\ THE UNITED REPUBLIC OF TANZANIA
FOR
OFFICIAL STATISTICS IN TANZANIA
THIRD EDITION
National Bureau of Statistics Ministry of Finance and Planning Dar-es-Salaam
June, 2016
National Bureau of Statistics
Vision “To become a one-stop centre for official statistics in Tanzania”
Mission
“To produce quality official statistics and services that meet needs of
national and international stakeholders for evidence -based planning and
decision making”
i Concepts and Definitions TABLE OF CONTENTS
PREFACE ........................................................................................................................................................ x
INTRODUCTION........................................................................................................................................... xi
PART ONE: REAL SECTOR ...................................................................................................................... 1
CHAPTER ONE............................................................................................................................................. 1
NATIONAL ACCOUNTS STATISTICS .................................................................................................... 1
1.0
The System of National Accounts (SNA) ............................................................................................. 1
1.1
Regional National Accounts ................................................................................................................. 1
1.2
Quarterly National Accounts (QNA) .................................................................................................... 1
1.3
Semi-annual National Accounts ........................................................................................................... 1
1.4
Institutional unit .................................................................................................................................... 2
1.5
Economic Production ............................................................................................................................ 2
1.6
Current Prices ....................................................................................................................................... 2
1.7
Current Price Estimates ........................................................................................................................ 2
1.8
Constant Price ....................................................................................................................................... 2
1.9
Constant Price Estimates ...................................................................................................................... 2
1.10 Price Deflator / GDP deflator ............................................................................................................... 2
1.11 Implicit Price Deflator .......................................................................................................................... 2
1.12 Market output........................................................................................................................................ 3
1.13 Gross ..................................................................................................................................................... 3
1.14 Gross Domestic Product (GDP) ............................................................................................................ 3
1.15 Basic price ............................................................................................................................................ 3
1.16 Gross Domestic Product at Basic Prices ............................................................................................... 4
1.17 Gross National Income (GNI)............................................................................................................... 4
1.18 Real Gross Domestic Income ............................................................................................................... 4
1.19 Real Gross National Income ................................................................................................................. 4
1.20 Factor Incomes from the Rest of the World ......................................................................................... 4
1.21 Value Added ......................................................................................................................................... 5
1.22 Goods and Services ............................................................................................................................... 5
1.23 Subsistence Production ......................................................................................................................... 5
1.24 Stocks .................................................................................................................................................... 5
1.25 Subsidies ............................................................................................................................................... 5
1.26 Other subsidies on production .............................................................................................................. 6
1.27 Other subsidies on products .................................................................................................................. 6
1.28 Export subsidies .................................................................................................................................... 6
1.29 Output ................................................................................................................................................... 6
ii Concepts and Definitions
1.30 National Disposable Income: ................................................................................................................ 6 1.31 Capital transfers .................................................................................................................................... 7 1.32 Current transfers ................................................................................................................................... 7 1.33 Gross National Disposable Income....................................................................................................... 7 1.34 Property Income.................................................................................................................................... 7 1.35 Final Consumption Expenditure ........................................................................................................... 7 1.36 Final consumption expenditure of government .................................................................................... 7 1.37 Final consumption expenditure of households ..................................................................................... 7 1.38 Final consumption expenditure of NPISHs .......................................................................................... 8 1.39 Compensation of Employees ................................................................................................................ 8 1.40 Wages and Salaries in cash ................................................................................................................... 8 1.41 Wages and Salaries in kind ................................................................................................................... 8 1.42 Intermediate Consumption .................................................................................................................... 8 1.43 Actual Final Consumption of Households ............................................................................................ 8 1.44 Gross Fixed Capital Formation ............................................................................................................. 8 1.45 Acquisitions .......................................................................................................................................... 8 1.46 Changes in Inventories ......................................................................................................................... 9 1.47 Gross Capital Formation ....................................................................................................................... 9 1.48 Acquisitions of Non-financial Assets ................................................................................................... 9 1.49 Exports of Goods and Services ............................................................................................................. 9 1.50 Imports of Goods and Services ............................................................................................................. 9 1.51 Imports of goods ................................................................................................................................. 10 1.52 Imports of services .............................................................................................................................. 10 1.53 Cost, Insurance and Freight Price (c.i.f) ............................................................................................. 10 1.54 Free on board price (F.o.b) ................................................................................................................. 10 1.55 Operating Surplus ............................................................................................................................... 10 1.56 Fixed Assets and Consumption of Fixed Capital ................................................................................ 10 1.57 Non-financial assets ............................................................................................................................ 11 1.58 Non-produced assets ........................................................................................................................... 11 1.59 Valuables ............................................................................................................................................ 11 1.60 Basic Price .......................................................................................................................................... 11 1.61 Producers’ Price .................................................................................................................................. 11 1.62 Purchasers’ Price ................................................................................................................................ 11 1.63 Financial Intermediation ..................................................................................................................... 12 1.64 Financial intermediation services indirectly measured ....................................................................... 12 1.65 Social Accounting Matrix (SAM)....................................................................................................... 12 1.66 Input-Output Table ............................................................................................................................. 13 1.67 Supply and Use Tables ....................................................................................................................... 14
iii
Concepts and Definitions
1.68 Value Added Tax (VAT) .................................................................................................................... 14
1.69 Taxes on products ............................................................................................................................... 14
1.70 Taxes on production and imports........................................................................................................ 14
1.71 Taxes and duties on imports ............................................................................................................... 14
1.72 Deductible VAT.................................................................................................................................. 14
