administration and compliance issues. In Lagos State, low oil prices reduced funds, increasing the urgency of boosting internally generated revenue. This study examines how Lagos State improved tax administration and the impact on revenue, citizens, and development. It analyzes the state's efforts to transform its revenue base and infrastructure for its growing population through more efficient revenue collection.
This document summarizes a research paper that studied the influence of taxpayer awareness and tax morale on tax evasion in Bandung, Indonesia. The study used a survey questionnaire to collect data from 436 taxpayers. It analyzed the data using path analysis and found that both taxpayer awareness and tax morale partially and simultaneously had a significant negative effect on tax evasion. The study concluded that increasing taxpayer awareness and tax morale can reduce levels of tax evasion.
This document discusses approaches to promote the formalization of informal economies. It identifies the main causes of large informal sectors as ill-designed regulations, unstable rules, lack of property rights, poor infrastructure, and macroeconomic instability.
The key approaches discussed are: fostering macroeconomic stability; increasing public participation in policymaking; clarifying and streamlining regulations; securing property rights; simplifying business permits; reforming taxes; and enforcing contracts through impartial legal systems. These measures aim to lower business costs and barriers to operating formally.
The document discusses various proposals to reform elections in India through digitization to reduce the influence of money and muscle power in politics. It proposes implementing an online e-voting system to curb criminalization and reduce expenditures on elections. This would help increase voter turnout and make voting more accessible. It also discusses proposals for police reforms, monitoring political party funding, and introducing state funding of elections to improve transparency and accountability.
Presentation by Winnie Mdluli of Eswatini Revenue Authority, and Fabrizio Santoro of ICTD at the 7th annual ICTD meeting in Kigali on February 5th 2019.
ax Evasion is a illegal way of reducing tax. Developing countries like Bangladesh loses huge amount of taxes because of tax Evasion. Government loses about 2 billion taxes from Multinational industries in Bangladesh. It is said that 200 multinational companies have been working in Bangladesh.
The document provides an introduction to a study on tax evasion in Bangladesh. It begins by outlining how developing countries like Bangladesh face challenges in establishing effective tax systems compared to developed countries. This leads to issues like tax evasion that reduce the amount of revenue collected.
The document then notes that tax is the primary source of government revenue in Bangladesh but there remains a gap between expenditures and tax collections. This gap has increased in recent years despite rising tax revenues. One major reason for this is tax evasion among taxpayers.
Finally, it provides the background, objectives and limitations of the study, which aims to identify factors influencing tax evasion in Bangladesh and find solutions to reduce it. The study collects secondary data from various
Tax Justice: The Domestic Perspective - A Synthesis of Studies of the Tax Sys...Dr Lendy Spires
This document discusses tax systems in five developing countries: Cambodia, Kenya, Nepal, Nigeria, and Tanzania. It finds that:
1) Tax revenue as a percentage of GDP has increased 3-5% over the last decade in all five countries, though they remain below the 20% target.
2) Dependence on foreign aid has decreased significantly in three countries as domestic revenue has increased faster than aid.
3) Indirect taxes make up a larger share of revenue than direct taxes in most countries, though direct tax shares are rising over time as economies develop.
Doing Business in South Africa - Adams & AdamsTAG Alliances
The purpose of this guide is to give readers a brief overview of key aspects of South African law. It is aimed at organisations and persons from other countries who are interested in doing business in South Africa.
This guide gives indications of applicable considerations from a commercial, tax and general regulatory point of view. Areas covered include, Black Economic Empowerment, Company Law
Types of Business Entities, Mergers & Acquisitions, Corporate Governance, Overview Of The South African Tax System, Exchange Control, Employment Law, Work Permits & Visa, Competition Law, Data Protection, Intellectual Property, ICT Law, and Agency, Licensing, Distribution and Financing.
This document discusses the role of tax stamps in implementing an ideal state excise policy in India. It notes that excise taxes on alcohol are an important source of state revenue. While revenue generation is important, excise policy must also consider public health and curb illicit trade. Tax stamps can help reduce consumption, generate revenue, and protect consumers by allowing for product authentication and monitoring supply chains. The document argues that tax stamps should be viewed not just as a tax collection tool but as a platform to meet policy goals like reducing consumption, securing revenue, and empowering consumers and industries.
- The Albanian Institute of Science is a non-governmental organization that aims to enhance transparency and accountability in Albanian governance through open data projects.
