Following the launch of a tax modernisation programme to narrow the gap in tax collection by Tanzania Revenue Authority (TRA), Tanzania and Norway have agreed to start cooperating on tax-related issues.
The programme launched recently in Dar es Salaam with the signing of an agreement between the Norwegian Deputy Minister for Foreign Affairs, Tone Skogen, and Deputy Minister for Finance, Dr Ashatu Kijazi.
“Tanzania can achieve its dream of having an independent national budget financed by the tax income collected within the country and do away with foreign aid. This new programmme will pave the way for such a situation,” noted Kijazi.
The agreement results to Norwegian government contribute $5million to finance the fourth Corporate Plan in order to facilitate TRA initiatives in increasing national tax revenue and address the potential gaps in the existing system in the new government.
The programme aims at first leading to the expansion of Tanzania tax base which will reduce the tax burden to few people and make it equally distributed.
Tanzania and Norway collaboration improved in financial skills expertise from 2012 with the agreement between TRA and Norwegian Ministry of Foreign Affairs and later institutional corporation between TRA and Norwegian Tax Administration .