1.73 Non-deductible VAT .......................................................................................................................... 15
1.74 Export taxes ........................................................................................................................................ 15
1.75 Import Duty ........................................................................................................................................ 15
1.76 Public Sector ....................................................................................................................................... 15
1.77 Private Sector ...................................................................................................................................... 15
1.78 Production Sector ................................................................................................................................ 15
1.79 Service Sector ..................................................................................................................................... 15
1.80 Additional Concepts ........................................................................................................................... 15
CHAPTER TWO ......................................................................................................................................... 17
TAX STATISTICS ....................................................................................................................................... 17
2.0
Types of Taxes .................................................................................................................................... 17
2.1
Direct Taxes ........................................................................................................................................ 17
2.2
Indirect Taxes (Consumption Taxes) .................................................................................................. 20
2.3
Value Added Tax on Imports.............................................................................................................. 20
2.4
Other Taxes ......................................................................................................................................... 20
2.5
Custom Modernization Programme .................................................................................................... 21
2.6
Tax Incentives ..................................................................................................................................... 22
PART TWO: SOCIAL SERVICES SECTOR .......................................................................................... 24
CHAPTER THREE ..................................................................................................................................... 24
DEMOGRAPHIC STATISTICS ................................................................................................................ 24
3.1
Fertility ............................................................................................................................................... 24
3.2
Mortality ............................................................................................................................................. 26
3.3
Migration ............................................................................................................................................ 28
3.4
Population Change .............................................................................................................................. 29
3.5
Other Demographic Concepts ............................................................................................................. 33
CHAPTER FOUR ........................................................................................................................................ 34
EDUCATION STATISTICS ....................................................................................................................... 34
4.0
Literacy ............................................................................................................................................... 34
4.1
Literacy Rate ....................................................................................................................................... 34
4.2
Education ............................................................................................................................................ 34
CHAPTER FIVE .......................................................................................................................................... 41
iv
Concepts and Definitions
HEALTH STATISTICS .............................................................................................................................. 41
5.0
Morbidity ............................................................................................................................................ 41
5.1
Disease Incidence ............................................................................................................................... 42
5.2
Disease Prevalence ............................................................................................................................. 42
5.3
Notefiable disease. .............................................................................................................................. 42
5.4
Sanitation ............................................................................................................................................ 42
5.5
Family planning .................................................................................................................................. 42
5.6
Trachoma ............................................................................................................................................ 42
5.7
Antenatal care ..................................................................................................................................... 42
5.8
Medicine ............................................................................................................................................. 42
5.9
Diagnosis ............................................................................................................................................ 42
5. 10 Impairment .......................................................................................................................................... 42
5.11 Disability ............................................................................................................................................ 42
5.12 Handicap ............................................................................................................................................. 43
5.13 Orphan ................................................................................................................................................ 43
5.14 Doctor Patient Ratio ........................................................................................................................... 43
5.15 Nurse Patient Ratio ............................................................................................................................. 43
5.16 Hospital Beds ...................................................................................................................................... 43
5.17 Anthropometric Measurements........................................................................................................... 44
5.18 Body Mass Index (BMI) ..................................................................................................................... 44
5.19 Anemia ................................................................................................................................................ 45
5.20 Low Birth Weight ............................................................................................................................... 45
5.21 Arm Circumference ............................................................................................................................ 46
5.22 Outpatient attendance ratio. ................................................................................................................ 46
5.23 Proportion of births attended in health facility ................................................................................... 46
5.24 Proportion of births attended by skilled health personnel .................................................................. 46
5.25 Pharmacist patient ratio ...................................................................................................................... 46
5.26 Nurse midwife patient ratio ................................................................................................................ 46
5.27 Contraceptive prevalence rate. ............................................................................................................ 46
5.28 Surveillance ........................................................................................................................................ 46
5.29 Curative Services ................................................................................................................................ 46
5.30 Preventive Services ............................................................................................................................. 46
5.31 Folk Education .................................................................................................................................... 47
5.32 Gender ................................................................................................................................................ 47
5.33 Gender Based Violence (GBV) .......................................................................................................... 47
5.34 Violence Against Children (VAC) ..................................................................................................... 47
5.35 Influential People ................................................................................................................................ 47
5.36 Female Genital Mutilation (FGM) ...................................................................................................... 47
v
Concepts and Definitions
5.37 Adoption ............................................................................................................................................. 47
5.38 Most Vulnerable Children .................................................................................................................. 47
5.39 Matrimonial Problems: ....................................................................................................................... 48
5.40 Gerontology: ....................................................................................................................................... 48
5.41 People with Disabilities: ..................................................................................................................... 48
5.42 Rehabilitation:..................................................................................................................................... 48
5.43 Settlements .......................................................................................................................................... 48
5.44 Social Protection ................................................................................................................................. 48
5.45 Social Support ..................................................................................................................................... 48
5.46 Psychosocial Support .......................................................................................................................... 48
5.47 Older Persons: ..................................................................................................................................... 49
5.48 Technical Devices: .............................................................................................................................. 49
