Tax is a block on which governments rely to finance development. Implicitly there is a social contract that exists between the citizens who pay the taxes and the government as a recipient, which spends on their behalf. Yet in reality there appears to be a gap and a none mutual accountability.

Taxes must be fair and just. There is weak citizen engagement in fiscal governance. Most citizens view fiscal governance and tax matters as complex, unfair and exploitative. They least see the relationship between taxation and development and this factor has led to low tax compliance amongst citizens. Multiple studies and surveys by Afro Barometer Survey and others reveal that citizens are willing to pay slightly more taxes if the quality of social services would be improved. Citizen apathy against taxation and affinity to evasion and avoidance is increased, with a perception that the fiscal policies are exploitative and taxes collected are not well spent.

Domestic resource mobilisation and quest for alternative development financing

Domestic resource mobilization is growing  as the best fiscal governance approach to reduce aid dependency and take full ownership of national development strategies. Overall, whilst traditional aid donors continue to be critical , foreign aid budgets have become increasingly under stress over the medium and long-term.

The search for alternative sources of development finance is  important yet constant reports show that African countries, such as Tanzania,  have been missing domestic revenue collection targets. National debts have  bludgeoned to unsustainable levels as governments seek to fill their tax holes, required to finance essential development. Tax evasion and illicit financial outflows are rampant. Reports by organizations such as the Global Financial Integrity and Tax Justice Network show massive resources lost through illicit outflows and tax dodging by multinational companies through aggressive avoidance measures such as transfer mispricing.  People’s awareness and participation in  fiscal governance is limited. Taxes are generally unfair and unjust for the poor.

The purpose of this project is to increase awareness and citizen participation in tax matters via

  • Simplified Analytical pieces on fiscal policy and Taxation
  • Strategic convenings and trainings or tax clinics
  • Local and  International advocacy for just and equitable tax policies and systems