Taxation on Gold Export for Agricultural Developments in Tanzania

Abstract

This study is about Taxation on Gold Export for agricultural Development in Tanzania. The study reveals that gold export tax plays a significant role in the agricultural productivity of Tanzania once utilized fully for national development as reflected in the findings and suggested on gold export tax push theory identified by the researcher. This is a new theory that suggest government to increase commitment on agricultural development through utilizing gold export revenue. It is unlike today where there is less contribution of gold export to the domestic economy. It is suggested that gold export tax should be introduced since the value of gold is high and stable than the local currency and the USA $, the government should enjoy the maximum revenue without doubt given the available gold stock. Again gold export is observed to be a lucrative business and benefit more foreign economy through the multinational companies that export it rather than domestic economy that suffer more. This study reveals a significant revenue lost on tax export that once targeted could have improved the performance of the domestic economy through agricultural development. The study recommend that first the government should introduce gold export tax push to improve the agricultural performance and provide farmers with farming tools and technology. Secondly multinational companies must increase transparency and responsibility of paying taxes to the government and reverse the current trend on tax payment before depletion point. Lastly the central bank must make sure that the gold revenue to a large extent must reside in the country to help stimulate the domestic economy. Clear policies to utilize gold export revenue must be in place before gold is depleted.

Keywords: Gold Export, Taxation. Agriculture, Gold export tax push, tax revenue

DOI: 10.7176/JESD/10-24-13

Publication date: December 31st 2019