The sudden removal of Tanzania Revenue Authority (TRA) Commissioner General Alphayo Kidata has stirred discussions amidst protests from foreign investors and local traders over tax measures. President Samia Suluhu Hassan appointed Zanzibar revenue chief Yusuph Juma Mwenda as the new TRA boss, replacing Mr. Kidata who was moved to an advisory role in State House. The move coincided with complaints from the diplomatic corps regarding alleged unfair taxation of foreign direct investment in Tanzania, prompting the government to address the issues. The envoys raised concerns over unproven tax demands, extraordinary tax bills without legal basis, and the rejection of tax concession agreements, leading to a freeze of accounts and assets. The government responded by promising to address the grievances and ensure a fair tax system for all investors.
Last week, traders in urban markets went on strike demanding transparency in tax administration, a recurring issue unresolved since a previous strike in 2021. The government engaged in talks to find solutions, including setting up an efficient tax assessment system. Key officials like Prime Minister Kassim Majaliwa and Finance Minister Mwigulu Nchemba led the discussions, aiming to ease tensions. Amidst these developments, Mr. Kidata’s history in the civil service under different administrations adds complexity to the situation. His tenure at TRA saw a notable increase in tax collections, reflecting the agency’s performance in revenue generation.
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