Ach-F
03-06-2010, 05:50 PM
Revenue collection doubles
4th March 2010
COLLECTION of government revenue has more than doubled from 2.2trillion/- in 2005/06 financial year to the projected 5.1trillion/- in 2009/2010, reflecting a rise of 149 per cent. Finance and Economic Affairs Ministry Permanent Secretary Ramadhan Khijjah told a news conference in Dar es Salaam that monthly revenue collection are now around 400bn/-, up from 180.6bn/- that landed in government coffers four years ago. "Improved revenue collection has boosted the government's capacity to finance its operations and deliver better services to the people, which is the cardinal goal of the Fourth Phase Government," Mr Khijjah told journalists.
"We are pleased with collections, but as you know the demand is still big and as the level of revenue collection improves we will be in a position to improve the quality of services such as education, health and water," he said. The PS attributed the success in revenue collection to reforms of the taxation system, improved business environment and simplification of tax collection process, as well as widening of the tax base. "We have been able to cast the taxman's net wider," the permanent secretary said while presenting a long catalogue of the ministry's achievements over the last four years.
He said in widening of tax collection spheres, the Tanzania Revenue Authority (TRA) started to impose Value Added Taxi (VAT) on leased buildings and serviced apartments except for those provided by National Housing Corporation (NHC). The treasury also cancelled tax exemptions made through 405 government notices issued between 1964 and 2005. "Those notices did not show clearly which taxes are entitled for exemptions and they did not state the expiry period," he noted.
He said the government was in the process of introducing block management system and geographical information system to enable tax collectors trace taxpayers in their localities more easily. Despite the achievements recorded, the PS said there was still a long way to go as the government's expenditure bill was still higher than revenues. "We still have a lot to do because our expenditure stands at 10trillion/- while our collections are only 5trillion/-, you can see we still have a huge deficit that is currently covered by external loans and grants," he said. He said that the government was now promoting financial discipline and some of the measures include formation of Expenditure Tracking Unit, reforms in the public procurement Act and capacity building on Controller and Auditor General's Office.
Meanwhile, the PS said the national debt account increased to 8.25 billion US dollars (13.9trillion/-) by June 2009, up from 7.53 billion dollars (9.8trillion/-) in 2005/06. Out of it 5.69 billion dollars (7.4trillion/-) was external and 2.6 billion dollars (3.4trillion/-) domestic debt. He attributed the trend to new debts, depreciation of the shilling, commercial credits and accumulation of interest rates especially from non Paris Club lenders.
Je, hizi ndio pesa ambazo JK anakwenda kubembea nazo pamoja na shopping?
4th March 2010
COLLECTION of government revenue has more than doubled from 2.2trillion/- in 2005/06 financial year to the projected 5.1trillion/- in 2009/2010, reflecting a rise of 149 per cent. Finance and Economic Affairs Ministry Permanent Secretary Ramadhan Khijjah told a news conference in Dar es Salaam that monthly revenue collection are now around 400bn/-, up from 180.6bn/- that landed in government coffers four years ago. "Improved revenue collection has boosted the government's capacity to finance its operations and deliver better services to the people, which is the cardinal goal of the Fourth Phase Government," Mr Khijjah told journalists.
"We are pleased with collections, but as you know the demand is still big and as the level of revenue collection improves we will be in a position to improve the quality of services such as education, health and water," he said. The PS attributed the success in revenue collection to reforms of the taxation system, improved business environment and simplification of tax collection process, as well as widening of the tax base. "We have been able to cast the taxman's net wider," the permanent secretary said while presenting a long catalogue of the ministry's achievements over the last four years.
He said in widening of tax collection spheres, the Tanzania Revenue Authority (TRA) started to impose Value Added Taxi (VAT) on leased buildings and serviced apartments except for those provided by National Housing Corporation (NHC). The treasury also cancelled tax exemptions made through 405 government notices issued between 1964 and 2005. "Those notices did not show clearly which taxes are entitled for exemptions and they did not state the expiry period," he noted.
He said the government was in the process of introducing block management system and geographical information system to enable tax collectors trace taxpayers in their localities more easily. Despite the achievements recorded, the PS said there was still a long way to go as the government's expenditure bill was still higher than revenues. "We still have a lot to do because our expenditure stands at 10trillion/- while our collections are only 5trillion/-, you can see we still have a huge deficit that is currently covered by external loans and grants," he said. He said that the government was now promoting financial discipline and some of the measures include formation of Expenditure Tracking Unit, reforms in the public procurement Act and capacity building on Controller and Auditor General's Office.
Meanwhile, the PS said the national debt account increased to 8.25 billion US dollars (13.9trillion/-) by June 2009, up from 7.53 billion dollars (9.8trillion/-) in 2005/06. Out of it 5.69 billion dollars (7.4trillion/-) was external and 2.6 billion dollars (3.4trillion/-) domestic debt. He attributed the trend to new debts, depreciation of the shilling, commercial credits and accumulation of interest rates especially from non Paris Club lenders.
Je, hizi ndio pesa ambazo JK anakwenda kubembea nazo pamoja na shopping?