The minister said that from July 2015 to March 2016 the amount that had been exempted from tax amounted to 564,106m/- She said her ministry’s forecast indicated that by the end of this financial year exemptions would reach 752,141m/-, equivalent to 0.8 per cent of the GDP.
Dr Kijaji made the remarks when responding to a question from Special Seats MP Upendo Peneza (Chadema), who wanted to know when the government would live to its promise to cut down the rate of tax exemptions to one per cent of the national income.
“Some of the exemptions are inevitable globally. The most important thing is that the government will make sure that all tax exemptions are provided in accordance with the law.
“The aim of the government is to have few tax exemptions which will help to stimulate the country’s economic growth,” she said.
In her supplementary question Pendeza wanted the deputy minister to state when the government would review the income tax law and scrap tax exemptions for the president’s and judges’ salaries so that pay as you earn (PAYE) tax could be deducted from their salaries.
Dr Kajaji, without being specific, told the National Assembly that when the right time came the review would be done.
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