The introduction of Value - Added Tax in Tanzania: a plea for another postponement
Patrick K. D. Mugoya (The Institute of Finance Management, Dar es Salaam)
Download Article | Published On 01/12/1996

Abstract

It took four long years of earnest preparations before VAT could be introduced in the UK. Six years of careful examination, deliberations and try outs preceded the introduction of VAT in Korea in. 1977. Comparable experiences can be said to epitomize the advent of VAT in France, Italy and many other countries which successfully operate a value added tax of one sort or another. In Tanzania to the contrary, the VAT gestation period is conceived in terms of only a few months! Worse still there is so far no thorough going, per-determined plan of action for VAT initiation. Yet 1st July 1997 is the day now earmarked for dawning of VAT in Tanzania. In this treaties the basic mechanics of VAT are explained with emphasis on the complicated nature of this indirect tax derivation. Obstacles which a country of Tanzania’s attribute is likely to encounter in effecting VAT, superior as it is; and possible measures to combat the same are manifestly spelt out in the following succinct monograph.

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