THE Tanzania Revenue Authority (TRA) is rewriting the Value Added Tax (VAT) law with the intentions to align it with international best practice. The TRA Commissioner General, Mr Harry Kitilya, said the government also expects to enact the Tax Administration Act, which harmonises in one Act all the administrative codes and procedures.
"We are committed to creating a workable partnership with the private sector in revenue administration," he said. Mr Kitilya made his remarks on selected tax policy and administration interventions at the CEO roundtable (CEOrt) during the weekend in Dar es Salaam.
He reiterated that the discovered reserves of gas are likely to place Tanzanian economy to higher levels of development. Mr Kitilya noted that the country need it for power generation and revenue to bridge the budget gap adding that currently Tanzania does not have specific tax regime for oil and gas rather it uses existing tax laws to tax the oil and gas industry.
However he said since Oil and gas is a relatively new venture,Tanzania is faced with a number of challenges including putting in place a modern regulatory taxation and revenue management framework for the industry to be sustainable.
He noted that currently the industry is dominated by foreign experienced companies with high level technology and long-standing experience in the industry including tax planning. "Overcoming these challenges will have a significant bearing for Tanzanians to realize the benefits of their natural resources for their development," noted TRA boss.
The Tanzania Revenue Authority Act, Cap 299 established the TRA as a central board to assess, collect and account for all Central Government revenue and administer and give effect to the laws relating to such revenue.