Kigoma
South MP, David Kafulila (NCCR-Mageuzi) has said Tanzania leads other
East African countries in Pay as You Earn (PAYE) charges.
Contributing to the 2015/2016 Budget estimates debate yesterday, he said the 18 percent charged in Tanzania was an average of total tax and not the 11 percent PAYE.
He said there are groups of workers in the country who
pay up to 30 percent, noting that what other countries in the region charges in PAYE was generally lower than Tanzania but Uganda is similar to Tanzania. Rwanda charges 5.6 per cent, Kenya 6.8, Burundi 10.3, and Uganda 11 per cent, he told MP.
He said that this big tax was a shame to the ruling party whose origin is workers.
The MP said that while the third phase government had put a foundation for solid economic growth, the fourth phase government would have ensured realistic growth to benefit all citizens “but instead it has destroyed it.”
He argued that former president Benjamin Mkapa came to office when national economic growth stood at 4.2 percent and left when it had grown to 6.7 percent, and “has since dropped to 6.4 percent.”
"Mkapa took over leadership of the nation when bank interest rates were 30 to 26 percents by 1995 and had dropped to 14 percent by 2005, but had now shot to 18 percent this year,” he further explained.
In 1995, according to the MP, the rate of inflation rate was 21 percent but had come down to 4 percent in 2005, but it has increased to 5.3 percent. The foreign currency stock was for eight months while it is for four months now.
Kafulila further impressed MPs with an observation that Mkapa took over power when the nation could not get any loan from the development partners as its debt stood at Sh 10 trillion, “which has now risen to Sh 35 trillion.”
Mkapa left power when revenues from internal sources were 14 percent of total national income while currently only 12 is collected, he declared.
"This is a proof that we are taking two steps ahead and ten steps behind and keep on praising ourselves,” he told the House.
Contributing to the 2015/2016 Budget estimates debate yesterday, he said the 18 percent charged in Tanzania was an average of total tax and not the 11 percent PAYE.
He said there are groups of workers in the country who
pay up to 30 percent, noting that what other countries in the region charges in PAYE was generally lower than Tanzania but Uganda is similar to Tanzania. Rwanda charges 5.6 per cent, Kenya 6.8, Burundi 10.3, and Uganda 11 per cent, he told MP.
He said that this big tax was a shame to the ruling party whose origin is workers.
The MP said that while the third phase government had put a foundation for solid economic growth, the fourth phase government would have ensured realistic growth to benefit all citizens “but instead it has destroyed it.”
He argued that former president Benjamin Mkapa came to office when national economic growth stood at 4.2 percent and left when it had grown to 6.7 percent, and “has since dropped to 6.4 percent.”
"Mkapa took over leadership of the nation when bank interest rates were 30 to 26 percents by 1995 and had dropped to 14 percent by 2005, but had now shot to 18 percent this year,” he further explained.
In 1995, according to the MP, the rate of inflation rate was 21 percent but had come down to 4 percent in 2005, but it has increased to 5.3 percent. The foreign currency stock was for eight months while it is for four months now.
Kafulila further impressed MPs with an observation that Mkapa took over power when the nation could not get any loan from the development partners as its debt stood at Sh 10 trillion, “which has now risen to Sh 35 trillion.”
Mkapa left power when revenues from internal sources were 14 percent of total national income while currently only 12 is collected, he declared.
"This is a proof that we are taking two steps ahead and ten steps behind and keep on praising ourselves,” he told the House.
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