- Its new platform will publish electoral spending data including donations and donors for the upcoming June 21st local elections in an effort to increase transparency around political financing.
- The platform integrates various data sources related to government spending, state-owned company contracts, and politicians' assets to provide a more comprehensive view of money in politics.
The document summarizes a study on the gaps and problems between the business community and public sector in Dire Dawa, Ethiopia. Key findings include:
- Category C taxpayers face overestimation of income in standard tax assessments, lack transparency in the assessment system, and have no trust in the tax authority.
- Both taxpayers and the tax authority experience poor communication and lack of understanding. Taxpayers perceive the system as unfair while the authority believes taxpayers are dishonest.
- The tax authority suffers from weak enforcement of tax laws, unsatisfactory service delivery due to lack of resources and high staff turnover, resulting in poor institutional capacity.
- Revising the assessment system and building institutional capacity through stakeholder involvement is recommended to address
Assessing the gaps and problems that exist between the business community and...Alexander Decker
This study assessed challenges faced by businesses in Dire Dawa, Ethiopia relating to taxation. 183 businesses participated via survey. Category C businesses, with annual turnover ≤$100,000, faced the most problems. They perceived taxes as unfair and beyond their ability to pay. Category C assessment via estimates led to inflated incomes and distrust between taxpayers and authorities. Record keeping also posed challenges for Categories A and B. Most taxpayers lacked understanding of procedures. The study concluded the tax authority needs reforms to increase transparency, trust and understanding between taxpayers and authorities.
UNFCCC- Report of the Subsidiary Body for Implementation on its fortieth sess...Dr Lendy Spires
The document contains draft decisions from the United Nations Subsidiary Body for Implementation on various topics:
1) It welcomes the 2013 joint annual report of the Technology Executive Committee and Climate Technology Centre and Network and their work to implement the UNFCCC Technology Mechanism.
2) It approves revisions to the UNFCCC's financial procedures required to adopt International Public Sector Accounting Standards for financial reporting.
3) It recognizes opportunities for support of Turkey and other Annex I parties with special circumstances recognized by the COP to benefit from UNFCCC support bodies until 2020.
4) It requests the CDM Executive Board and JI Supervisory Committee to collaborate on establishing a joint accreditation
The document discusses the issue of increasing global energy demand and reliance on fossil fuels, which contributes to climate change. It proposes increasing energy efficiency, renewable energy sources, and access to energy services by 2030. Specific initiatives are outlined to double energy efficiency, increase renewable energy's share, and ensure universal energy access through regional partnerships and platforms to accelerate adoption of efficient products, buildings, vehicles, and renewable energy development like the Africa Clean Energy Corridor. The initiatives aim to sustainably meet growing demand through cooperation across countries, businesses, and organizations.
The document discusses mobilizing climate finance through carbon pricing. It states that a robust price on carbon is one of the most effective strategies to unlock private investment for climate action. Currently around 22% of global emissions are covered by some form of carbon pricing mechanism. The document calls for strengthening carbon pricing policies and increasing public-private collaboration to accelerate progress towards comprehensive carbon pricing applied globally. Key deliverables mentioned include increasing dialogue between policymakers and companies, encouraging leading companies to champion carbon pricing, and exploring ways to connect separate carbon pricing systems to increase market scale and efficiency.
UNFCCC- Report of the Subsidiary Body for Implementation on its fortieth sess...Dr Lendy Spires
This document summarizes the proceedings of the 40th session of the UNFCCC Subsidiary Body for Implementation, held in Bonn from June 4-15, 2014. It discusses the organizational matters of the session, including adoption of the agenda. It also summarizes the discussions and outcomes on a wide range of agenda items, including reporting from Annex I and non-Annex I parties, mechanisms under the Kyoto Protocol, matters relating to least developed countries, national adaptation plans, and the Warsaw International Mechanism on Loss and Damage. Draft decisions from the session were forwarded to the Conference of the Parties for consideration and adoption.
The document summarizes the partnership between UNEP and UN-Habitat called the Greener Cities Partnership. It discusses their history of collaboration over 20 years to promote environmental sustainability in urban development. The current partnership aims to strengthen synergies between the two agencies in areas like resilient and resource efficient cities, sustainable transport, and waste management. It provides details on priority programs and budgets to guide cooperation between 2014-2016.
