Corruption and integrity in Tanzania’s tax administration

This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.

Query

What are the biggest corruption issues in the national revenue administration in Tanzania? What are current integrity initiatives? Which measures have worked so far and which not? How do these compare to other countries’ tax administrations?

Tax administration in Tanzania has undergone several reforms in recent decades but still faces several obstacles, including corruption. The drivers of corruption include organised crime in the region, complex tax structures and administrative procedures, low law-enforcement capacity, political interventions and a large informal economy in the country. The tax administration is vulnerable to administrative corruption and policy capture by private interests. Consequences of corruption include a reduced revenue collection, weakened institutional capacity and the erosion of public trust in the tax authority – the foundation of tax compliance.

Contents

1. Background
   1. Tax administration and corruption
   2. The tax base in Tanzania in a regional perspective
   3. The Tanzania Revenue Authority
2. Corruption risks in Tanzania's tax administration
   1. Drivers of corruption in tax administration
   2. Forms of corruption in Tanzania's tax administration
   3. The impact of corruption in Tanzania's tax administration
3. Integrity measures
4. References

Authors

Caitlin Maslen and Matthew Jenkins (TI), with research assistance from Colette Ashton

Reviewers

Odd-Helge Fjeldstad (U4)

Date

03/09/2025

Tags