The International Monetary Fund (IMF) says Tanzania’s economy has rebounded and the projected growth is estimated at six per cent in 2020.
This would be an improvement over the four percent growth the Fund had projected for the country last year.
However, this latest IMF projection is still below the seven per cent growth that is currently quoted in government reports.
The Washington, DC-based IMF also said yesterday that Tanzania had made prudent monetary and fiscal policies in recent times.
This was after the development partner completed its 2020 Article IV Mission to the country on Wednesday this week. The Mission noted some progress in private investment and jobs creation. However, it stressed that there is a pressing need for targeted economic reforms to be implemented soonest.
The report also emphasized urgency in adhering to efficient means of tax collection and control, notably through the use of risk-based audits.
“This would ensure better compliance and timely payment of tax refunds, as well as improve companies’ cash flows,” he said in a statement posted on IMF’s website.
The report further says that there is a significant and immediate revenue potential from the expansion in the number of taxpayers, together with improvements in tax administration and compliance in line with established protocols and regulations.
The report also suggests implementation of planned measures to clear the backlog of expenditure arrears, account for them on a timely basis – and prevent the accumulation of new ones.
This, the report says, will be essential to improve businesses’ cash flows, ensure that bank loans are repaid on time, and sustain economic activity.