Tanzania Economic Update, July 2015 : Why Should Tanzanians Pay Taxes? The Unavoidable Need to Finance Economic Development

This seventh economic update goes to the heart of one of the main challenges faced by Tanzania: how can the country finance its development? This is a fundamental question when aid is coming down as a proportion of a growing GDP, and as access to f...

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Bibliographic Details
Main Author:	World Bank Group
Format:	Report
Language:	English en_US
Published:	Washington, DC 2015
Subjects:	TAX INCENTIVES LIVING STANDARDS TARIFFS CONTINGENT LIABILITIES MONETARY POLICY DEFICIT REGULATORY FRAMEWORK GOVERNMENT EXPENDITURES ACCOUNTING CHECKS LOCAL ECONOMY REAL INTEREST RATES MORAL OBLIGATION STOCK VALUATION INTEREST MONEY SUPPLY INTEREST RATE PROPERTY RIGHTS OPTION EXCHANGE GOVERNMENT REVENUES LOCAL GOVERNMENTS ECONOMIC DEVELOPMENTS BALANCE OF PAYMENTS RESERVE REQUIREMENTS LIQUIDITY DEBT MANAGEMENT DEVELOPING COUNTRIES TAX COLLECTION REAL INTEREST EXPORTERS REVENUES FISCAL POLICY BONDS CAPACITY BUILDING ISSUANCE OF BONDS DEBT SERVICING COSTS TAX PUBLIC BORROWING INCOME TAX DEBT ISSUANCE RESERVE INTERNATIONAL TRANSACTIONS INFLATION PENSION DEVELOPING COUNTRY INSTRUMENTS DEBT LEVEL CREDIBILITY BUDGET FISCAL CAPACITY CENTRAL BANK CONVERSION FOREIGN MARKETS TRADE BALANCE OIL PRICES LEVEL OF RISK AGRICULTURAL COMMODITIES CURRENCY TELECOMMUNICATIONS CAPITAL GAINS PUBLIC FUNDS CORPORATE TAX RATES PRICE VOLATILITY ELECTRONIC PAYMENT SYSTEMS CONTRACTS EXCHANGE RATES TAX EXEMPTIONS RECURRENT EXPENDITURES INTEREST RATES MONETARY FUND MARKETS DEBT PRIVATE INVESTMENT LOCAL GOVERNMENT RETURN FINANCIAL FLOWS INFLATION RATE PUBLIC FINANCE INCOME LEVELS LOANS DIRECT INVESTMENT RESERVES PRIVATE CAPITAL DEBT SERVICE GROSS DOMESTIC PRODUCT PENSION FUNDS CASH TRANSFERS DOMESTIC BONDS COMMODITY PRICE FINANCE BANK POLICY PUBLIC INVESTMENT TAXES FISCAL DEFICIT INVESTMENT DECISIONS EXPENDITURE GOVERNMENT BUDGETS TRANSACTIONS INTERNATIONAL STANDARDS POTENTIAL INVESTORS EQUITY INCOME TAXES TRANSACTION INVESTORS HUMAN CAPITAL GOOD TAX RATE GOVERNMENT BUDGET DEBT-SERVICE TRANSPARENCY COMPLIANCE COSTS TURNOVER FUTURE FOREIGN DIRECT INVESTMENT NATIONAL DEBT BUDGETS TAX REGIMES GOVERNMENT EXPENDITURE INVESTMENT PROJECTS CONTRACT DISBURSEMENTS EXPENDITURES PROPERTY ISSUANCE PROPERTIES CURRENT ACCOUNT DEFICIT TAX RATES SHARES ACCESS TO LOANS REAL EXCHANGE RATE TRANSACTION COSTS MARKET LOCAL CURRENCY TRADE LIBERALIZATION MONETARY POLICIES PUBLIC DEBT EXPORTER TREASURY LEVY CURRENCIES ECONOMIC DEVELOPMENT TRADE SECTORS INTERESTS GOODS MARKET SHARE STOCKS INVESTMENT COMMERCIAL BANKS HUMAN RESOURCES SHARE TAX SYSTEM POVERTY TARIFF PRIVATE INVESTORS DECENTRALIZATION REVENUE MOBILE PHONES DEVELOPMENT FINANCE TAX POLICY LEVIES JUSTICE SYSTEM INVESTMENTS TAX TREATMENT LENDING CREDIT GROWTH PENSION FUND LEVEL OF DEBT PUBLIC STOCK EXCHANGE RATE DEBT SERVICING PUBLIC SPENDING PAYMENT SYSTEMS LIABILITIES COMMODITY PRICES ARREARS INTERNATIONAL MARKETS SMALL BUSINESSES GUARANTEE DEVELOPMENT BANK INCOME LEVEL REAL PROPERTY TAX OBLIGATIONS
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24695362/tanzania-economic-update-tanzanians-pay-taxes-unavoidable-need-finance-economic-development http://hdl.handle.net/10986/22331

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Summary:	This seventh economic update goes to the heart of one of the main challenges faced by Tanzania: how can the country finance its development? This is a fundamental question when aid is coming down as a proportion of a growing GDP, and as access to financial markets remains limited. Oneoption would be to rely more on the private sector to deliver education, health, roads, ports and electricity. This is possible as demonstrated by many such experiences around the world, and therefore this approach needs to be one important part of the solution to finance development. The argument presented in this economic update is that higher tax revenues will come only if a comprehensive approach is adopted. The tax system has to be affordable, fair, simple, and transparent. The government also has to be accountable for the money it is receiving. It is onlywhen these basic conditions are met that tax compliance will increase. Because a strong social contract between the State and its citizens is not yet sufficiently in place in Tanzania, a number of suggestions are proposed in the update, with the objective of stimulating debate on possibleapproaches to increase tax revenue.

Tanzania Economic Update, July 2015 : Why Should Tanzanians Pay Taxes? The Unavoidable Need to Finance Economic Development

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