PELUM Tanzania launches tax equity project for farmers

The Respondent

By Lilian Kasenene, Morogoro

Despite the agricultural sector contributing 27% to Tanzania's national GDP, many rural farmers remain part of informal systems that hinder their full participation in tax compliance.

Anna Marwa, a Program Officer from PELUM Tanzania, highlighted this challenge during a press briefing following the launch of the Farmers’ Tax Equity Project in Morogoro.

Marwa explained that the project aims to demonstrate how farmers can engage in tax compliance through educational initiatives on equitable taxation, especially targeting women and youth. 

The project not only seeks to increase tax awareness but also to empower women to participate in policy-making processes, guidelines, and laws affecting them at both community and national levels.

“Women, in particular, need to encourage each other to actively participate in tax payment. Our goal is to improve the lives of women and youth—the groups that face the most challenges yet contribute significantly to agricultural development,” Marwa said.

She added that while farmers contribute substantially to the national economy, many are not well-informed about taxes and levies, leaving them unable to participate effectively in tax compliance.

At the village level, many farmers are unfamiliar with various taxes and levies, even though certain fees—such as those applied to crops and raw materials—are designed to support community improvements.

This project aims to raise awareness of fair taxation practices and how farmers can effectively participate in tax compliance.

Tax expert Samuel Mkwatwa emphasized the critical role of agriculture in Tanzania and noted that government planning should prioritize the needs of smallholder farmers, who comprise the majority. He pointed out that women often bear much of the tax burden in many communities.

The project envisions that women and youth will benefit from and actively engage in the tax process, enhancing their understanding and participation.

Speaking during the project’s introductory meeting, the Morogoro District Council Chairperson emphasized the importance of empowering residents, which he believes will promote local development and reduce poverty. 

He noted that land ownership, particularly for women and youth, is vital for economic independence and financial access.

“I always remind residents in this council that assets are not limited to possessions but include land, which can be instrumental in gaining access to financial services and other opportunities,” he said.

He noted that many people overlook the value of land and called for continuous education on its importance.

The Chairperson praised the project, seeing it as a means to foster economic growth for families and communities. 

He recommended focusing on expanding spice crops by distributing diverse seedlings to farmers, which would help preserve natural vegetation and support mountain conservation efforts. 

Additionally, he advocated for establishing demonstration farms to promote economic growth and the use of indigenous seeds, alongside training for decision-makers.

A local farmer from Kungwe village, Shani Kibwende, acknowledged that tax issues have long been a challenge. However, with the knowledge provided by this initiative, he believes they can now participate more confidently in tax payment. 

He urged the government and PELUM Tanzania to continue educating communities on tax matters, especially in rural areas.

The two-year Farmers’ Tax Equity Project focuses on women and youth in the villages of Kikundi, Kungwe, Lukonde, and Vuleni in Tomondo Ward, Morogoro District.

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