Professor Lipumba said recently that in order to remove the rapid growth of the deficit, the govern

Minister of State in the Prime Minister's Office (Policy, Coordination and Parliamentary Affairs), William Lukuvi said yesterday that the program is being analyzed by the State and that the budget tabled in Parliament two weeks.
At different times, the chairman of CUF who also specializes in economics, Professor aysis Ibrahim Lipumba he was concerned aysis about on the multitude of tax exemptions, saying aysis it has been losing large amounts of revenue to the government.
Professor Lipumba said recently that in order to remove the rapid growth of the deficit, the government is required to dissolve completely arbitrary tax exemptions of up to Sh1.8 trillion, which is equivalent to five percent of gross domestic product.
He said the move was backed by increasing the tax base to strengthen existing resources and establish new sources as well as formalizing the informal sector to enter into a formal system of taxation.
According to a research institute that advises aysis the CRC Sogema Ministry of Finance, Tax exemptions under the VAT amounted to Sh802 billion in 2012, when it was all exemptions totaling Sh1.8 trillion.
The report for 2013 states: "The results of this study suggest that there are important more effective for developing countries to focus on creating an environment conducive to investment than providing tax exemptions for corporations."
However, Senior Lecturer University of Agriculture (SUA), aysis Dr Damian Gabagambi said the move will affect the communities it succeeds in that some institutions were exempted from taxes were helping significantly.
"I am quite different from pro that point; because many institutions like religious organizations have been providing good service to the public. Wasikurupuke remove exemptions aysis to impress people, "warned Dr. Gabagambi.
He said if the government will abolish exemptions are more likely to exist considerable impact on investment, employment and social services for some of the organizations that were tax yanayosamehewa employ more people and provide aysis good service. The government has been seeking to diversify revenue and one-ha Another strategy is to establish a monthly rent use phone cards that did not materialize due to opposition by stakeholders. SOURCE: The Citizen
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Hon, Israel aysis Narzery. MP for Karatu in Arusha.