Improve tax laws to attract investors, EAC states told
Tanzanian authorities have called on East African Community (ECA) member states to improve tax collection methods to attract investors.
The call was made by Permanent Secretary in the Ministry of Finance Natu Mwamba when she opened the 51st forum for Commissioners-General of East African revenue authorities in Tanzania’s commercial hub of Dar es Salaam.
Mwamba urged the EAC revenue authorities to improve tax laws and procedures to attract investors and encourage investment in the East African region.
Alphayo Kidata, the commissioner general for the Tanzania Revenue Authority, urged revenue authorities in the EAC region to unite and work together to bring efficiency in revenue collection, expand the tax base, prevent tax evasion, and provide better services to taxpayers.
The forum brought together commissioners general for revenue authorities from Tanzania, Uganda, Kenya, Rwanda, Burundi, and South Sudan.
The appeal by the PS comes at a time when experts in Kenya have warned that increasing tax rates beyond certain point may reduce tax revenue because higher taxes can discourage economic activity and worsening the cashflow.
The Finance Act 2023, for instance, saw significant tax policyb changes particularly on income and on consumption of goods and services. Other measures included reforms in revenue administration and procedures. The process and the hike in tax rates was met with public outcry and particularly due to its anticipated knock-on effects in worsening the cost of living.