This document provides a summary of Poland's implementation of WSIS outcomes over the past 10 years. It highlights that Poland has made significant progress in developing its information society and ICT sector since transitioning to a democratic system in the 1980s. The summary discusses statistics that show growth in internet access, ICT usage in households and enterprises, the ICT sector and R&D expenditures. It also outlines Poland's commitments to implementing WSIS action lines and initiatives to further develop its inclusive information society.
Industry and the Urge to Cluster: A Study of the Informal Sector in IndiaDr Lendy Spires
This document summarizes a study on the location choices of informal sector firms in India. The study uses firm-level data from surveys conducted by India's National Sample Survey Organisation to analyze why informal firms choose to locate in certain districts. It finds that agglomeration economies like buyer-supplier linkages and industrial diversity make districts more attractive for firms. Infrastructure quality is also important. The study concludes that while agglomeration forces drive location of informal firms, public policy may have limited ability to encourage relocation of these firms due to the strong influence of geography on their location decisions.
The effectiveness of continuing professional developmentDr Lendy Spires
This document provides a summary of a report on the effectiveness of continuing professional development (CPD). The report was commissioned by the General Medical Council and Academy of Medical Royal Colleges and involved researchers interviewing medical practitioners and educators across specialties about their experiences with and views on CPD.
Key findings from the research included that conferences, local events, and journals were the most commonly reported CPD activities. Interest, addressing knowledge gaps, and reflection on practice were most influential in determining CPD participation. The greatest impacts of CPD were found to be changes in treatment practice, knowledge acquisition, and learner satisfaction. Colleges and faculties were most often identified as responsible for CPD provision and content. Experience was most often reported
Executive committee meeting for the inaugral general assembly of the world e ...Dr Lendy Spires
The document discusses plans for the inaugural general assembly of the World e-Governments Organization of Cities and Local Governments. The organization aims to improve quality of life worldwide through IT-led public administration. The assembly will take place in September 2010 in Seoul, South Korea, and will include sessions on e-government projects, cooperation opportunities, and selecting initial projects. Attendees will also vote to approve the organization's statute and charter its executive committee. The document provides draft schedules, discusses the organization's relationship to other international groups, and outlines potential collaborative projects around e-government best practices and resource sharing.
Engaging parents in the career development of young peopleDr Lendy Spires
This report summarizes research on strategies to engage parents in their children's career development in Australia. It conducted a survey of career organization members and reviewed international research. It found that while parental engagement is important, evidence of effective strategies is limited. Australian strategies typically involve information sessions, career expos, and dedicated webpages, focused on high school students. However, best practices internationally involve interactive engagement, multiple simultaneous channels, and raising parents' educational aspirations. The report concludes Australian strategies are still developing and not yet at the level of international best practices.
This document provides an executive summary of a sector assessment report on microfinance in Myanmar. It finds that Myanmar has a small, underdeveloped financial sector dominated by state-owned banks. The microfinance sector has grown rapidly in recent years but still reaches a small portion of the population and faces challenges including a restrictive regulatory environment. The report provides recommendations to strengthen the policy, regulatory, and supervisory framework for microfinance, expand the demand and supply of microfinance services, develop the financial market infrastructure, and improve funder effectiveness.
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The study looked at an in-depth understanding of the tax systems in relation to the informal sectors in Harare, Zimbabwe. The research design for the study was a descriptive survey. The study methodology
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Tax investigation is an inspection of taxpayer records and documents to ensure the correct amount of reported income and taxes are paid according to tax laws. Investigations only occur when there is clear evidence a taxpayer is deliberately avoiding taxes or committing tax fraud. During investigations, correspondence between tax authorities and taxpayer representatives must be on a "without prejudice" basis, except in criminal tax cases where notes and recordings can be used in litigation. Upon completion of a civil tax investigation, a settlement agreement is entered into between the tax authority director general and the taxpayer.
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The study looked at an in-depth understanding of the tax systems in relation to the informal sectors in Harare, Zimbabwe. The research design for the study was a descriptive survey. The study methodology was mixed methods. The study used interviews and surveys as data collection tools. The findings revealed that presumptive tax is the main tax system used by tax authorities on the informal sector. In addition to this, the study revealed that players in the informal sector were not willing to formalise their operations for non-recognition in the formal system. The study recommended that presumptive tax must not be punitive and should not cripple the operations of the informal sector.
