Dodoma — Over the years, Tanzania has improved its national capacity of physically auditing mineral production and exports, a new study has established.
Launched by the Energy and Minerals Parliamentary Committee on Monday, the report on 'Taxation and the State of Africa Mining Vision implementation', attributed the introduction of mineral audit agency, the Tanzania Minerals Audit Agency (TMAA), to the achievement.
"This has resulted in identification of unpaid taxes owed, while helping to build the capacity of mining companies to calculate tax revenues payable."
Presenting the report to members of the committee, a representative of the Tax Justice Network-Africa (TINA), which conducted the study since 2011, said following the introduction of the Mining Policy of 2009, the country has also undertaken reforms in the tax systems to increase revenue from the mining sector. The move has seen the revenue increased from 2.4 per cent to about 4.4 per cent in 2001 to 2014, respectively.
However,it suggested that the country still needed to do more with respect to reviewing terms of double taxation agreements and Bilateral Investment Treaties (BIT's) which Tanzania had signed with host countries of mining companies.
The Committee's Chairman, Dotto Biteko, said the report had come at a right time, considering the ongoing exploration in various parts of the country, promising that the committee will use it as a reference tool.
Commenting on the report, Mlimba MP Susan Kiwanga said the document will be a crucial tool for her to effectively oversee the government on issues of mining taxation, considering that the country has continued to discover minerals in various areas.