The Parliamentary Public Accounts Committee (PAC) in Tanzania gave a ninety days ultimatum to the national revenue body to recover the all the moneys lost through dubious deals.
The amount totals to over Tsh 1.5 billion which Tanzania Revenue Authority allegedly lost in unclear tax exemption and tax holiday deals with major companies and institutions, including a gold mine, Geita.
The development came after officials from the revenue body were summoned before PAC to explain the irregularities that had surrounded the institution in the previous year.
Tanzania PAC Deputy Chairman, Aeshi Hilal commended TRA for “a good job” during the grilling session but later said it was prudent to address its weakest areas. This he said is a way of strengthening institutional competence and to curb the rampant corruption threats.
“we commend the good job done by TRA, but we want you to work on all areas that have weaknesses resulting form the loss of government revenue,” he said
In January 2016, TRA reported that revenue collection in the country had hit Tsh 1.4 Trillion a thing which boosted government confidence to fund national projects domestically including free education and health.
TRA commissioner Alphayo Kidata said the revenue was realized as a result of the commitment from the policy maker to ensure the domestic collection targets are met.
“This is happening because leaders of our country have decided that tax must be paid. it is the greatest amount of tax to be collected since the TRA establishment,” Kidata said in January
Tanzania is currently under a strict audit and supervision of public institutions to clear the corruption menace that had threatened public service delivery in the past.
The committee also direct the tax body to increase tax collection as a way of recovering a tune of 29 billion lost in false declarations in the previous years.
1 USD = Tshs 2193.25