Zitto na Demokrasia

Zitto na Demokrasia

Posts Tagged ‘Tanzania Revenue Authority

Tanzanian Mining companies migrating to the Mining Act 2010 and a Lusaka revolution

with one comment

Tanzanian Mining companies migrating to the Mining Act 2010 and a Lusaka revolution

Judge Mark Bomani (Bomani Commission)

Judge Mark Bomani (Bomani Commission)

This weekend Tanzanians were informed (viaThe East African- Tanzania seals new tax deal with mining firms) of the decision reached by ministry of energy and minerals and one of the giant mining company in the country, Geita Gold Mine, that new royalty rates will be applicable. The agreement includes scrapping of the 15% provision on the unredeemed capital expenditure allowance given to mining companies through their contracts. This provision was a fundamental reason why mining companies were not paying corporate tax since they started operation. It was as well one of the argument raised in Buzwagi motion during 9th Parliament. I welcome this move as it is the implementation of the recommendations of Bomani mining review commission.

The new royalty rates of 4% gross value from 3% net back value was supposed to be implemented since the new mining legislation was enacted in 2010. Mining companies resisted to migrate to new law although they were paying new rates in protest. Amending the mineral development agreements (MDAs) to effect the new rates including service levy to local government authorities is a positive step forward.

However, as a country we still generate peanuts from mining sector. With mineral exports valuing US$ 1.7 billions, revenues ( royalty, taxes and other levies) to government coffers averages only $150 millions. Largest source of revenues are royalty and employees taxes ( PAYE). We must think outside the box and introduce fiscal measures that maximizes government revenues without negatively impacting investments. Scrapping abuse prone corporation tax is one of the way to go. Zambia was thinking of this idea by introducing higher royalty rates.

Royalty, which is tax deductables, charged on gross production assures governments of revenues and easier to monitor any abuses. It is not subject to excessive tax planning measures done by multinationals and addresses the challenge of base erosion and profit shifting. Companies will be forced to cut down unnecessary costs and completely ends habit of inflating investments expenditures in order to declare losses.

Zambia, knowingly or unknowingly, might have started a revolution never to stop. A new model of taxing extractive sector in the offing. This is the beginning of the end of the corporate tax regime in extractive industry and it is a welcome move.

PAC imeanza uchunguzi kuhusu ukwepaji kodi unaofanywa na makampuni ya Kimataifa

leave a comment »

PAC imeanza uchunguzi kuhusu ukwepaji kodi unaofanywa na makampuni ya kimataifa.

Leo tarehe 30 Machi 2014, kamati ya BUNGE ya PAC imeanza rasmi uchunguzi kuhusu ukubwa wa tatizo la ukwepaji kodi na utoroshwaji wa fedha unaofanywa na makampuni ya kimataifa ( multinational corporations). Uchunguzi huu unatokana azimio la umoja wa kamati za PAC za nchi za SADCOPAC lilioamuliwa Arusha, Tanzania mwezi Septemba mwaka 2013 ( Azimio lilisomeka – PACs should initiate investigations on the extent of tax avoidance/evasion and illicit money transfer in their jurisdiction).

Leo PAC imekutana na Mamlaka ya Mapato Tanzania (TRA), Benki Kuu ya Tanzania (BOT), Kitengo cha Fedha Haramu ( FIU) na Mdhibiti na Mkaguzi Mkuu wa Hesabu za Serikali (CAG) kwa ajili ya majadiliano ya awali kuhusu uchunguzi huo.

Kamati imeelezwa kuwa tatizo la ukwepaji kodi ni kubwa sana na linagusa sekta zote. TRA imeieleza kamati mifano mbalimbali kwa kila sekta namna gani Taifa linapoteza kodi. Njia zinazotumika ni pamoja na udanganyifu katika mikopo, udanganyifu katika bei za mauzo ya bidhaa zinazouzwa nje na mikataba ya biashara miongoni mwa makampuni yanayohusiana. Uchunguzi uliofanywa na TRA kwa kampuni mojawapo wa uchimbaji madini unaonyesha kuwa kampuni hiyo iliyotangaza hasara mwaka 2011 iligundulika kuwa kumbe ilipata faida ya dola za kimarekani 327 milioni.

Sekta ya Utalii na mahoteli inaonyesha kugubikwa kiasi kikubwa na ukwepaji kodi kwa kampuni katika sekta hiyo kutumia mikataba na makampuni yanayohusiana yaliyokwenye Tax Havens ambayo inahamisha mapato mengi kwenda offshore (profit shifting and base erosion).
Kamati imeelezwa na BoT kuwa hivi sasa kuna uchunguzi maalumu unaoendelea kuhusu ‘illicit financial transfer’ kutoka Tanzania.

Pia ameeleza kwamba hatua zimeanza kuchukuliwa kufunga akaunti za makampuni ya madini yaliyopo offshore kwani sababu za makampuni hayo kuwa akaunti nje hazina msingi tena. Hata hivyo changamoto kubwa ni mikataba waliyoingia na Serikali ambayo inawaruhusu kufungua akaunti offshore na kuweka mapato yao yote ya mauzo ya madini huko.

Utoroshaji wa fedha kutoka Tanzania ni changamoto kubwa sana ya maendeleo ya Tanzania katika kupambana na umasikini. Utoroshwaji umekuwa ukikua mwaka hadi mwaka. Taarifa ya benki ya maendeleo Afrika inaonyesha kuwa mwaka 2010 peke yake Tanzania zilitoroshwa jumla ya dola za kimarekani bilioni 1.3 ambazo zilikuwa sawa na asilimia 5 ya Pato la Taifa (GDP) na zaidi ya asilimia 20 ya mapato ya ndani ya TRA.

Kamati ya PAC itaendesha uchunguzi na kuandaa taarifa itakayowasilishwa bungeni kwa hatua zaidi. Hii itakuwa ni mara ya kwanza kwa BUNGE la Tanzania kuendesha uchunguzi wa aina hii. Pia Tanzania imekuwa nchi ya kwanza katika eneo la SADC kutekeleza azimio hili. Nchini Uingereza kamati ya PAC ya BUNGE la uingereza iliendesha uchunguzi kama huu na makampuni makubwa kama google, Amazon na Starbucks waligunduliwa kukwepa kodi nchini humo. Kwa nchi za Afrika sekta yenye kutorosha fedha na kukwepa kodi kwa wingi ni sekta ya madini, mafuta na gesi. Mwaka 2013 mwezi Desemba kamati ya PAC Tanzania ilikutana na PAC – UK ili kupata uzoefu wa namna ya kuendesha uchunguzi wa aina hii.

Zitto Kabwe, MB
Mwenyekiti, PAC
Dodoma
30-03-2014

RELATED STORY: Africa’s $200 billion kept in foreign banks  (‘Rich beggar’ paradox that is Africa’s forex reserves)

Courtesy: THE EAST AFRICAN