5.49 Civil Registration ................................................................................................................................ 49
5.50 Insolvency ........................................................................................................................................... 49
5.51 Vital Statistics ..................................................................................................................................... 49
5.52 Trustee ................................................................................................................................................ 49
5.53 Marriage .............................................................................................................................................. 49
5.54 Birth .................................................................................................................................................... 50
5.55 Death ................................................................................................................................................... 50
5.56 Divorce ............................................................................................................................................... 50
5.57 Vital Event .......................................................................................................................................... 50
5.58 HIV incidence ..................................................................................................................................... 50
5.59 HIV prevalence ................................................................................................................................... 50
CHAPTER SIX............................................................................................................................................. 51
LABOUR AND PRICE STATISTICS ....................................................................................................... 51
6.0
Labour Statistics ................................................................................................................................. 51
6.1
Economic Activities ............................................................................................................................ 51
6.2
Price Statistics ..................................................................................................................................... 55
CHAPTER SEVEN ...................................................................................................................................... 58
POVERTY AND WELFARE STATISTICS ............................................................................................. 58
7.0
Poverty ................................................................................................................................................ 58
7.1
Welfare ............................................................................................................................................... 58
7.2
Human Development Indices.............................................................................................................. 61
7.3
Statistical Unit .................................................................................................................................... 63
7.4
Marital Status ...................................................................................................................................... 64
7.5
Household Expenditure ...................................................................................................................... 66
7.6
Household Direct Expenditure (Consumption Expenditure) .............................................................. 66
vi
Concepts and Definitions
7.7
Household Indirect Expenditure (Domestic Non- Consumption Expenditure) .................................. 66
CHAPTER EIGHT ...................................................................................................................................... 67
CRIME, JUSTICE AND SECURITY STATISTICS ............................................................................... 67
8.1
Police Statistics ................................................................................................................................... 67
8.2
The Judiciary of Tanzania .................................................................................................................. 71
8.3
Prison .................................................................................................................................................. 74
PART THREE: PRODUCTION AND ENVIRONMENT SECTOR ..................................................... 78
CHAPTER NINE ......................................................................................................................................... 78
AGRICULTURAL STATISTICS .............................................................................................................. 78
9.0
Agricultural Statistics ......................................................................................................................... 78
9.1
Basic Agricultural Statistics ............................................................................................................... 78
9.2
Current Agricultural Statistics ............................................................................................................ 78
9.3
Crop Statistics ..................................................................................................................................... 82
9.4
Fertilizers and Pesticides .................................................................................................................... 84
9.5
Livestock Statistics ............................................................................................................................. 86
9.6
Fisheries .............................................................................................................................................. 90
9.7
Other Agricultural Statistics ............................................................................................................... 93
CHAPTER TEN ........................................................................................................................................... 96
INDUSTRIAL STATISTICS ...................................................................................................................... 96
10.0 Industrial Activity ............................................................................................................................... 96
10.1 Mining and Quarrying ........................................................................................................................ 96
10.2 Manufacturing..................................................................................................................................... 98
10.3 Electricity, gas, steam and air conditioning supply .......................................................................... 110
10.4 Water supply; sewerage, waste management and remediation activities ......................................... 110
CHAPTER ELEVEN ................................................................................................................................. 119
TRADE, TRANSPORT, TOURISM AND INTERNATIONAL MIGRATION STATISTICS ............. 119
11.0 Trade Statistics.................................................................................................................................. 119
11.1 Distributive Trade ............................................................................................................................. 119
11.2 Trade Establishment ......................................................................................................................... 120
11.3 Foreign Trade Statistics .................................................................................................................... 120
11.4 Transport Statistics ........................................................................................................................... 122
11.5 Aviation Statistics / Air transport ..................................................................................................... 125
11.6 Shipping Statistics ............................................................................................................................ 127
11.7 Railway Statistics .............................................................................................................................. 129
11.8 Tourism Statistics ............................................................................................................................. 131
11.9 International Migration Statistics ...................................................................................................... 141
vii Concepts and Definitions 11.10 Wildlife Statistics .............................................................................................................................. 143 11.11 Forest ................................................................................................................................................ 147 11.12 Foreign Private Investments ............................................................................................................. 150 CHAPTER TWELVE ................................................................................................................................ 154 ENVIRONMENTAL STATISTICS ......................................................................................................... 154 12.0 Environment ..................................................................................................................................... 154 12.1 Environment Statistics ...................................................................................................................... 154 12.2. Lands, Housing and Human Settlements Statistics........................................................................... 163 CHAPTER THIRTEEN ............................................................................................................................ 169 STATISTICAL BUSINESS REGISTER ................................................................................................. 169 13.0 Establishments .................................................................................................................................. 169 13.1 Establishment Name ......................................................................................................................... 169 13.2 Regional Code .................................................................................................................................. 169 13.3 District Code ..................................................................................................................................... 169 13.4 Location ............................................................................................................................................ 170 13.5 Area .................................................................................................................................................. 170 13.6 Industrial Activity ............................................................................................................................. 170 13.7 Registration of an Establishment ...................................................................................................... 170 13.8 Persons Engaged ............................................................................................................................... 170 13.9 Total Persons Engaged ..................................................................................................................... 171 13.10 Capital Investment ............................................................................................................................ 