TAX SYSTEM IN THE INFORMAL SECTOR: A CASE STUDY OF HARARE INFORMAL SECTOR TAX...ectijjournal
The study looked at an in-depth understanding of the tax systems in relation to the informal sectors in Harare, Zimbabwe. The research design for the study was a descriptive survey. The study methodology was mixed methods. The study used interviews and surveys as data collection tools. The findings revealed that presumptive tax is the main tax system used by tax authorities on the informal sector. In addition to this, the study revealed that players in the informal sector were not willing to formalise their operations for non-recognition in the formal system. The study recommended that presumptive tax must not be punitive and should not cripple the operations of the informal sector.
This document examines policy recommendations for addressing the challenges posed by the large informal sector in developing countries, particularly in Sub-Saharan Africa. It discusses five main areas for policy interventions based on recent research: 1) improving productivity across the informal sector continuum, 2) developing public-private partnerships to implement mutually beneficial reforms, 3) increasing skills development and access to business services, 4) reducing incentives for smuggling and promoting regional trade, 5) targeting labor-intensive sectors to capitalize on demographic shifts. The informal sector plays a major role in many African economies but also undermines growth, fiscal revenues and competitiveness. Coordinated reforms are needed at national, regional and international levels.
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This study was conducted to analyze determinants of Tax Compliances among Small and Medium Enterprises (SMEs) in Mwanza region: A case study was at Buswelu ward in Ilemela district. The specific objectives were to assess the impact of taxpayers’ attitude on tax compliance, to assess the effect of tax education, the effect of tax rate and the effect of tax penalties on tax compliance. The study employed quantitative research approach, the study targets Small and Medium Enterprises (SMES) taxpayers, sample size was 175 among populace size 322 who were selected random at Buswelu ward. Data collected through questionnaires and analyzed through SPPS system version 20 were used in the analysis of the data collected. The study finding shows that tax payers perceived that there is no fairness in tax estimation and they do not trust that their tax contributions are used properly by the government. Also finding shows that tax education provides awareness to tax payers on the importance of paying tax, provides information to tax payers about guidelines and laws related to tax payments and services results into higher compliance levels, thus more of funds through revenue collection. This study concludes that tax payer’s attitude, tax education and tax rate are the significant predictors of tax compliance. Tax compliance can be improved if tax payers have positive attitude towards paying tax; perceptions that there is fairness in tax administration, The study recommends that the government should ensure equity in government spending, to ensure fairness in tax rate estimation, to ensure transparency and overcome the problem of corruptions and misuse of fund, also the study emphasized in provide education to tax payers through different means through trainings, seminars, workshops and programs through radio, television and social media, because it increases awareness of tax payers on tax payments. This brought trust to the government which in turn contributed in creating positive attitude of taxpayers to comply with tax filing, reporting and payments.
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Ethiopia has experienced strong GDP growth over the last decade. To maintain this growth, the government is pursuing goals in its second Growth and Transformation Plan including agriculture, industry, infrastructure, human development, and good governance. Domestic resource mobilization is challenging but important to fund development and achieve SDGs. Tax collection represents the largest source of DRM in Ethiopia but faces issues like tax evasion. International tools like TADAT can help strengthen Ethiopia's tax administration through better compliance, enforcement, and governance. Ethiopia still needs to improve political commitment, fairness, transparency, human and technical capacity, and address illicit financial flows to boost its domestic resource mobilization.
https://www.ijmst.com/
IJMST Volume 1 Issue 5, Manuscript 3
This study sought to examine the effect of tax authority regulation and administration on
voluntary compliance among small-scale businesses in Kakamega Municipality. The
beneficiaries of the study are to be the Kenya revenue authority and relevant tax agencies. It
may serve as input in designing the tax system both at the counties and national government;
may serve as a reference for further studies in this area The research design adopted was a
descriptive survey as the findings were be generalized to a large population and it will
determine the current situation on the ground thereby providing the opportunity to improve it
accordingly. Data was collected using structured questionnaires to 124 sampled taxpayers
purposively sampled. Markets were stratified in the identification of business. The project
was analyzed using descriptive statistics and SPSS. The taxpayers do not to comply with the
tax laws due to overstatement of tax rates or lack of tax equity and ineffectiveness of the tax
authority. It needs to strengthen itself by educating and training its employees, by
computerizing its operations and devoting additional resources.
Deterrent tax measures and tax compliance in nigeriaAlexander Decker
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This document discusses informality in Mauritius and a campaign to promote formality. It defines informality as work done without declaring income or paying taxes, including some legal jobs. In Mauritius, common informal work includes street vending. The government is building an urban terminal to relocate street vendors and encourage formality by registering with the Ministry of Labor to receive benefits like pensions, social welfare, and access to loans. While some may resist formality due to favoritism or tax evasion, promoting empowerment initiatives can overcome resistance by ensuring proper monitoring and field checks. Going formal is important for individual and national economic security.
