Tax hikes?Posted: June 3, 2009
You better believe it. In his budget preview in today’s The Citizen, Karl Lyimo makes the case that with the government struggling to raise revenue, increasing taxes would seem to be one way to put some cash in the treasury’s coffers. To wit:
To cut a long story short, it should not come as a surprise if June 11 sees Finance Minister Mkullo once again hitting the traditional victims petroleum, beverages, tobacco and textiles with a hike in tax rates! If he curtails discretionary tax exemptions, and starts to tax leaders (the President, MPs, etc) and others who still bask in the tax-exemption sunshine, then that would be an added bonus for already heavily-taxed Tanzanians and peasant farmers.This sentiment seems to be shared by the Finance Minister, Mr. Mkulo, who according to this news piece, has sent a letter to the IMF detailing the government’s plan to review the tax code for a whole host of sectors:
Among the expected announcements are changes in the mining sector’s tax regime and review of the huge tax exemptions. The Government wants revenue accruing from mining to play a bigger role in national development.
Tax exemptions to government agencies, non-governmental and religious organisations will also be targeted for review.