171 13.11 Annual Turnover ............................................................................................................................... 171 CHAPTER FOURTEEN ........................................................................................................................... 172 GEO-INFORMATION SYSTEM /SPATIAL DATA ............................................................................. 172 14.0 Geographical Information System (GIS) .......................................................................................... 172 14.1 Maps ................................................................................................................................................. 172 14.2 Map Elements ................................................................................................................................... 174 14.3 Codes ................................................................................................................................................ 175 14.4 Aerial Photography ........................................................................................................................... 176 14.5 Satellite Imagery ............................................................................................................................... 176 14.6 Global Positioning System (GPS)..................................................................................................... 176 14.7 Automated Cartography .................................................................................................................... 176 CHAPTER FIFTEEN ................................................................................................................................ 177 SAMPLING ................................................................................................................................................ 177 15.0 Population ......................................................................................................................................... 177 15.1 Target population .............................................................................................................................. 177
viii Concepts and Definitions
15.2 A Sample .......................................................................................................................................... 177 15.3 A Statistic ......................................................................................................................................... 177 15.4 Parameter .......................................................................................................................................... 177 15.5 Response rate .................................................................................................................................... 177 15.6 Domain of the Study ......................................................................................................................... 177 15.7 Sampling Frame ................................................................................................................................ 178 15.8 Sampling Unit ................................................................................................................................... 178 15.9 Estimation ......................................................................................................................................... 178 15.10 Statistical Error ................................................................................................................................. 178 15.11 Sampling Error.................................................................................................................................. 178 15.12 Non – Sampling Error ....................................................................................................................... 178 15.13 Sampling Procedure .......................................................................................................................... 178 15.14 Simple Random Sampling ................................................................................................................ 179 15.15 Stratified Random Sampling (or Stratified sampling) ...................................................................... 179 15.16 Systematic Random Sampling (or Systematic Sampling) ................................................................ 179 15.17 Cluster Sampling .............................................................................................................................. 179 15.18 Multistage Sampling ......................................................................................................................... 179 15.19 Quota Sampling ................................................................................................................................ 179 15.20 Probability Proportional to Size Sampling ....................................................................................... 180 15.21 Primary sampling unit (PSU) ............................................................................................................ 180 15.22 Sampling Weight .............................................................................................................................. 180 15.23 Adjustment for statistical purposes ................................................................................................... 180 15.24 Administered item ............................................................................................................................ 180 15.25 Administration record ....................................................................................................................... 180 15.26 Administrative data ........................................................................................................................... 180 15.27 Administrative source ....................................................................................................................... 180 15.28 Bias ................................................................................................................................................... 180 15.29 Code .................................................................................................................................................. 180 15.30 Coding .............................................................................................................................................. 181 15.31 Cold deck .......................................................................................................................................... 181 15.32 Coverage ........................................................................................................................................... 181 15.33 Coverage error .................................................................................................................................. 181 15.34 Data ................................................................................................................................................... 181 15.35 Data confidentiality .......................................................................................................................... 181 15.36 Data editing ....................................................................................................................................... 181 15.37 Data imputation ................................................................................................................................ 181 15.38 Data processing ................................................................................................................................. 181 15.39 Hot deck ............................................................................................................................................ 181
ix Concepts and Definitions
15.40 Item response rate ............................................................................................................................. 182 15.41 Macro data ........................................................................................................................................ 182 15.42 Matching ........................................................................................................................................... 182 15.43 Metadata ........................................................................................................................................... 182 15.44 Micro data ......................................................................................................................................... 182 15.45 Probing .............................................................................................................................................. 182 15.46 Questionnaire .................................................................................................................................... 182 15.47 Random number................................................................................................................................ 182 15.48 Reference period ............................................................................................................................... 182 15.49 Refusal .............................................................................................................................................. 182 15.50 Respondent ....................................................................................................................................... 182
x Concepts and Definitions
PREFACE According to t he Statistics Act, 2015 one of the functions of the National Bureau of Statistics (NBS) is to develop statistical methods and standards so as to ensure their use by all producers and users of official statistics. The use of defined statistical methods and standards facilitate the integration and comparison of statistics produced both nationally and internationally.
This publication puts together all Statistical Concepts and Definitions that are used in the collection
and compilation of official statistics in the country. The objective of this publication is to produce
concepts and definitions that will be used by all producers of official statistics in the entire National
Statistical System (NSS).
To allow internal and exter nal comparisons, most of the concepts and definitions given are those recommended internationally. However, where national interests are better served by departing from international recommendations, priority is given to national interests.
The provisiona l of concepts and definitions for official statistics was prepared by the NBS in collaboration with various stakeholders from Ministries, Departments and Agencies (MDAs) within the National S tatistical System in Tanzania Mainland. Appreciation goes to the participants who spent their time to provide useful information that has enable NBS to obtain the required information.
We hope that both the current and potential producers/users of official statistics will find concepts and definitions contained herein useful in their research and analytical needs. We also welcome feedbacks, comments and suggestions that will lead to the improvement of future editions of this publication.
Dr. Albina A. Chuwa Director General.
xi Concepts and Definitions
INTRODUCTION The National Bureau of S tatistics (NBS) is not the only producer of statistics in the National Statistical System in the country. However, according to the Statistics Act, 2015 NBS is mandated among other functions to coordinate statistical services in the country so as to produc e quality statistics that are comparable over time and across subject matter areas.
Experience has shown that producers of statistics in Tanzania have been producing statistics that are conflicting. This situation has, over the years, brought difficulties for planners and decision makers to decide on which dataset to use.
