The One Billion Dollar Question: How Can Tanzania Stop Losing So Much Tax Revenue

Report for Norwegian Church Aid and Churches in Tanzania (June 2012)

This report analyses Tanzania’s tax policies and how much revenue the country is losing from tax evasion, capital flight and tax incentives. It shows that, every year, a vast amount of potential tax revenue that could be used to reduce poverty is failing to end up in the government treasury; much is simply leaving the country. Illicit financial flows from Tanzania – which entail the disguised expatriation of money abroad, usually to developed countries or tax havens – range from $94 – 660 million a year. In total, and including further revenue losses from tax incentives and various forms of tax evasion, the report estimates that Tanzania has in recent years been losing revenues ranging from $847 million – $1.29 billion (TShs 1.35 – 2.05 trillion) a year – thus the median figure is $1.07 billion (TShs 1.7 trillion).

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