Technology Increases Tanzania’s Tax Revenue Collection

New coming in from Dodoma indicates that electronic revenue collection system, popularly known as Max –Malipo implemented through mobile phones, bank services and services provided by dozens of tax service centers has increased compliance levels among taxpayers and increased by 27 per cent a month.

Making an official statement in Parliament, the Minister for Finance and Economic Affairs, Dr William Mgimwa said the on-line tax payments go straight to Tanzania Revenue Authority (TRA).

“The innovative system ascertained by Information Technology (IT) entrepreneurs has reduced congestion at office payment desks, addresses tax evasion, curbs cheating and increases efficiency. Taxpayers can now pay taxes and dues promptly at their own convenience,” Mgimwa said.

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According to Tanzania daily news, by the end of last month, 333 Max – Malipo tax service centers were established countrywide. The official statement was in response to a question posed by, the former minister of Education and Vocational Training, Ms Margareth Sitta in parliament on August 27 this year who demanded to know from the ministry of Finance the reliability of the Max-Malipo system.

She narrated how she had gone to one of the Max – Malipo Tax service Centres in Dar Es Salaam, but failed make a payment as the service provider said the system was out of order.

The Speaker of the House, Ms Anne Makinda, then requested an official statement on the matter to be made before the end of the 9th session of the12th National Assembly Meeting.

Dr Mgimwa apologised for the inconvenience caused adding that on theparticular day when Ms Sitta sought services Dar News Limited, theservice provider had experienced technical problems.

“The system has proven to be functional and 600 agents have been registered.

The aim is to employ more than 20,000 people by 2014. Companiestaking advantage of the payment system include DAWASCO, TANESCO, DStvand more. During the Smart Partnership Dialogue Forum held in Dar esSalaam recently, Max – Malipo got recognition from President JakayaKikwete.

Sourced TZ Daily