In order to address this situation, the NBS has produced this document, which provides statistical concepts and definitions to be used by all producers and users of statistics so as to e nhance harmonization in the production of official statistics in Tanzania. This publication is summarized into six (6) subject matter areas; i. Demographic statistics ii. Education statistics iii. Health statistics iv. Other Social statistics v. Economic statistics vi. Crosscutting subject matter areas that include; Business Register ( BR), Geo -Information System (GIS), Sampling, and Environment.
The First Edition on Concepts and Definition s was published in 2004 -2010 as one of the regular publications for use by the Go vernment and other statistical s takeholders. The Second Edition on Concepts and Defi nitions for Official Statistics 2011-2014 was produced by involving various stakeholders from MDAs within the National Statistical System (NSS). This was aimed at fulfilling the needs of the implementation process for five years (2009/10 -2013/14) of the Tanzania Statistical Master Plan (TSMP) that focuses on five substantive components namely; Institutional Development and Legal Reforms, Human Resource Developme nt, Data Development and Dissemination, Physical Infrastructure and Equipment Development and Development of Statistical Infrastructure. Henceforth, the NSS needs to be supported by adequate statistical infrastructure based on well defined Concepts, Definitions, International Classifications and Standards.
xii Concepts and Definitions
It is expected that Development of Statistical Infrastructure will improve the Quality of Data and harmonize statistical production processes as well as reduce production costs within the NSS. This initiative will also help to raise public awareness and confidence among various customers in the use of Routine, Survey and Census Data.
The plan is to update this publication after every five (5) years. The time in between will be used to
review, develop co ncepts and definitions for new subject matter areas and promote discussions,
comments and constructive suggestions from stakeholders . The updated publication will
incorporate the new concepts and definitions and constructive suggestions from stakeholders that
will be used to produce quality statistics needed to facilitate evidence based plans for decision
making. The next edition will be produced in 2020.
1 Concepts and Definitions
PART ONE: REAL SECTOR
CHAPTER ONE
NATIONAL ACCOUNTS STATISTICS
National accounts statistics are designed to provide a consistent and comprehensive survey of the national economy. The national accounts contain national aggregates, and give detailed descriptions of transactions between different sectors of the economy, including the rest of the world.
1.0 The System of National Accounts (SNA) The System of National Accounts (SNA) is the internationally agreed standard set of recommendations on how to compile measures of economic activity. The SNA describes a coherent, consistent and integrated s et of macroeconomic accounts in the context of a set of internationally agreed concepts, definitions, classifications and accounting rules.
It provides an overview of economic processes, recording how production is distributed among consumers, businesses, government and foreign nations. It shows how income originating in production, modified by taxes and transfers, flows to these groups and how they allocate these flows to consumption, saving and investment. Consequently, the national accounts are one of t he building blocks of macroeconomic statistics forming a basis for economic analysis and policy formulation.
1.1 Regional National Accounts Refers to coherent, consistent and integrated sets of macroeconomic accounts and tables designed for a variety of analytical and policy purposes but compiled at regional level. In Tanzania Mainland, there are 26 regions and each region constitutes an economic territory used for the compilation of Regional National Accounts.
1.2 Quarterly National Accounts (QNA) Refers to coherent, consistent and integrated sets of macroeconomic accounts and tables designed for a variety of analytical and policy purposes but compiled quarterly basis in a year.
1.3 Semi-annual National Accounts Refers to coherent, consistent and inte grated sets of macroeconomic accounts and tables designed for a variety of analytical and policy purposes but compiled after every six months.
2 Concepts and Definitions
1.4 Institutional unit Refers to an economic entity that is capable, in its own right, of owning assets, incurr ing liabilities, engaging in economic activities and engaging in transactions with other entities.
1.5 Economic Production Refers to an activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital , goods and services to produce outputs of goods or services. A purely natural process without any human invol vement or direction is not production in an economic sense.
1.6 Current Prices Refers to the prevailing prices at the time of observation.
1.7 Current Price Estimates Estimation of Gross Domestic Product (GDP) at current prices involves expressing the value of each component transaction as the product of a current price and quantity.
1.8 Constant Price
Obtained directly by factoring changes o ver time in the values of flows or stocks of goods and
services into two components reflecting changes in the prices of the goods and services
concerned and changes in their volume.
1.9 Constant Price Estimates Gross Domestic Product (GDP) at constant pr ices involves expressing the value of each component transaction as the product of a fixed base year price and current quantity.
1.10 Price Deflator / GDP deflator Is a measure of the level of prices of all new, domestically produced final goods and serv ices in an economy. It measures the ratio of current -year price of a good to its price in some base year. The formula used to calculate the deflator is:
100 GDPalRe GDPalminNodeflatorGDP
1.11 Implicit Price Deflator This is obtained by dividin g GDP at current prices value by a corresponding GDP at constant prices.
3 Concepts and Definitions
1.12 Market output Refers to output sold at prices that are economically significant or otherwise disposed of on the market, or intended for sale or disposal on the market.
1.13 Gross The term “gross” is a common means of referring to values before deducting consumption of fixed capital (generally used as in “gross capital stock” or “gross domestic product”).
1.14 Gross Domestic Product (GDP) Refers to the sum of the gross values added of all resident institutional units engaged in production (plus any taxes, and minus any subsidies on products not included in the value of their outputs). The sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers’ price, less the value of imports of goods and services, or the sum of primary incomes distributed by resident producer units.
