The study seeks to assess the feasibility of increased domestic revenue for financing Tanzania’s development aspirations. The assessment is undertaken for the aggregate tax revenue as well as its four major tax categories of income tax, value-added tax (VAT), excise duties, and import duties. This is a unique contribution of this study to the literature, as previous assessments of the Tanzanian tax system have focused on the aggregate level (Osoro,1992; Chimilila, 2018). Three procedures were undertaken to assess the performance of tax revenue mobilisation and the feasibility of increased domestic revenue mobilisation in Tanzania. First, we used the most common, and simplest procedure to compare the country’s tax-to-GDP ratio with those of comparable economies. Second, we estimated tax buoyancies for each tax category to determine their growth responsiveness to changes in the respective tax base growth. Thirdly, we estimated the taxable capacities of the tax categories and compared them with the respective tax efforts. READ ON…
Related Articles
Workshop Report: 27th Annual Research Workshop – 2023 “Galvanizing Inclusive and Sustainable Growth through Structural Transformation”
REPOA’s Annual Research Workshop continues to be the longest running and largest research workshop held in Tanzania by a Tanzanian organization, where researchers, research users, and development stakeholders meet to discuss research findings, their associated implications for development policy in Tanzania and propose areas of further strategic research.The 27th REPOA’s ARW was conducted at a […]
Domestic Revenue Mobilisation for Sustainable Development and the Contribution of IDA-20: The Assessment of Tanzania, Kenya, Uganda and Rwanda
This Policy Paper has analysed the trends and features of domestic resource mobilisation in Tanzania, Kenya, Uganda, and Rwanda. The paper has established that in all four countries, tax yields, a key component of domestic revenue mobilisation, have shown significant improvements overtime. The improvements have been accounted for by tax reform measures that these countries […]
Domestic Revenue Mobilisation for Sustainable Development in Sub-Saharan Africa and the Contribution of IDA-20
This Policy Paper has analysed trends and features of domestic resource mobilisation in Sub-Saharan Africa. The paper has established that many Sub-Saharan African countries are lagging behind their counterparts in Asia and the Pacific, Latin America and the Caribbean, and the OECD. The average tax-to-GDP ratio in SSA is 16.3%, Asia and Pacific is 19.1%, […]
Public Expenditure Review of Education Sector in Tanzania (Primary and Secondary)
Various studies have confirmed that the provision of quality education depends very much on, among other factors, the amount of budget allocated for education. Thus, the government of Tanzania has committed itself to investing in education by increasing public spending on the education sector with basic education (pre-primary, primary and secondary) receiving the highest proportion […]