Mwanza — LOCAL investors have called for improvements in the taxation system, proposing the establishment of a central authority to collect levies and distribute them to relevant institutions based on their respective shares.
The call was made recently during the Lake Zone Investors Forum in Mwanza, where participants said the current system where different authorities collect taxes causes serious inconvenience to investors.
Such authorities include the Occupational Safety and Health Administration (OSHA), Tanzania Revenue Authority (TRA), Tanzania Bureau of Standards (TBS) and National Environment Management Council (NEMC).
They noted that the situation is worsened by threats from individual authorities to close businesses when investors delay payments, regardless of the challenges they may face.
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"A central authority will absolutely solve this challenge and we need all levies to be consolidated into a single payment to be collected once a year," said Mwanza-based hotelier, Mr Lameck Mwijage. Forum participants also called for the removal of the Skills Development Levy (SDL) for local investors, arguing that it amounts to double taxation since employers already pay salaries to workers.
An investor in the industrial sector, Mr Deo Lugomola, urged greater coordination among government ministries including Lands, Water, Energy, Works and Transport in developing infrastructure at investment sites. He said investors will be more encouraged if essential services such as electricity and water were readily available, instead of facing delays of several days to secure connections.
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"These delays not only slow operations but also discourage investors from expanding their businesses," he said.
On his part, Head of Industries, Business and Investment Division at Butiama District Council in Mara Region, Ms Mbuke Majula, urged the government to strengthen investment promotion efforts across all regions, particularly those lagging behind economically.
She noted that Butiama District has set aside about 789.5 hectares of land for investment, but development has stalled due to lack of basic infrastructure. Responding to the concerns, Minister for Industry and Trade, Ms Judith Kapinga, assured investors that the government is implementing major infrastructure projects to stimulate investment.
These include plans to construct a Standard Gauge Railway (SGR) line from Tanga to Mara, as well as airports in Musoma and Serengeti districts to improve connectivity.
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