Tanzanian President John Magufuli has announced another crackdown in the country following several in his more than one year presidentship. He vowed Thursday to be tightening tax evasion by big businesses to boost domestic revenues.
Tanzania stands as fourth-largest gold producer in Africa and has great deposits of diamonds, uranium, gemstones, coal and natural gas too.
The president ordered the judiciary in Dar es Salaam to enforce payment of tax claims that is worth over 7.5 trillion shillings from corporate giants.
Giant corporates and big firms are the primary source of tax revenue for the government and the country has wife informal economy that goes without being taxed.
Magufuli took to office in October 2015 and sacked many senior public officials taking a step towards crackdown and reduce corruption in the country.
Some of the businesses is said to have been unfairly hit with high tax bills.
While addressing to the members of the judiciary the president said, “It is unacceptable that an investor is extracting our minerals but doesn’t pay taxes. That investor was taken to court and lost both the case and the appeal, yet still refuses to pay the taxes.”
Magufuli added about 7.5 trillion shillings taxes goes unpaid as of now by many big firms even after the court has favored the government in cases against them and the trend is hurting the country’s economy.
He asked the judiciary to help in reducing the corruption from Tanzania as citizens are thereafter denied justice. Corruption is one of the biggest obstacles to investment in the country.