The basic formula for calculating the GDP is:
Y= C+ I + E + G
Where
Y = GDP
C = Consumer Spending
I = Investment made by Industry
E = Excess of Export over Imports (X – M)
G = Government Spending
a) Gross Domestic Product at Market Prices Refers to the producers’ value of the gross output of Resident Producers less the purchasers’ values of their intermediate Consumption plus import duties.
b) Gross Domestic Product at Factor Cost Refers to the value of all goods and services produced by the Resident without including the excess of indirect taxes over subsidies.
1.15 Basic price The basic price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable, and plus any subsidy receivable, on that unit as consequence of its production or sale; it excludes any transport charges invoiced separately by the producer.
4 Concepts and Definitions
1.16 Gross Domestic Product at Basic Prices Refers to the value of the gross output at basic prices of resident Producers less the purchasers’ values of their intermediate Consumption plus net taxes on products
1.17 Gross National Income (GNI) GNI (gross national income) is GDP less net taxes on production and imports, less compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world (in other words, GDP less primary incomes payable to none resident units plus primary income receivable from non -resident units); an alternatively approach to measuring GNI at market prices is as the aggregate value of the balances of g ross primary incomes for all sectors; (note that GNI is identical to gross national product (GNP) as previously used in national accounts generally
1.18 Real Gross Domestic Income Refers to a measure of the real purchasing power of income generated by domestic production (including the impact on those income of changes in the terms of trade); it is equal to gross domestic product at constant prices plus the trading gain (or less the trading loss) resulting from the changes in the terms of trade.
1.19 Real Gross National Income Refers to a measure of the real purchasing power of national income calculated by adjusting real gross domestic income for the real impact of primary income flows (property income and labour income) to and from the rest of the World.
1.20 Factor Incomes from the Rest of the World These include Primary Income and Factor Income from the Rest of the World.
a) Primary Incomes These are payable out of the value added created by production. They include compensation of employees , property incomes (interests, dividends,) and taxes on production and imports net of subsidies.
b) Factor Incomes These are payments as a result of the use of factors of production (labour, capital and land).
c) Rest of the World Refers to all non -resident institutional units that enter into transactions with resident units or have other economic links with resident units.
5 Concepts and Definitions
1.21 Value Added It is the measure of the additional value created by a process of Production in the economy for the reference period.
a) Gross Value Added The value of output minus the value of intermediate consumption; it is a measure of the contribution to GDP made by individual producer, industry or sector.
b) Net Value Added It is the value of output less the values of both intermediate consumption and consumption of fixed capital.
1.22 Goods and Services a) Goods These are physical objects for which a demand exists . The ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets. It includes goods for own consumption.
b) Services These are heterogeneous outputs produced on demand. Typically consist of changes in conditions of the consuming units realized by the activities of prod ucers at the demand of the consumers. Services are not separate entities over which ownership rights can be established. They cannot be traded separately from their production.
1.23 Subsistence Production Refers to the value of goods and services produce d at small scale and used by the producers themselves without exchange for money.
1.24 Stocks Stocks are a position in, or holdings of, assets and liabilities at a point in time and the System records stocks in accounts, usually referred to as balance s heets, and tables at the beginning and end of the accounting period; stocks result from the accumulation of prior transactions other flows in the period (note that stocks of goods are referred to as “inventories” in the System).
1.25 Subsidies Subsidies are current unrequited payments that government units, including non -resident government units, make to enterprises on the basis of the levels of their production activities or the quantities or values of the goods or services, which they produce, sell or import.
6 Concepts and Definitions
1.26 Other subsidies on production Other subsidies on production consist of subsidies, except subsidies on products, which resident enterprises may receive as a consequence of engaging in production (eg, subsidies on payroll or workforce or subsidies to reduce pollution).
1.27 Other subsidies on products Other subsidies on products consist of subsidies on goods or services produced as the outputs of resident enterprises that become payable as a result of the production, sale, transfer, leasing o r delivery of those goods or services, or as a result of their use for own consumption or own capital formation; there are three broad categories: (1) subsidies on products used domestically, (2) losses of government trading organisations, and (3) subsidie s to public corporations and quasi-corporations.
1.28 Export subsidies Export subsidies consist of all subsidies on goods and services that become payable to resident producers when the goods leave the economic territory or when the services are delivere d to non-resident units; they include direct subsidies on exports, losses of government trading enterprises in respect of trade with non-residents, and subsidies resulting from multiple exchange rates.
1.29 Output Output consists of those goods or services that are produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use.
1.30 National Disposable Income:
Refers to Gross National Income at market prices less current transfers, in cash or in kind
between resident and non -resident institutional units. Gross or net national disposable income
may be derived from gross or net national Income by:
Adding all current transfers in cash or in kind receivable by resident
Institutional units from non - resident units; and subtracting all Current transfers in cash
or in kind payable by resident institutional to Non-resident units.
a) Transfers Refers to transactions between one institutional unit and another unit without exchange of goods, services or assets in return.
7 Concepts and Definitions
b) Residence Is a center of economic interest in the economic territory of that country. Residence is not based on nationality or legal criteria. The residency status of producers determines the limits of d omestic production and affects the measurement of gross domestic product and many flows in the system.
1.31 Capital transfers Capital transfers are transactions in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, in which cash is transferred to enable the recipient to acquire another asset or in which the funds realised by the disposal of another asset are transferred.
1.32 Current transfers Current transfers consist of all transfer s that are not transfers of capital; they directly affect the level of disposable income and should influence the consumption of goods or services.
