The Government is seeking deeper cooperation with global professional services firm KPMG to improve tax policy, revenue administration and the wider tax system as Tanzania moves to strengthen domestic revenue mobilisation under Development Vision 2050.
The partnership is expected to focus on evidence-based tax reforms aimed at improving the efficiency of revenue collection while creating a tax environment that supports investment and economic activity.
Finance Minister Ambassador Khamis Mussa Omar said the Government would continue working with KPMG on tax policy, revenue management and technical reforms, arguing that international expertise could help improve the quality of decisions affecting taxpayers and businesses.
He made the remarks in Dar es Salaam after meeting KPMG East Africa Managing Director Alexander Njombe and other senior officials from the firm.
“Government appreciates the advice we receive from KPMG, particularly on policy issues, because it gives us a broader perspective and evidence that can help improve our decisions,” Ambassador Omar said.
The minister said cooperation with KPMG covers policy dialogue, technical and professional advice, as well as reforms to the tax system.
He said evidence and data were increasingly important in designing tax measures, particularly as the Government seeks to balance the need for higher revenue with the need to maintain an environment in which businesses can operate and expand.
Balancing revenue and business
Ambassador Omar said Tanzania could not rely solely on government institutions when undertaking tax reforms, arguing that input from the private sector and international experts was necessary to understand the practical impact of tax policies.
“Government cannot carry out tax reforms by locking itself within its institutions. We need views and experience from the private sector and institutions with experience in different countries,” he said.
KPMG’s presence across Africa, he added, gives Tanzania an opportunity to compare its tax system with those of other economies and draw lessons from reforms implemented elsewhere.
The issue is particularly important as the Government seeks to expand domestic revenue without placing excessive pressure on compliant taxpayers or discouraging private investment.
For businesses, predictable and efficient tax administration can reduce compliance costs, improve certainty and support investment decisions. For the Government, stronger administration and a broader tax base could provide additional resources to finance public services and development projects.
Technology, data in focus
Mr Njombe said KPMG was ready to use its regional and global network to provide Tanzania with expertise and international experience that could support investment and economic development.
He said areas such as artificial intelligence, technology, data-driven decision-making and operational efficiency could play a greater role in improving government systems.
KPMG could also provide specialised expertise in sectors including energy and natural resources, he said.
The use of technology and data in tax administration could potentially improve the identification of economic activity, reduce leakages and make compliance more efficient, while limiting unnecessary administrative burdens on taxpayers.
However, the effectiveness of the reforms will ultimately depend on how they are implemented, including the predictability of tax rules, quality of administration and the extent to which taxpayers and businesses are consulted.
The Government has linked the reforms to the implementation of Development Vision 2050, which seeks to build a competitive economy capable of creating jobs, expanding opportunities and improving living standards.
“Development Vision 2050 belongs to everyone. We cannot say the Government should do everything alone when the private sector conducts a large share of economic activities,” Ambassador Omar said.
“We need to sit together, consult and build things that will help the country achieve the goals we have set.”
The meeting was attended by Finance Deputy Permanent Secretary Elijah Mwandumbya, KPMG Tax Partner Fabiola Ssebuyoya, Assurance Partner Adolph Boyo and senior officials from the Ministry of Finance.