The
Tanzanian government of has been told to reduce burden on workers and
instead ensure the tax net covers more members of the business community
and investors across the country. It has been established.
Speaking
to reporters in a news conference in Dar es Salaam on Tuesday this week
Trade Union Congress of Tanzania (TUCTA) President Omary Jumaa said
workers have been contributing 46 percent of the national income while
traders and investors contribute only 24 percent.
Jumaa
revealed when briefing the media on resolutions reached by TUCTA’s
Executive Committee in its meeting held between December 13 and 14 this
year in Morogoro.
TUCTA
President said that the government has been concentrating on the Pay As
You Earn (P.A.Y.E) tax as the major source of its income leaving out
investors and big businessmen who make huge profits in the country but
pay very little tax or none at all.
He said there are some workers whose P.A.Y.E is up to 1m/- just because they are in the system and cannot avoid paying.
The
TUCTA president asked the government to intensify measures to curb
revenues losses occasioned by traders and investors and relieve the
workers from bearing the most burden.
“Workers
are exploited through paying large amounts of taxes while others are
leading luxurious lives and enjoying the country’s resources…the
government should take actions to reduce this burden to the extent where
workers should pay a single digit percentage of their earnings as tax,”
he said.
The
TUCTA boss added that the committee has discovered that the working
environment in the country is still not satisfactory citing difficult
situations in most work places which are yet to be addressed.
He
noted that currently most workers survive on 3000/- to 4000/- per day.
These are those who are paid 70,000/- to 100,000/- per month. This group
comprises the large number of workers who are in private sector.
Jumaa
also touched on the public sector where a civil servant is paid 5,700/-
per day which equals the gross salary of 170,000/- per month which
could not even satisfy the daily needs of the worker.
He
acknowledged the shortage of employment opportunities in the country,
proposing the improvement and concentration of vocational training
colleges as a solution to the problem because many youth shall get
various technical trainings which will enable them employ themselves.
Furthermore,
TUCTA has asked the government to factor a 100 per cent salary increase
in its budget, while reducing workers’ income tax to 11 per cent of
their salaries for the financial year of 2013/2014 in a bid to improve
workers living standards.
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