The analysis of tax exemption benefits in Tanzania

This study examines tax exemptions benefits in Tanzania. The objectives of the study were to examine the extent to which tax exemptions influence Charities and Non- Profit organizations in providing services; to explore the extent to which tax exemptions facilitate the availability of necessary facilities such as machines and firefighting equipment’s; and to assess the extent to which tax exemptions influence level of investment and employment. In this study, data were collected by questionnaire involving 105 respondents. The surveyed data were presented in a tabular form and subjected to content analysis. The study revealed that the importance of tax exemption cannot be underrated. Tax exemptions enable NGOs and other charitable organizations provide services smoothly. Citizens are able to access social services easily, provide reliable water services and various education facilities. It also facilitates the availability of various health facilities such as mosquito nets, vaccination services for various diseases, and enables citizens access medicines such as ARVs for HIV/AIDS. The findings further revealed that tax exemptions influence employment and investment in Tanzania. From the study it is recommended that tax exemptions should be made public and be subjected to parliamentary scrutiny. It should be harmonized with tax collection targets and reviewed frequently to ensure that it is in line with the existing laws and that it does not create room for corruption and evasion. The major limitation of the study is based on data accessibility. Some organizations were not ready to provide information on their income and tax exemptions. The study based only on the information obtained, so it was not possible to provide a wider coverage. However, the study has successfully spot-lighted the critical analysis of the tax exemption benefits in Tanzania.