TZ-Tax Administration (FY99)

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The Country Assistance Strategy (CAS) recognizes that macroeconomic stability is critical for a sustained growth in Tanzania, and specifies the need for strengthening tax administration. Revenue performance will be improved and domestic resources increased on a sustainable basis to finance budgetary needs, through the support of the Tax Administration Project. The main components will: a) improve the legal system to enact laws and regulations in taxation, and will introduce regulatory taxpayer frameworks, to further establish appeals mechanisms; b) increase the number of registered taxpayers contributing to a broadened tax base, thus creating a rationalization for deductions, exemptions and concessions granted by tax laws, to further identify sources of revenue for tax base expansion; c) strengthen the Tanzania Revenue Authority (TRA), through a re-engineering process, computerization of three revenue departments, and improve the tax arrears recovery and the control of tax evasion; d) improve the administrative infrastructure, with the rehabilitation/construction of needed facilities; and, e) include a Project Preparation Facility to finance project coordination and implementation.