Tax instruments for Tanzania's industrialization growth

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dc.contributor.authorMaskaeva, A.
dc.contributor.authorMmasa, J.
dc.contributor.authorLema, N.
dc.contributor.authorMgeni, M.
dc.date.accessioned2020-11-24T14:19:24Z
dc.date.available2020-11-24T14:19:24Z
dc.date.issued2019
dc.descriptionFull text article. Also available at https://doi.org/10.15405/epsbs.2019.12.05.109en_US
dc.description.abstractTanzanian 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.en_US
dc.identifier.citationMaskaeva, 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.en_US
dc.identifier.otherDOI:10.15405/epsbs.2019.12.05.109
dc.identifier.urihttp://hdl.handle.net/20.500.12661/2593
dc.language.isoenen_US
dc.publisherFuture Academyen_US
dc.subjectCapital commoditiesen_US
dc.subjectValue added taxen_US
dc.subjectMacroeconomicen_US
dc.subjectMacroeconomic indicatorsen_US
dc.subjectTanzaniaen_US
dc.subjectComputable General Equilibriumen_US
dc.subjectCGEen_US
dc.subjectIndustrializationen_US
dc.subjectSocial accounting matrixen_US
dc.subjectTaxen_US
dc.subjectTanzania`s industrializationen_US
dc.subjectSustainable developmenten_US
dc.subjectProject managementen_US
dc.subjectTax instrumentsen_US
dc.titleTax instruments for Tanzania's industrialization growthen_US
dc.title.alternativeIn the European Proceedings of Social & Behavioural Sciencesen_US
dc.typeConference Proceedingsen_US
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