Property tax policy and administration in Tanzania

Project Active from to State

In July of 2016, the government of the United Republic of Tanzania shifted responsibility for property tax administration and collection from the Local Government Authorities(LGAs) to the Tanzanian Revenue Authority (TRA). The TRA is in a process of planning and strategizing for how it will manage property taxation, expand the number of municipalities to collect property taxes in all urbanized municipalities according to the Central government’s objectives, and ultimately increase property tax revenue substantially.

The IGC and TRA are partnering in this project to conduct research in property taxation issues. The project aims to address the following:

  1. What is the current situation pertaining to property taxes in Tanzania, including the legal and institutional framework, realised practices, level of compliance, heterogeneity in enforcement across municipalities;
  2. What are the key tax policy and tax administration issues in the property taxation the TRA should be aware of and respond to;
  3. Are there any pertinent lessons from other countries such as Rwanda, Uganda for property taxation reform in Tanzania?

The project will produce an issues note, on property tax policy and tax administration issues. Based on a quick diagnostics, the note will focus on mechanisms by which TRA can increase tax compliance, broaden the property tax base, and adopt strategies for expanding property taxation in Tanzania