FACTORS AFFECTING TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES IN KITALE...paperpublications3
Abstract:This study seeks to establish factors affecting tax compliance by Small and Medium Enterprises, with special emphasis on Income Tax and Value Added Tax and their effects on government revenue. Tax compliance level which is internal factor affecting tax revenue not only undermines tax administration infrastructure but also makes the tax base narrow and inequitable. The objectives of the study include establishing the influence of compliance cost, fines and penalties and attitudes of tax compliance among Small and Medium Enterprises. The study adopts a descriptive research design involving both qualitative and quantitative research methodology. The target population was 200, out of which a sample size of 132 respondents were drawn, using stratified and simple random sampling. Questionnaires were used to collect primary data from the respondents, which were analyzed using SPSS applying both descriptive and inferential analysis. There was a positive relationship between the tax and compliance cost (r=.514), fines and penalties (r=.415) attitudes (r=.546) and tax compliance. The findings showed that compliance cost, fines and penalties and attitude had significant relationship with tax compliance. It is recommended that the tax system should provide a clear and simple guideline on how to fill tax returns but also enhance taxpayer education services to enable the taxpayers understand their rights and obligations as taxpayers, there should be moderate levels of fines and taxes so that SMEs are encouraged to comply since they will keep accurate records for taxation purposes in order to avoid fines and penalties.
General Perception of Self Employed Nigerian on Tax Aviodance and Evasion A S...ijtsrd
This document summarizes a study on tax avoidance and evasion among self-employed Nigerians. The study examined literature and administered questionnaires in Anambra and Delta States. Results found that respondents felt tax evasion was sometimes ethical and there was a significant relationship between cultural practices, views on tax administration, and tax avoidance/evasion. It was recommended that tax rates be reviewed regularly, authorities be accountable, and assistance be provided to self-employed taxpayers. In general, the document discusses the problem of tax avoidance and evasion in Nigeria, how it reduces government revenues and hinders development, and the need to investigate perceptions that drive these practices.
This document summarizes a study on the experiences of women working in Ghana's informal sector regarding tax collection. The study found that while 95% of women surveyed pay taxes regularly, 57% do not feel well informed on why they pay taxes and over 50% do not see their tax money going towards public services or projects. The tax system is not seen as fair or inclusive for these women. The document analyzes these findings and makes recommendations for making the tax system more responsive, accountable and fair in order to strengthen the relationship between citizens and the state.
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
Ict access and usage among informal businesses in africaDr Lendy Spires
This document analyzes ICT access and usage among informal businesses in Africa. The key points are:
- Mobile phones are the most commonly used ICT, while other technologies like computers and internet are rarely used due to issues of need, affordability, availability and access.
- Informal businesses communicate more with suppliers than customers via mobile phones.
- ICTs have potential to help informal businesses deepen distribution channels and do business over distance more affordably through mobile phones and mobile money.
- Policymakers could address affordability and access issues in the informal sector by promoting competition, removing import duties on airtime, and supporting mobile app development for informal businesses.
Similar to Informationsectortaxationintanzania 12 (20)
Ict access and usage among informal businesses in africa
Informationsectortaxationintanzania 12
1. The Economic and Social Research Foundation
TAKNET Policy Brief Series No. 012 - 2010
Informal Sector Taxation in Tanzania
Moderated by: Apronius Mbilinyi : Synthesized by: Deogratias Mutalemwa
1.0 Introduction:
One of the challenges facing
most developing countries
including Tanzania is the
presence of highly growing
informal sector; the presence of
this sector is a challenge for
taxation, regulation, financing,
reforms, and provision for social
services with efforts to alleviate
poverty. The informal sector in
Tanzania consists of mainly the
unregistered and hard-to tax
groups such as small scale
traders, famers, small
manufacturers, craftsmen,
individual professionals and
many small scale businesses. The
number of informal operators in
Tanzania is growing fast and their
share to the GDP is large
(currently estimated at 40%);
indicating that when they are not
taxed substantially, the
Government loses revenue. Few
success lessons can be drawn
from countries such as Ghana
and Cameroon.
The complexity of collecting
income tax from the sector arises
from its characteristics that
include: absence of business
premises, mobile nature of the
operators, high tax collection
cost, aggressive nature of the
actors, cash operation and
absence of data and information.
