2015年-世界发展银行全球_Tanzania_Economic_Update_July_2015___Why_Should_Tanzanians_Pay_Taxes__The_Unavoidable_Need_to_Finance_Economic_Development_80页_16mb

Tanzania Economic Update Summary

Core Content

This Economic Update outlines the challenges and opportunities for increasing tax revenue in Tanzania to support economic development. It emphasizes the need for a comprehensive, fair, and transparent tax system, and highlights the importance of improving tax compliance to ensure the government can meet its financial obligations and invest in public goods.

Main Points

The State of the Economy

• Growth and Stability: Tanzania's economy continues to grow at a relatively high rate (around 7% annually) and maintains low inflation (around 5%).
• Fiscal Challenges: Despite economic growth, tax revenue collection remains low, at approximately 12% of GDP, and has not kept pace with the government's spending needs.
• External Shocks: The economy has shown resilience to external shocks, including the decline in oil prices and currency depreciation, but faces challenges due to reduced aid inflows and accumulated arrears.
• Fiscal Deficit: The fiscal deficit is expected to remain around 3.8–4.0% of GDP for 2015, and will increase slightly to 4.2% in 2015/16 and then decrease to 3.5% in 2016/17.
• Current Account Deficit: The current account deficit is projected to remain at 9–10% of GDP, with a shift from aid to private capital inflows.

Why Tanzanians Should Pay Taxes

• Tax Revenue Insufficiency: Tanzania's current tax revenue is insufficient to finance its public spending, especially as aid inflows decline and private sector financing remains limited.
• Need for Increased Revenue: With a growing population and rising demands for education, health, and infrastructure, Tanzania must significantly increase its tax collection efforts.
• Fiscal Contract: Tax compliance is an individual and collective responsibility, and it is essential for the government to maintain a strong fiscal contract with its citizens to ensure efficient and transparent use of public funds.

Key Messages

• Tax as a Fiscal Contract: Paying taxes is central to the fiscal relationship between the state and its citizens.
• Systemic Issues: Tanzania's low tax revenue is due to systemic issues in policy and administration.
• Global and Domestic Challenges: While the economy has shown resilience to external shocks, domestic fiscal pressures are growing, particularly due to poor tax performance and accumulated arrears.
• Need for Innovation: Tanzania needs to implement bold and innovative tax reforms, moving beyond traditional administrative measures.

Main Recommendations

1. Make the Tax System Affordable

• Simplify the System: Reduce the number of small taxes that impose a high burden on businesses without significant revenue gains.
• Reduce Tax Exemptions: Limit the use of tax exemptions to ensure broader tax base and fairer distribution of the tax burden.
• Leverage Technology: Use mobile devices and electronic payment systems to reduce transaction costs and improve compliance.
• Consider Lower Rates: Explore lowering existing tax rates to encourage private sector growth and increase the number of taxpayers.

2. Make the Tax System Perceived as Fair

• Broaden the Tax Base: Increase tax collection from under-taxed sectors and regions.
• Improve Taxation on Capital and Labor: Address the imbalance in taxation between labor and capital income.
• Introduce Tax Lotteries: Implement innovative measures like tax lotteries, where tax receipts also serve as lottery tickets, to incentivize compliance.
• Public Recognition: Recognize high tax payers publicly to encourage voluntary compliance.
• Strengthen Sanctions: Apply effective sanctions against tax evaders to enforce compliance.

3. Make the Tax System Transparent

• Publish Comprehensive Reports: The government should publish detailed and accessible reports on tax collection efforts.
• Voluntary Transparency: Private sector companies, especially in the telecom industry, have started to voluntarily disclose tax payments, which should be extended to all public entities.
• Replicate Extractive Transparency Models: Use successful initiatives like the Extractive Industries Transparency Initiative in other sectors such as tourism, finance, and communications.

Challenges and Opportunities

• Political Commitment: Tax reforms will require strong political will and may face resistance from vested interests.
• Public Perception: Many Tanzanians perceive taxes as burdensome, unfair, and lacking in transparency.
• Innovation and Technology: Mobile technology offers a promising avenue to improve tax collection efficiency and compliance.
• Sustainable Financing: The government must find sustainable and innovative ways to finance development, as aid and private capital inflows are becoming less reliable.

Conclusion

Tanzania's economic development hinges on improving tax collection. The government must implement a comprehensive approach that ensures affordability, fairness, and transparency in the tax system. This will require political commitment, public engagement, and the use of innovative tools to enhance compliance and increase revenue. Without these measures, Tanzania's ability to fund essential public services and investments will remain constrained.