Views on Legitimacy of Tax Authorities’ Mandate and Attitude towards Taxes –
Results from Afro barometer Round 5 Survey in Tanzania – REPOA
By Lucy Mushi
Must people pay Taxes for country’s development to happen? That’s the big
question that hovers in many people’s minds.
There are several types of taxes one should pay to the government, like
Value Added Tax (VAT), Income Tax and all other fees that are paid to local
authorities.
According to a recent afro barometer survey that was done, ‘7 out of 10
Tanzanians agree that tax authorities have the right to make people pay
taxes.’
The survey that was done throughout the country shows in overall, higher
number of people agreed with the fact that we should pay tax to the
government.
However, the results differ for people from rural area and urban area;
whereby in rural area, a higher number – more than 55% don’t see the need
for the government to impose tax on its people, and think they have no
obligation to pay VAT, *though* they unknowingly pay it. They argue that
the government can find ways and resources for development from other
sources without having to tax its people.
The survey that was conducted in both mainland and Zanzibar indicates that
the islanders from Zanzibar are more enthusiastic in paying tax than the
people in mainland.
Every person earning money is obliged to pay income tax to the government –
from the employer, the employee and/or businessperson.
What makes people turn away their backs on taxation?
There are several challenges that face both the government and the citizens
in effecting taxation.
The main challenge is that people don’t have enough access to tax
information and understanding of tax policies. According to the findings,
people are misinformed about VAT and income tax policies.
The report shows that 72% of the people interviewed say it is difficult to
know about the taxes and other fees they are supposed to pay to the
government. This is a big hindrance to peoples’ understanding and
compliance to taxation.
As a result, most people say they would avoid tax if given a chance because:
· The taxes are too high
· People can’t afford to pay
· The poor services they receive from the government and believe
that government wastes tax money.
The strength of tax enforcement and integrity of tax officials is also in
question. Comparing with the previous surveys done (in 2005), the study
shows there is more weakness in enforcing tax to people, and also integrity
of tax officials, as corruption perception is much higher in 2012.
“We urge the tax authorities to be transparent, forthright, foreseeable and
accessible for everyone.” Insisted some of interviewees. “Tax authorities
should also preserve their integrity by cleaning up ranks of corrupt
officials who are damaging their professional image.”
In general, the survey results indicates that many people are becoming
aware of tax authorities mandate and most are willing to comply if the
mentioned shortcomings are met.
The Afro barometer (AB) is a series of public opinion surveys that measure
public attitudes towards democracy, governance, the economy, leadership,
identity and other related issues.
It’s an independent, non-partisan African based network of researchers that
covers upto 35 countries across Africa. In Tanzania, it is coordinated and
conducted by Policy Research Development – REPOA