These characteristics make it
hard to tax the sector, hence
posing bigger challenges for
income tax revenue collection.
2.0 Objective of the
Discussion
The discussion was organized
with the view of providing a
platform to forum members to
discuss and express their view on
the importance of Informal
Sector Taxation in Tanzania and
to find out what should be done
to enhance government revenue
collection and options to curb the
income tax evasion problem in
the informal sector.
The total number of contributing
entries was 66 from 17
participants. It is not entirely fair
to single out individuals for
commendation but Omari
Mwinyi Khamis, Apronius
Mbilinyi, Getrude Mugizi and
Rah Kachwa stand out for
mentioning due to the frequency
of their interventions. Many of
the contributions have been very
useful and resourceful. The
exchanges have commented on:
(i) challenges of unreliability of
data on informal sector operators,
(ii) tax payment and
administration practices in
Tanzania, (iii) tax laws,
compliance and payment
monitoring, (iv) tax collection
capacity of TRA and local
councils, (v) tax payment
motivations and disincentives,
and (vi) other options for boosting
government revenue besides
taxes and levies imposed on the
informal sector.
Why the discussion of the subject
on Taxation of the Informal Sector
digressed into wide ranging ideas
that may seem to cross beyond
the core subject, was succinctly
provided by the Moderator of the
discussion (Apronius Miblinyi).
He said: “One may wonder why
the discussion of informal sector
taxation goes as far as touching
governance and other issues
such as transparency,
accountability, fiscal policies
such as budget and state
management of the economy.
The reason is that in principle
tax links a state and its citizens.
Once the state is run by citizens’
taxes, it has to be accountable
for them and use the revenue
collected from taxation to
provide public services such as
education, health, roads, safety,
etc. The contrary is that if the
2. government is run from other
sources (say aid or grants) that
link may be lost”.
3.0 The Rationale for
Informal Sector Taxation
As indicated earlier, the informal
sector in Tanzania contributes
about 40% to GDP. “the revenue
lost from not taxing the informal
sector amounts to 35-55 per
cent of the total tax revenue”.
These statistics should be taken in
with caution as some of the
participants question the
definition used to describe the
sector. Yet all agree that the
current tax base is too narrow
and those who bear the tax
burden are complaining
(Khamis). Intriguingly, Khamis
counters the popular belief that
the informal sector escapes
taxation, by saying “if you
observe carefully these informal
business people are indirectly
paying tax.” He means for
instance that they pay VAT
through purchases of goods and
services and even direct tax such
as through sale of agricultural
produce. Also PAYE was
mentioned in this regard as a
direct taxation that has embraced
the low income earners.
4.0 Tax Administration
Practices and Challenges
Lack of reliable records on
numbers of expected tax payers,
let alone informal sector
operators, has haunted tax
planners and collectors (Mbilinyi,
Khamis, Getrude Mugizi, Festo
Maro). This problem might be
alleviated under the pending
issuance of national ID cards
although, as some TAKNET
commentators mentioned, it is
not certain if the IDs will have the
facility to cater for such potential
specific requirements. In
developed countries, a lot of
businesses are still run as SMEs
and even as informal sector but
because of efficient business
registration and national ID
records these sectors do not
escape the ambit of the taxman.
In Tanzania such all-
encompassing nationwide
business registration is still
nascent (under the Business
Activities Registration Act or
BARA of 2007). The MKURABITA
initiative has also been
mentioned as a good attempt to
legalise ownership of fixed assets
that would enhance the worth of
informal sector activities and thus
increase areas of taxable
opportunities.
One TAKNET commentator
lamented the removal of the poll
tax in the 1960s. In the current
realistic situation calling for more
self-reliance in resourcing budget
funds, the poll tax may be was
one way of mobilising everybody
including those owning or
working in the informal sector to
contribute to the cost of
providing public services. Many
known businesses are not easily
taxed at present. Those
mentioned in the discussion
include rented houses (“Many
people have rented their houses,
apartments and rooms for
accommodation and business
but do not pay income tax -
Mbilinyi. Others include, tourist
operators and craftsmen and
privately operating professionals
such as accountants, lawyers,
economists, engineers, builders,
carpenters, welders, or even
fishermen, gemstone dealers, etc,
(Khamis, Michael Mpombo).
