Recognizing the crucial role that domestic revenue mobilisation plays in financing sustainable development, governments in developing countries have increased interest in taxing informal businesses to increase domestic revenue collections (Joshi & Ayee, 2008). However, the sector is often characterized by unregistered businesses and poor tax administrative systems, resulting in a substantially reduced tax basis.
The sector forms a large proportion of the economy in both transition and low-income countries. In Africa, for instance, it is recorded that every 8 out of 10 people work informally (ILO, 2018)1. According to Medina et al., (2016), the segment of informal economy in Sub-Saharan Africa (SSA) remains among the largest in the world, even though this share has been gradually declining, as seems to be the case globally. There is significant heterogeneity in the size of informality in SSA, ranging from a low of 20 to 25 percent in Mauritius, South Africa, and Namibia to a high of 50 to 65 percent in Benin, Tanzania, and Nigeria (Medina, et al., 2016).
Looking back on revenue collection from the informal street vendors, in 1983, Dar es Salaam city introduced “Nguvu Kazi” minor license 2 and later abolished in 2004. In July 2000, the Tanzania Revenue Authority (TRA) introduced a new simplified tax schedule for small taxpayers (as well as simplified balance sheets and tax declaration forms), as part of a drive to make it easier for informal sector operators to formalize and start paying taxes.
The Internet has the potential to improve public administration, service delivery, and citizen engagement (Castells, 2009; Chadwick, 2006, 2013). In the early 2000s, the Tanzania government adopted online government information provision and established the technical standards and guidelines for government websites in 2014 (United Republic of Tanzania, 2014). E-information stands for provision of information via […]
Since independence in 1961, Tanzania declared war against three social enemies, which are ignorance, poverty, and diseases. The fight against ignorance was to succeed by giving special attention to the education sector. Thus, throughout the history of Tanzania, education is regarded a key priority for development that impacts the lives of people (Rajani & Omondi, […]
Good health is indispensable towards promoting the well-being of people as well as the nation’s development (World Bank, 2016). Tanzania like many other developing countries has marked health as a priority matter that needs much attention – making the country committed to goal 3 of the Sustainable Development Goals of 2030 (Lee & Tarimo, 2018). […]
Tanzania has achieved sustained rates of economic growth for the past ten years and is moving towards middle income status. Maintaining these gains while ensuring that development is inclusive is a core objective of the second National Five-Year Development Plan which places industrialisation as the key pillar of national development strategy.