DEPUTY Minister for Finance, Mr Mwigulu Nchemba, on Friday concurred that the government was supposed to collect taxes from transactions involving the Escrow account and directed all those who benefitted from the funds to pay up by December 31, this year.
Mr Nchemba said that all the money due to the government will be retrieved, noting that the state was to be paid 26.97bn/- in taxes but has only been paid 4.21bn/-.
He also directed that disciplinary action be taken against the Tanzania Revenue Authority (TRA) employee who purposely miscalculated on how much the state should be paid in taxes and that authorities should investigate and legal action be taken.
He said taxes in the escrow funds transaction is in three categories - namely Capital Gains Tax, Value Added Tax and Income Tax and that the TRA is working on the matter.
"TRA is ongoing with the process. That taxes have to be paid.TRA, go on with the process so that those involved can remit taxes," he said.
He said the government cannot leave such a huge sum of money in the hands of those who are well-off and grapple with struggling petty traders to pay taxes.
"This money will be paid. TRA has already taken measures including writing letters to Pan African Power Solutions Tanzania Limited (PAP) expressing intent to withdraw certificates that were given on Capital Gains Tax (CGT).
"The certificates were issued based on false contracts," he said, further directing TRA to take action against any other official who may have used forged documents.
In her contribution, Minister of State in the Prime Minister's Office (Regional Administration and Local Government), Ms Hawa Ghasia, said that whoever was involved in the matter should be taken to task, but those who were not involved should not be victimised.
She said that it was important that the Parliamentary Public Accounts Committee (PAC) verifies some of its contentions in the report that there were people who came out of a bank with sacks of money.
Kishapu MP, Suleiman Nchambi blamed the government for having delayed in bringing the matter to the floor for debate.
He said Tanzanians want to know whose money was in the Escrow account. He said Tanzania Electric Supply Company (Tanesco) had legal consultancy costs that had lingered on for 10 years, noting that the matter had to be brought to an end since a lot of money was being spent.
Sikonge MP, Mr Said Nkumba (CCM), congratulated the Controller and Auditor General (CAG) report on the Escrow account transaction, noting that it was paramount that the report be discussed in Parliament.
He, however, noted that there were shortcomings in the report because they do not make it clear who is culpable and who is not. The MP also suggested that the individual that dished out funds to people, some being senior government officials, should be questioned and give answers as to what was his motive.
He said that paying people huge sums of money without any valid explanation leaves a lot wanting and is a source of suspicion. He congratulated Mr Nchemba for taking action to request all those who were involved in receiving the money to immediately pay taxes.
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