This policy brief explores on the Performance of Tax Revenues in Tanzania. The brief has it that the performance of Tanzania’s Tax revenue collection is below the recorded averages in Sub- Saharan Africa, SADC, and East Africa. Income tax and VAT jointly contribute around two-thirds of the country’s tax revenues. It also explores that the tax regime in Tanzania has been marginally buoyant (1.08) in the last 20 years. However, tax buoyancy has declined over the period, and, that tax buoyancy has varied across the tax categories, with income tax performing better, followed by excise duties. Both sources provide short-term stability, as well as long-term sustainability to the government budget. It also underscores that the VAT suffers from regressivity and a declining tax base, and import duties also suffer from a declining tax base. READ ON…
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