The mining sectors in Tanzania: legal appraisal of fiscal incentives and their management

This is a study of the fiscal regime that is currently applicable in the mining sector in Tanzania. The primary aim is to examine that fiscal regime for the purpose of, on the one hand, assessing the dual effects of increasing Government revenue and, on the other hand, creating an attractive environment for domestic and foreign investment in the sector. The study is divided into five main parts. The first part is an introduction that is comprised of background to the problem, statement of the problem, hypotheses, objectives of the study, significance of the study, literature review and research methodology. Chapter one defines the meaning of an incentive and examines the most common types of incentives in the mining sector and discusses the rationale for fiscal incentives and their influence in attracting and retaining investments in the mining sector. Chapter two describes the current tax system as it applies to the mining sector. The chapter contains an appraisal of taxes and fees applicable in the sector and provides economic analyses and reviews trends of incentives available to the mining sector. Chapter three sets out a comparative analysis of fiscal regimes in selected African countries. Taxes applicable in Tanzania are outlined and compared to taxes in other African countries. The fifth and last part of this study contains the conclusion and recommendations. That part sums up the findings of the study and carries recommendations to improve fiscal policy, legislation and tax administration in the mining sector