1.33 Gross National Disposable Income Is equivalent to GNI plus all secondary income in cash or in kind re ceivable by resident institutional units from the rest of the world, less all secondary income in cash or in kind payable by resident institutional units to the rest of the world.
1.34 Property Income Refers to the income receivable by the owner of a fi nancial asset or a tangible non -produced asset in return for providing funds to or putting a tangible non -produced asset at the disposal of another, institutional unit.
1.35 Final Consumption Expenditure Refers to transactions on final consumption of goo ds and services by the household and the government in the economy during a reference period.
1.36 Final consumption expenditure of government Government final consumption expenditure consists of expenditure, including imputed expenditure, incurred by general government in both individual consumption goods and services and collective consumption services.
1.37 Final consumption expenditure of households Household final consumption expenditure consists of the expenditure, including imputed expenditure, incurred by residence households on individual consumption of goods and services, including those sold at prices that are not economically significant.
8 Concepts and Definitions
1.38 Final consumption expenditure of NPISHs Final consumption expenditure of NPISHs consists o f expenditure, including imputed expenditure incurred by resident NPISHs on individual consumption of goods and services.
1.39 Compensation of Employees
Refers to total remuneration in cash or in kind, payable by an enterprise to employees in return
for work done by the latter during the accounting period.
1.40 Wages and Salaries in cash Refers to the total remuneration in cash payable by an enterprise to an employee in return for work done during the accounting period.
1.41 Wages and Salaries in kind Refers to the total remuneration in cash payable by an enterprise to an employee in return for work done during the accounting period but payments are made in kind. For example food, accommodation and travel.
1.42 Intermediate Consumption Refers t o the value of the goods and services used as inputs in the process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital; the goods or services may be either transformed or used up by the production process.
1.43 Actual Final Consumption of Households Is the value of consumption goods and services acquired by households, whether by purchase in general, or by transfer from government units or NPISHs, and used by them for the satisfaction of their needs and wants; it is derived from final consumption expenditure by adding the value of social transfers in kind receivable.
1.44 Gross Fixed Capital Formation Is measured by the total value of producer’s acquisitions, less disposals, of fixed assets during the accounting period plus certain additions to the value of non - produced assets (such as subsoil assets or major improvements in the quantity, quality or productivity of land) realized by productive activity of institutional units.
1.45 Acquisitions Goods and services are acquired by institutional units when they become the new owners of the goods or when the delivery of services to them is completed.
9 Concepts and Definitions
1.46 Changes in Inventories Changes in inventories (including work - in –progress) consists of changes in: a) stocks of outputs that are still held by the units that produced them prior to their being processed, sold, delivered to other units or used in other ways; and b) stocks of products acquired from other units that are intended to be used for intermediate c onsumption or for resale without further processing; they are measured by the value of the entries into inventories less the value of withdrawals and the value of any recurrent losses of goods held in inventories.
1.47 Gross Capital Formation Is measure d by total value of the gross fixed capital formation, changes in inventories and acquisitions less disposals of valuables for a unit or sector.
1.48 Acquisitions of Non-financial Assets It is equal to Acquisitions of total non financial assets less Cons umption of fixed capital. Net acquisitions are partly actual purchases and sales of goods, but also reflect internal transactions of the producers. In practice, changes in inventories of goods in general are determined as total supply less total other uses of each good and subsequently summed over all goods.
1.49 Exports of Goods and Services Consists of sales, barter, or gifts or grants, of goods and services from residents to non residents; the treatment of exports and accounts as described in the Balance of Payments Manual.
1.49.1 Exports of goods Exports of goods consist of exports of the following items from residents to non -residents, generally with a change of ownership being involved: general merchandise, goods for processing, goods procured in do mestic ports by nonresident carriers, and non -monetary gold.
1.49.2 Exports of services Exports of services consist of the following services provided by residents to non -residents: transportation; travel; communications; construction; insurance; financia l; computer and information; royalties and licence fees; other business services; personal, cultural, and recreational services; and government services n.e.c.
1.50 Imports of Goods and Services Consists of purchases, barter, or receipts of gifts, or grants, of goods and services by residents from non residents; the treatment of exports and imports in the SNA is generally identical with that in the balance of payments accounts as described in the Balance of Payments Manual.
10 Concepts and Definitions
1.51 Imports of goods Imports of goods consist of imports of the following items from non -residents to residents, generally with a change of ownership being involved: general merchandise, goods for processing, goods procured in foreign ports by domestic carriers, and non-monetary gold.
1.52 Imports of services Imports of services consist of the following services purchased by residents from non -residents: transportation; travel; communications; construction; insurance; financial; computer and information; royalties and licence fees; other business services; personal, cultural, and recreational services; and government services n.e.c.
1.53 Cost, Insurance and Freight Price (c.i.f) The c.i.f. price (i.e. cost, insurance and freight price) is the price of a good delivered at the frontier of the importing country, including any insurance and freight charges incurred to that point, or the price of a service delivered to a resident, before the payment of any import duties or other taxes on imports or trade and transport margins within the country.
1.54 Free on board price (F.o.b) The f.o.b. price (free on board price) is the c.i.f. price less the costs of transportation and insurance charges, between the customs frontier of the exporting (importing) country and that of the importing (exporting) country.
