Speculation is on the rise following the sudden dismissal of Tanzania Revenue Authority (TRA) Commissioner General Alphayo Kidata, amidst growing discontent from foreign investors and local traders over questionable tax practices. President Samia Suluhu Hassan appointed Zanzibar revenue chief Yusuph Juma Mwenda as the new TRA boss, moving Mr. Kidata to an unspecified advisory role in State House. This move came ahead of discussions with foreign envoys who raised concerns about unfair taxation of foreign direct investments in Tanzania.
Traders in urban markets went on strike to demand a more transparent tax system to address long-standing issues with TRA compliance inspectors. The strike in Dar es Salaam and other markets led to promises of solutions from the government, including setting up a more efficient taxation system. Mr. Kidata’s history in the civil service, marked by highs and lows, adds intrigue to his abrupt removal.
Despite increases in tax collections during his second term, Mr. Kidata’s departure raises questions about the future of tax administration in Tanzania.