ECONOMISTS in the country have urged the government to strengthen tax enforcement, expand business registration and reform state-owned enterprises, warning that persistent revenue losses pose a serious threat to national development and long-term economic stability.

 In separate interviews at the weekend, the experts said weak enforcement of existing tax laws and a large informal sector continue to undermine government efforts to mobilise sufficient domestic revenue.

 Prof. Dickson Pastory of the College of Business Education (CBE) said the government should intensify registration of all new and existing businesses, including those operating online.

 He noted that while the law requires everyone earning an income to pay tax, enforcement remains weak, allowing many traders to operate outside the formal system.

 “The government must ensure that all businesses are registered and brought into the tax net. This includes online businesses which are growing rapidly but remain largely unregulated,” he said.

 He singled out the hospitality sector, particularly bars and restaurants as one of the industries with high levels of tax evasion due to frequent failure to issue fiscal receipts.

 He urged the public to consistently demand receipts, warning that customers who do not do so indirectly enable tax avoidance.

 “Public awareness is critical. When consumers demand receipts, it becomes much harder for businesses to evade tax,” he said, adding that improved compliance could significantly reduce revenue leakages.

 Prof. Pastory also proposed that more companies—including banks, mobile service providers and public entities such as the Tanzania Railways Corporation (TRC)—be listed on the Dar es Salaam Stock Exchange (DSE).

 He said public listing would enhance transparency and accountability, making it harder for companies to conceal losses while enabling the government to benefit from declared profits.

He further noted that expanding employment opportunities would increase citizens’ income levels, boost savings and investment and ultimately widen the national tax base.

 Supporting the call for reforms, Prof. Hajj Semboja of the State University of Zanzibar (SUZA) said state-owned enterprises should be managed in line with international corporate governance standards.

 He stressed that appointments to leadership positions must be based on qualifications and competence with transparent processes for selecting board members and senior executives.

Prof. Semboja said listing more public enterprises on the DSE would strengthen governance, improve financial discipline and generate additional revenue for the state.

 Dr. Nassibu Mramba, also of CBE, emphasized the need for both short and long-term strategies to strengthen government revenue collection.

 He said short-term measures should focus on maximising the use of existing resources and cutting non-essential expenditure, including excessive international travel and conferences.

 In the long term, Dr. Mramba said the government must prioritise investment in productive sectors such as agriculture, mining and services, which have the potential to create jobs and significantly expand tax base.

He noted that about 44 percent of Tanzania’s development budget is currently financed by donors while a large share of national expenditure goes towards recurrent costs. This situation, he said, underscores the urgency of strengthening domestic revenue sources to reduce reliance on external funding.

 The economists agreed that without decisive reforms in tax enforcement, corporate governance and investment strategy, the country risks continued revenue shortfalls that could slow economic growth and limit the government’s ability to fund essential public services.