Tax instruments for Tanzania's industrialization growth

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dc.creatorMaskaeva, A.
dc.creatorMmasa, J.
dc.creatorLema, N.
dc.creatorMgeni, M.
dc.date2020-11-24T14:19:24Z
dc.date2020-11-24T14:19:24Z
dc.date2019
dc.date.accessioned2021-03-27T10:26:21Z
dc.date.available2021-03-27T10:26:21Z
dc.descriptionFull text article. Also available at https://doi.org/10.15405/epsbs.2019.12.05.109
dc.descriptionTanzanian government aims to reshape the economy into a semi-industrialized nation by 2025. As a policy measure to support this reform, the government exempted producer capital commodities from value-added tax in 2017/2018 fiscal year. This aims to foster utilization of these commodities in the manufacturing sector in order to generate economic growth, employment, and social well-being of the nation. This research examines the impact of macroeconomic fiscal instruments on the Tanzanian economy, by applying a static “Partnership for Economic Policy1-1”standard Computable General Equilibrium model. We simulate a reduction of the value-added tax rate on producer capital commodities (electricity, machinery, electrical equipment, vehicles, and other equipment) under two different government closure rules. In the first simulation, government expenditures are fixed while government savings are flexible and adjust to changes in government revenue. Results show a decline in investment expenditure following a decrease in government savings and thus a negative impact on macroeconomic indicators. In the second simulation, government savings are fixed to maintain the budget deficit. The results show a decline in real Gross Domestic Product partly because of a decrease in output in governmental, some agricultural and service sectors. Conversely, output increases for all manufacturing sectors, resulting in lower the average unemployment rate.
dc.identifierMaskaeva, A., Mmasa, J., Lema, N. & Mgeni, M. (2019). Tax instruments for Tanzania's industrialization growth. In the European Proceedings of Social & Behavioural Sciences (pp. 892-900) Future Academy, Russia.
dc.identifierDOI:10.15405/epsbs.2019.12.05.109
dc.identifierhttp://hdl.handle.net/20.500.12661/2593
dc.identifier.urihttp://hdl.handle.net/20.500.12661/2593
dc.languageen
dc.publisherFuture Academy
dc.subjectCapital commodities
dc.subjectValue added tax
dc.subjectMacroeconomic
dc.subjectMacroeconomic indicators
dc.subjectTanzania
dc.subjectComputable General Equilibrium
dc.subjectCGE
dc.subjectIndustrialization
dc.subjectSocial accounting matrix
dc.subjectTax
dc.subjectTanzania`s industrialization
dc.subjectSustainable development
dc.subjectProject management
dc.subjectTax instruments
dc.titleTax instruments for Tanzania's industrialization growth
dc.titleIn the European Proceedings of Social & Behavioural Sciences
dc.typeConference Proceedings

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