An Economic Analysis of Tanzania's Tax Performance Experiences since the 1973 Tax Act

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Periodical article

Title:	An Economic Analysis of Tanzania's Tax Performance Experiences since the 1973 Tax Act
Author:	Mtatifikolo, Fidelis P.
Year:	1990
Periodical:	Eastern Africa Economic Review
Volume:	6
Issue:	2
Pages:	55-67
Language:	English
Notes:	biblio. refs., ills.
Geographic terms:	Tanzania East Africa
Subjects:	taxation fiscal law Economics and Trade Economics, Commerce Tax systems Tanzania. Income Tax Act Tax revenues
Abstract:	This study concerns tax system performance in Tanzania for the period since the major tax reforms of 1973-1974, ending with the years 1984-1985. It reveals that over the period there has been a clear shift towards reliance on taxes and tax practices that are regressive in nature; that tax concentration has risen to dangerous levels; and that tax evasion is high in the business and informal sectors while overtaxation of the wage earning group is evident and serious. This contrasts with studies done in the mid-1970s dealing with experiences for the period of the early 1960s to the mid-1970s where overall progressivity and tax equity were confirmed. Tax elasticities and tax buoyancies are computed and examined. It is concluded that improvements in the tax system for revenue and income policy purposes lie in measures that reform the tax structure and enhance tax bases. Bibliogr., notes, ref.