A wild guess was that the
informal sector participants may
have as many as 4-5 million
potential tax payers who are not
paying income tax at the
moment. Another figure (which
should also be taken with
vigilance) was that only 590,909
people out of the country’s
population (Maro) are paying
direct tax (income tax)! In this
regard, TRA has been blamed for
lacking inventiveness to set up in
this area a suitable administrative
structure to capture all potential
tax revenues, in which they could
use the existing street/village
level administrative structure to
“get information of who is
working where, who does what,
which businesses are registered,
which house is for renting,
which motor vehicle/motorbike
is registered, etc“ (Maro). It was
argued that if TRA lacks capacity
in this respect it should resort to
development partners to offer
needed assistance or to
development banks for that
matter. Whether or not accurate
(Nikubuka Shimwela), it was
suggested that TRA’s lack of effort
to net more tax payers was
because “some of the activities
are owned by big shots” (Maro,
Mbilinyi, Japhet Makongo).
Other challenging features
pointed out by commentators
(especially Kachwa, Mugizi,)
and in trying to explain why the
informal sector is eschewing
public records and statistics for
taxation are: (i) existence of a
multiplicity of operators with very
low-income levels and thus low
tax yielding potentials for TRA,
that therefore entail high
transaction costs to deal with, (ii)
most of these operators also do
not interface with traditionally
record-keeping establishments
such as banks and other formal
business entities, and (iii) they
themselves may not be keeping
records anyway.
In addition, the problem of
records was aggravated by lack of
3. business and sales transaction
receipting even by those
registered as tax payers. In this
regard, the TAKNET
commentators (Ram Lyer,
Khamis, Maro) commended TRA
for introducing the Electronic
Fiscal Devices, although more
training on their use for
businessmen and the public at
large is still required.
Enforcement of receipting will go
a long way toward ensuring that
collected taxes at the consumer
level are remitted to
Government/TRA coffers and will
leverage equal treatment of all
tax-paying subjects, including
engendering equity for tax-paying
businesses that have to compete
with those that hitherto have not
been issuing sales receipts and
thus cheating the government.
Yet another problem, perhaps
more fundamental in trying to
broaden the tax base through the
informal sector, is the perception
of citizens on the merits of paying
taxes in general. Mugizi says
“Studies have shown that
generally voluntary tax
compliance increases as people’s
faith in what the government is
doing with their taxes increases.
Voluntary tax compliance is
necessary to persuade the
informal sector potential
taxpayers to even allow
themselves to be identified “.
Mbilinyi, Kachwa, Makongo,
Shabbir Zavery and Deo
Mutalemwa corroborate this
view by stressing that trust in the
state (and even tax compliance)
is enhanced by the latter
providing social and economic
infrastructure services accessible
to business operators.
Mutalemwa and Mugizi add the
dimension of judicious spending
of public funds and the ability of
tax payers (and auditors) being
able to question the quality of
spending. Mbilinyi quoted a
primer guide from the World
Bank saying “ ...successful
broadening the tax base to
informal activities should pay
attention to government
accountability, since the culture
of compliance depends on tax
morale i.e. the extent to which
the citizens trust the state.
…….”
5.0 Recommendations
The following recommendations
have been discerned from the
contributions: Enhance TRA
Capacity (Mugizi): Here people
warned about the danger of
deflecting the actual target of
spending capacity building funds
by for instance spending them
exceedingly on training, work
shopping and all sorts of
allowances. Track emerging
businesses (E. Ngwandu, Japhet
Makongo): register them, support
them, regulate them and tax
them, e.g. boda boda, ghutas,
bajaj, road side flower growers,
mama ntilie, etc.
Improve tax administration
including simplification of
payment procedures. Kachwa
made comments, suggesting for
instance more effective use of
the presumptive taxes stipulated
in the Income Tax Act 2004,
citing the example of Chile
under which “ a VAT simplified
regime- in this case the threshold
and management is simplified to
cater for SMEs “. He also
suggested amendment of the
Income Tax Act 2004 so that a
withholding tax system can be
applied in areas like rent income
whereby individual tenants can
submit rent tax to the revenue
authority.
Introduce incentives for tax
payment like bonus for good tax
payers and special recognition to
those making full compliance
(Makongo). Also in order to
enhance the willingness of
paying taxes, in some cases link
taxes with specific infrastructure
improvements (e.g. parking lots
and roads for daladalas or selling
space for market sellers in
Kariakoo – Makongo).
Carry out a comprehensive
review exercise of government
spending generally (Edward
Shigula, Khamis, Mutalemwa).
