A renowned Professor of Economy has warned the government to
be careful with the proposed ideas of the development partners on the tax
exemptions and wanted the stakeholders to weigh out their importance to see if
they have mutual benefits for the development of the nation. Professor Samwel
Wangwe gave the warning in Dar es Salaam yesterday when interviewed by
journalists who wanted to know the prospects of the Public Expenditure Review (PER)
process meeting discussions which started yesterday between the government and
the development partners. A two day meeting is an annual consultative meeting and
for this 2013 fiscal year, the two sides have put forward their discussions on
two major aspects basing on how to enhance tax exemptions management and
Agriculture input subsidies to farmers in the country. The forum to which
journalists were allowed to cover its opening sessions only, has been organized
by the Ministry of Finance and Economic planning. It is being attended by
Regional commissioners, District Executive directors, Permanent secretaries and
individual from private sectors, Ambassadors and High commissioners. Professor
Wangwe who is among the six invited professional economists noted that, the
government should not only depend on tax exemptions as this is not the way to
increase revenue, but has to look at how it should have benefited for the
decision taken. However, he said adding that, it was far better to enhance
investments potentials and create a conducive environment for investors instead
of relying more on tax exemptions which he further noted might cause a great lose to the government’s
revenues.
Earlier, when opening the discussion meeting, the Minister for
Finance Dr. William Mgimwa said that,
the government will continue to strengthen the PER process so that, it continues
to provide a basis for relevant dialogue on its rightful role in the management
of fiscal policy in Tanzania. The dialogue he said provides a forum for
in-depth and close relationship between stakeholders and development partners,
Compared to this year’s main aspects of discussions, in the previous budget
discussion forum agreed to undertake analytical work in five areas. In addition
to this years’ ideas, there were also equity and challenges of disadvantaged
local government authorities, development of public operational investment
manual as well as public private partnership and management of public
investments in the country. He said in an exclusive interview that, the forum
was intended to discuss the various assessments which have been overlooked by
the development partners for the benefit of the nation and see how their
advices can help increase productivity. He said, since they also are in part
contributing to the national budget, the government gives them a chance to
advise on what should be done and give technical advices on various areas as
related with the Tax exemptions and how this can help increase government
revenue. He further said that, the
government uses this forum as part of the development plans whereby their
partners gives them advices on how to make use of the budget, and the best ways
on how to collect revenue in areas that people and the nation might benefit. The
meeting which ends today is expected to come out with concrete deliberations as
main suggestions on what then government will have to adopt in its newly
controlled budget management systems. Tanzania government and its development
partners agreed on 2012 to revitalize the PER process as a result of a champion
group which has been established with responsibility to define and approve an
analytical work program to ensure its dissemination to key policy maskers as
part of the national budget cycle.
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