Browsing by Author "Magai, Petro S."

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    INDUSTRIALIZATION DRIVE, FISCAL POLICYAND CROSS BORDER TRADE PERFORMANCE AMONG EAST AFRICAN COUNTRIES
    (University of Dar es Salaam Business School, 2020-08) Swai, Tobias A.; Magai, Petro S.
    Industrialization has been considered as a key to the development of nations. Since its re-established in 1993, the East African block has been striving to develop various strategies to ensure equitable development within the region and increasing trade opportunities. For the past four years, the industrialization has been the key budgeting focus of the states. This study as analyses the policy reforms towards industrialization drive among the countries and its implications to the performance of the trade across the nations. A contextual analysis of the fiscal policies was undertaken based on Pelkmans (2006) industrial policy framework and review of the performance of the regional cross border trade based on the Country Similarity Theory and Porter’s National Competitive Advantage Theory. The results suggests that Tanzania’s fiscal focus have been industrial infrastructure development while the rest of the countries has been local manufacturing initiatives. EAC countries through common external tariffs have been in the recent years focusing on the promotion of local industries by setting high tariffs on the importation of processed food items and vegetable oils. However, Tanzania has been in the past five years a net exporter of raw food items and Kenya a net importer of food items across the member states. Kenya seems to leading the EAC bloc in industrialization and incentives provided as well as local tax revenues to the fiscal policy. It is therefore recommended from this study that strategic alliances for clustering and promotion of industrial policies based on the Pelkmans (2006) should be adopted for sustainable industrial policy in the region.
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    Involvement in Informal Cross Border Trade: A Case of Women Entrepreneurs in Tanzania
    (Academic Star Publishing Company, 2015) Mwakisale, Lisa; Magai, Petro S.
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    Sustainability of Tanzanian Fresh Water Fishing Industry
    (Academic Star Publishing Company, 2011) Magai, Petro S.
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    Tanzania’s Mining Sector and Its Implications for the Country's Development
    (Hochschule fuer Technik und Wirtschaft, Berlin, 2011) Magai, Petro S.; Márquez-Velázquez, Alejandro
    This paper analyses the factors that reduce the mineral sector’s contribution to the Tanzanian government’s revenue. This sector accounts for nearly half of the country’s exports and places it among Africa’s largest exporters. Yet, ordinary Tanzanians have seen little benefit from their country’s exports boom. This is partly because the government has enacted tax laws that are, as we shall see, overly favorable to multinational mining companies, and partially due to the business practices of the companies themselves. The situation is further exacerbated by these companies avoiding taxes altogether by claiming losses. Nonetheless, they continue to invest in operations. Critics argue that the government fails to capture a substantial amount of state revenue as a result of low royalty rates, unpaid corporate taxes and tax evasion major gold mine operators. This paper argues that the Tanzanian government should increase its involvement in the mining industry by entering into joint ventures with mining companies, or by increasing its shares in them. Its involvement will result in an increase in tax and royalties collection.
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    Taxation in the Tanzanian Gold Sector: Overview of Impacts and Possible Solutions
    (Taylor & Francis, 2013) Magai, Petro S.; Márquez-Velázquez, Alejandro
    This paper analyses the factors that reduce the gold sector's contribution to the Tanzanian government's revenue. Tanzania is among Africa's largest gold exporters. Yet ordinary Tanzanians have seen little benefit from this. This is partly because the government has enacted tax laws that are, as we shall see, overly favourable to multinational mining companies, and partly because of the same companies' business practices. Critics argue that the government fails to capture a substantial amount of state revenue as a result of low royalty rates, unpaid corporate taxes and tax evasion by major gold mine operators. This paper argues that the Tanzanian government should try to increase its share of revenues by taxation based on revenues, increasing its auditing skills and its involvement in mining, as well as by increasing the transparency of contracts and limiting the discretionary power of policy-makers in negotiating contracts.