“Our government has to learn to
spend less and this is possible -
Shigula” .Several people
expressed revulsion against
extravagance on spending on
missions, expensive vehicles
(shangingi), and too many
government ministries. We need
“a shift of mindset from being
CONSUMPTIVE to INVESTING
and a notion of saving and
investing is to be inculcated into
our leaders (and the general
public) into our cultures.” says
Kachwa. A more broad view on
reversing the mind-set and
culture of spending on non-
priorities embraced by the
government and the citizens in
general was evoked (Mutalemwa,
Khamis, Mugizi, and others).
Reintroduce the poll tax
(Khamis); call it any suitable
name if necessary (poll tax or
Kodi ya Kichwa abolished in
1969 or even the development
levy abolished in 2003).
Privatise tax collection (Marja-
Liisa Swantz, Mbilinyi).
Investigate alternative sources of
government revenue (i.e. as an
accompaniment to pursuing
taxation on the informal sector).
Khamis incessantly mentions the
mining sector, advocating for
4. further reduction of tax
exemptions and reliefs, breaking
the current taboo of government
taking up significant shares in
mineral ventures (Swedish
government invests in iron ore).
Maximising government revenue
from land rents collected by
government was also mentioned
(Mbilinyi) but this has to be
facilitated by more vigorous
efforts in plot surveying in urban
areas.
Improve tax records, including
exploring the possibility of using
the anticipated national Identity
Card to link citizens access to
various public and private
services and funds to the
imperative of paying taxes.
Khamis cites possible link of
taxes to permission to make
money remittances abroad, to
allow persons to travel out of the
country or accessing services in
the banks.
Finally, an in-depth study (survey)
should be carried out to
determine the magnitude of the
informal sector that is liable to
paying tax.
6.0 Conclusion
The TAKNET forum has made it
clear that moulding the mind-set
of citizens to recognise the duty
of paying taxes is an important
ingredient in the democratisation
process. Paying taxes empowers
them to assertively demand
accountability in government
spending, especially at the local
level where they can see what
their money (not aid money) is
actually being spent on. Mbilinyi
made a powerful statement that
“in principle, tax links a state
and its citizens”. He add that it is
“Not surprising to find the state
is being accountable to donors
and not its citizens” if it relies on
donors to finance its budget. This
needs reversing through, inter
alia, informal sector income
taxation as a way of broadening
the tax base.
The TAKNET forum is very
grateful for the contributions
received during the discussion of
this topic from: Omary Mwinyi
Khamis, Ram Lyer, Degratias
Mutalemwa, Getrude Mugizi,
Rah Kachwa, Edward Shighula,
Maria Liisa, Idelphonse
Mabamba, Nikubuka Shimwela,
Japhet Makongo, Edward
Ngwandu, Shabbir Zavery,
Godwin Nyelo, Michael
Mpombo, Abdallah Hassan,
Festo E. Maro and Apronius
Mbilinyi.
For More Information on these series please contact:
The Project Coordinator
Tanzania Knowledge Network
Economic and Social Research Foundation
P.O. Box 31226, Dar es Salaam, Tanzania
E-mail: taknet@esrf.or.tz, Website: www.taknet.or.tz
Other TAKNET Policy Briefs:
1. Growth and Poverty Reduction in Tanzania: Why such a Mismatch? (Policy Brief number 1)
2. The Role of Information and Communication Technologies (ICT) in Enhancing the Livelihood of the
Rural Poor (Policy Brief number 2)
3. Incentive Package for Foreign Direct Investment (FDI) in Tanzania (Policy Brief number 3)
4. Tatizo la Walemavu wa Ngozi (Albino) Tanzania: Nini Kifanyike? (The Plight of Albino in Tanzania)
(Policy Brief number 4)
5. Petroleum Policy and Constitutional Paradox in the United Republic of Tanzania (Policy Brief
Number 5)
6. Tanzania National Poverty Reduction Framework – MKUKUTA What are the Lessons (Policy Brief
number 6)
7. The Effect of Global Financial Crisis and Way Forward for Tanzania (Policy brief number 7)
8. 2009/10 Government Budget: What impact should be expected? (Policy Brief number 8)
9. Social Welfare and Ageing in Tanzania (Policy Brief number 9)
10. Tanzanian Cultural Environment and Economic Growth (Policy Brief number 10)
11. School Competition and Student Learning Rights (Policy Brief number 11)
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