Property taxation in Tanzania is one among sources that the government can potentially and largely use to widen its tax base and increase revenue collection. Being directly visible to taxpayers, by design it is relatively easier from the taxpayers’ perspective to easily link the collected revenue to improved provision of local services. Thus, property tax has a prospective to act as a basis for bargaining between taxpayers and governments over revenue collection and public spending, hence increasing the tax compliance rate (Ali, Fjeldstad and Katera, 2018).
Despite this revenue potential, the amount collected from it is far less than what could potentially be collected. Essentially, property tax in Tanzania is narrowly applied only to buildings. Land fees, for a small fraction of planned (and often urban based) plots, are collected through a system of annual land rents administered through the Ministry of Lands. Practically, rural property is not taxed under the Local Government Authorities (Rating) (Collection of Property Rates) Regulations of 2019, and further, non-surveyed rural land is not even required to pay land rent. This implies that a large portion of potential revenue from rural property is untapped by the government.
The overall objective of this research project is to identify institutional bottlenecks that limit competitiveness and enterprise development in the productive sectors– and the enabling policy framework to address them effectively. Specifically, the research project will seek to undertake three objectives, namely (i) Analysis of the institutional framework for enterprisedevelopment and competitiveness; (ii) Analysis of […]
How Countries are Performing on the Road to Recovery The deep economic recession triggered by COVID-19 continues to have profound economic and social consequences. Since the outbreak of the pandemic, unemployment rates have rapidly increased in most developing and advanced economies, and poverty rates have begun to rise again, reversing the gains achieved over the […]
Youth unemployment has become the biggest development challenge in Tanzania. Young people have few opportunities to learn skills so as to help them start and sustain their established micro and small enterprises and, therefore, the majority of youth-owned enterprises do not survive beyond one year. This research aimed at assessing the youth skills landscape and […]
Analysis of farm and non-farm occupational choices among youth in rural Tanzania The agricultural sector in rural Tanzania is practiced more by elderly people than by the youth. This study examined the determinants of youth occupational choice between farming and non-farming in rural Tanzania. Specifically, the study intended to establish the trend of farming and […]