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.
Structural transformation is the process of transition of an economy from low productivity and labour-intensive activities or sectors into higher productivity and capital or skill intensive activities or sectors. Literature has shown productivity in the modern sectors, typically manufacturing and services, to be the driving force for transformation with productivity differences often associated with the […]
Industrializing Agriculture in a Changing Climate: Effects of Weather Extremes on Rice Production in Tanzania
This is the third of a three-part series of policy briefs presenting findings of the main research report “Institutional and Operational Bottlenecks in Rice Value Chains and Export in Tanzania: The Case of Mbeya Rice Producers and Traders.” Through the EU-ACP TradeCom II Programme, the study is part of the “Targeted support to strengthen capacity […]
The effects of institutional bottlenecks on
enterprise development and competitiveness in
productive sectors in Tanzania
This policy brief flags areas of crucial policy concerns in the context of the prevailing legal and regulatory framework for enterprise development and competitiveness. It draws on analyses and findings from REPOA’s Research Project on Institutional Analysis of Enterprise Development and Competitiveness (EDC) in Tanzania. The research draws on analyses of primary and secondary data […]
Uwezeshaji wa Wananawake Kwenye Uzalishaji,Utafutaji wa Kipato, Umiliki wa Raslimali na Uongozi KupitiaMpango wa Kukuza Uwezo wa Kaya Maskini (PSSN)
Kitabu kinachohusu Uwezeshaji wa Wanawake Tanzania kama sehemu ya Sera za Kudumisha Ustawi wa Jamii (Empowering Women in Tanzania in the Contexts of Contemporary Social Policy) kimetolewa na REPOA kwa madhumuni ya kutoa uchambuzi wa kisera, matukio na taasisi ambazo ni sehemu ya mihimili ya jitihada za serikali za kuwawezesha wanawake Tanzania. Dokezo hili linatoa […]