1. Introduction

The Policy Forum (PF) is a network of over 70 Tanzanian civil society organizations drawn together by their specific interest in augmenting the voice of ordinary citizens to influence policy processes that help in poverty reduction, equity and democratization with a specific focus on public money accountability at both central and local levels. Policy Forum’s long- term impact is “Contribution to enhanced governance and accountable use of public resources by improving civil society capabilities and opportunities to influence and monitor policies.”

2. Background

The Fair Tax Monitor (FTM) is a unique evidence-based advocacy tool that makes it possible to identify the main bottlenecks in tax systems and provides strong evidence for advocacy. At the same time, the standardized methodology allows for comparison of tax and spending policies and practices across countries.

The FTM’s overall goal is to strengthen advocacy activities at local and global levels on equitable and fair taxation. It provides an overview of national tax systems and identifies the main challenges they face. The tool provides reliable evidence for partners’ advocacy and lobbying work, which strengthens their position and increases their credibility and influencing power.

This is the first study of this magnitude to be conducted in Tanzania using the FTM. The study is guided by the revised Common Research Framework (CRF - 2019) methodology which takes into consideration the gendered impact of Tanzania’s tax system. A fair and effective tax system is key to sustainable development, as it can facilitate mobilization of the domestic revenue needed to fund key public services such as healthcare, education, social welfare development, law enforcement agencies, infrastructure etc., and while at the same time playing a redistributive and formative role, and helping to address gender inequalities. The results of this study are intended to give citizens, CSOs, government and other key stakeholders information on how to advocate for more transparent and accountable revenue generation and spending policies through the transformation of fiscal systems to better respond to the needs of citizens, especially women and girls, in Tanzania.

This study aims to assess Tanzania's tax systems, focusing on progressiveness, transparency, and accountability, while integrating a gender perspective. Despite Tanzania's notable economic progress and poverty reduction efforts, the effectiveness of its tax systems remains underexplored.

3. Development of Draft FTM Study

Policy Forum (PF) collaborated with a consultant to develop the draft FTM study. This process involved consultations and expert workshops, where the team reviewed the FTM guide. Using data gathered from questionnaires and analysis provided by the consultant, PF consolidated the information to produce the draft study.

4. Scope and Strategic Approaches

PF adhered to the six thematic evaluation categories from the FTM methodology, which are designed to address critical tax system challenges in developing countries and reflect the principles of a fair tax system. These categories include: -

• Distribution of the Tax Burden and Progressivity-Inequality.
• Revenue Sufficiency and Tax Leakages
• Tax Competition and Corporate Incentives
• Effectiveness of the Tax Administration
• Government Spending
• Transparency and Accountability

5. Proposed Methodology

PF proposes the following tasks for the consultant:

1. 1. Review the Draft FTM Study: Conduct a thorough analysis of the existing draft.
   2. Identify Gaps: Highlight areas of improvement and address shortcomings within the draft FTM study.
   3. Conduct Desk Research: Perform comprehensive desk research to collect information and data to fill gaps identified.
   4. Proofread and Refine the Report: Ensure the final draft is technically sound, coherent, and complete.

6. Deliverables

The consultant is expected to submit the final draft of the FTM study, which will undergo validation by a broad range of tax stakeholders within and outside Tanzania.

7. Expertise of the Consultant

PF seeks a consultant with a multidisciplinary background, specializing in taxation, economics, public finance, gender studies, and human rights. Additionally, the consultant should ideally have experience working with the Tanzania Revenue Authority (TRA). The following skills are essential:

1. 1. Deep Knowledge of Tanzania’s Tax System: Familiarity with Tanzania's tax laws and administrative structures is critical for a comprehensive assessment.
   2. Gender Expertise: Extensive experience in gender equality and women’s empowerment, with a solid understanding of gender dynamics and biases within economic and social contexts, is essential.
   3. Governance and Accountability Expertise: A strong grasp of governance principles, including transparency and accountability mechanisms, is required for evaluating tax system effectiveness.
   4. Development and Poverty Reduction Knowledge: The consultant should be well-versed in Tanzania’s development goals and policy priorities, such as the Third Five-Year Development Plan (FYDP III).

8. Management of the process

The PF secretariat will review the final draft of the FTM study, provide feedback, and the consultant will be required to address all comments and finalize the document within an agreed timeline.

A service contract is signed for 5 working days. 50% payment by fee agreement including statutory deductions, and 50% upon presentation and acceptance of the final document by PF.