Tax reform, complexities and divergence: An experience from zanzibar, Tanzania

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University of Dar es Salaam
Tanzania Island and m mainland forms a single custom territory. In July 1996, there was a major tax system reforms with an introduction of the Tanzania Revenue Authority (TRA) in mainland. In Zanzibar, TRA operations that started in year 2000/2001 resulted in complaints and dissatisfaction among different stakeholders in tax administration. The study was designed to analyze the complexities of tax administration in Zanzibar and economic divergence derived from the harmonization of Union broad based tax (Custom duties, and income taxes) between Tanzania Mainland and Zanzibar. In carrying out this study, tax performance were critically reviewed for the past 10years, where different dimension of share of different taxes on total revenue and GDP were investigated and compared between Tanzania Mainland and Zanzibar. Research mostly used documents review for the case of divergence and semi-structured interview for the complexities, where qualitative data analysis techniques were used in most cases. The study found that, the current system is inefficiency, unequal, not ease and increase distortion which largely caused by multiplicity of tax administration namely ZRB, TRA and local Authorities. This study also found that it is not easy for a single tax administration to cater for interest of the two different directed economies. Finally, we recommended for an alternative administrative system for one authority to commission the other, implementing Memorandum of Understanding between TRA and ZRB, the suggestion given by some key stakeholders of having either of the Authorities contrary to the operating parallel.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HJ4637T34V88)
Tax collection, Tax administration and procedure, Tanzania Revenue Authority, Zanzibar
Vuai, A.H (2007) Tax reform, complexities and divergence: An experience from zanzibar, Tanzania.Master dissertation, University of Dar es Salaam, Dar es Salaam.