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Up revenues, Dar es Salaam told

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DAR ES SALAAM, TANZANIA - Tanzania has been branded as the champion in soliciting for foreign aids whilst being ineffective  in collecting collection taxes which would have lessesed the country's donors' dependency.
That was observed last week by an international consultant 'International Center for Tax and Development' (ICTD)  which warned more efforts be used collect domestic taxes.
ICTD Research Director, Prof Odd-Helge Fjeldstad, said researches show that countries with high foreign aids receipts tend to have a low-tax collection rates in comparison to Gross Domestic Products.
"Tanzania is good in chasing donors' money," Fjeldstad told participants of one-day Tax and Development workshop organized by the Norwegian Church Aid (NCA) in Dar es Salaam.
The Norwegian economist noted a negative relationship between aid funds and revenue collections as if one increases the other decreases.
In 2009, the research document shows, Tanzania aids ratio to GDP was 11.2 % compared to 15.1 % of revenue collections, on other had Zambia aids contribution to GDP was 7.4 % and revenue 17.3 %.
While the biggest economy in East Africa, Kenya does not factor in donors money into its budget and has the highest rate of revenue collection in the region of about 20 %. Mozambique has the highest ratio of 22.4 % donors' aids to GDP and 12.4 % of revenue collection.
Prof Fjeldstad, who is also lecturer at Chr. Michelsen Institute (CMI), said it's high time for African economies to learn from the Euro debt crisis that the trend in near future is to cut aid.
"Its higher time for countries (in Africa) to start building internal revenue collecting capacity and walk out of budget dependency," the researcher said.
Commenting on Prof Fjeldstad's presentation wondered why the Government was putting a lot of efforts in looking for foreign aid instead of widen tax base and collections.
"Let's change the way we are doing things instead of looking for donors aid, lets concentrate on improving tax collection," participants urged.
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