Tanzanians Endorse Taxation But See Tax Evasion As Widespread

Tax revenues account for more than 85% of Tanzania's domestic revenues and about 70% of government expenditures, according to the Bank of Tanzania. A study done by Afrobarometer finds that most (77%) Tanzanians see tax collection as legitimate and believe that the government uses tax revenues for the well-being of its citizens. Yet a majority report that citizens (46%) "often" or "always" avoid paying their taxes, and most (65%) say it is difficult to know what taxes and fees they are supposed to pay and how the government uses tax revenues.

The government has initiated several measures to improve tax compliance, including updating tax-collection technology, enhancing outreach of tax services and education to the public, restructuring the Tanzania Revenue Authority, and strengthening enforcement measures. It recently introduced a tax on mobile-money transactions, whose proceeds are intended to support the improvement of social-services delivery, including the construction of classrooms and health centres, particularly in underserved areas.

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