1.55 Operating Surplus Operating surplus or mixed income is a measure of the surplus accruing from processes of production before deducting any explicit or implicit interest charges, rent or other property incomes payable on the financial assets, or tangible non produced assets borrowed or rented by enterprise.
1.56 Fixed Assets and Consumption of Fixed Capital Refers to the reduction in the value of fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence or normal accidental damage.
a) Fixed Assets Are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly or continuously in other proces ses of production for more than one year.
11 Concepts and Definitions
b) Consumption of Fixed Capital Refers to the decline in the current value of stock of fixed assets as a result of physical deterioration, normal obsolescence or normal accidental damage.
1.57 Non-financial assets Non-financial assets are entities, over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them over a period of time, that consist of tangible assets, both produced and non -produced, and most intangible assets for which no corresponding liabilities are recorded.
1.58 Non-produced assets
Non-produced assets are non -financial assets that come into existence other than through
processes of production. Non -profit institutions serving households (NPISHs) consist of NPIs
which are not financed and controlled by government and which provide goods or services to
households free or at prices that are not economically significant
1.59 Valuables Valuables are produced assets that are not used primarily for production or consumption, that are expected to appreciate or at least not to decline in real value, that do not deteriorate over time under normal conditions and that are acquired and held primarily as stores of value.
1.60 Basic Price It is the price receivable by a producer exclusive of taxes on the product and inclusive of subsidies on the product.
1.61 Producers’ Price It is the price receivable by a producer inclusive of ta xes on the product (but not Value Added Tax) and exclusive of subsidies on the product.
1.62 Purchasers’ Price Refers to the price paid by the purchaser, excluding any deductible tax, in order to take delivery of a unit of a good or service at the time a nd place required by the purchaser. The purchaser’s price of a good includes any transport charges paid separately by the purchaser to take delivery at the required time and place.
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1.63 Financial Intermediation It is a productive activity in which an ins titutional unit incurs liabilities on its own account for the purpose of acquiring financial assets by engaging in financial transactions on the market.
1.64 Financial intermediation services indirectly measured Financial intermediation service indirectly measured (FISIM) is an indirect measure of the value of financial intermediation services provided but for which financial institutions do not charge explicitly.
1.65 Social Accounting Matrix (SAM) It is a square matrix consisting of rows and columns a ccounts that represent different sectors, agents, and institutions of an economy at the desired level of desegregation. The SAM is a useful framework for consistent multi -sectoral economic data preparation, represents the expenditure - receipt flows among al l actors and sectors of the entire economy, capturing both input -output and national income and product data.
It contains detailed information about the incomes and expenditures/outlays of institutions (household groups, enterprises/companies, government s and relevant accounts of the rest of the world); and about the production structure i.e. the input -output (I-O) structure of production in the economy.
13 Concepts and Definitions
Figure 1.1 General Structure of A Macroeconomic Social Accounting Matrix
Activities Commodities Factors Households
& Firms Government Savings
Investment
Rest of the
World
Activities
D
Domestic
Supply
E
Export
Commodities
C
Private
Consumptio
G
Government
Consumptio
I
Investment
Demand
Factors
Y
Value-
added
Households &
Firms
Y
Household
Income
Government TX
Indirect Tax
TH
Income Tax
Savings
Investment
SH
Private
Saving
SG
Government
Saving
SF
Foreign
Saving
Rest of the
World
M
Imports
R
E
C
EI
P
T
S
PAYMENTS
Key: Y = Value-added (GDP at basic prices/ factor costs) TX = Indirect production tax D = Domestic supply M = Imports (c.i.f.) C = Final private consumption TH = Income taxes SH = Domestic private savings G = Government consumption SG = Government savings I = Investment demand E = Exports (f.o.b.) SF = Foreign savings
The designing and structure of any SAM depends on the socio -economic structure of an economy, policy needs, and data availability.
1.66 Input-Output Table It is a tabula r summary of the flows of goods and services between industries and final demand of an economy with the output of each sector being the inputs of the other sectors. It is an
14 Concepts and Definitions
important analytical tool for analyzing the structure of production in an economy. It also shows the relationship between inputs of raw materials and output of final product.
1.67 Supply and Use Tables These are tables in the form of matrices that record how supplies of different kinds of goods and services originate from domestic ind ustries and imports and how those supplies are allocated between various intermediate or final uses, including exports.
1.68 Value Added Tax (VAT) It is a consumption tax charged on all taxable goods and services. It is a multi-stage tax levied on the difference between a commodity’s price before taxes and its production cost at each stage of production and distribution up to the retail stage. It is also levied on taxable imports.
1.69 Taxes on products Taxes on products, excluding VAT, import and expo rt taxes, consist of taxes on goods and services that become payable as a result of the production, sale, transfer, leasing or delivery of those goods or services, or as a result of their use for own consumption or own capital formation.
1.70 Taxes on production and imports Taxes on production consist of taxes payable on goods and services when they are produced, delivered, sold, transferred or otherwise disposed of by their producers plus other taxes on production, consisting mainly of taxes on the owner ship or use of land, buildings or other assets used in production or on the labour employed, or compensation of employees paid.
1.71 Taxes and duties on imports Taxes and duties on imports, excluding VAT, consist of taxes on goods and services that become payable at the moment when the goods cross the national or customs frontiers of the economic territory or when the services are delivered by non -resident producers to resident institutional units.
1.72 Deductible VAT Deductible VAT is the amount of VAT payable on purchases of goods or services intended for intermediate consumption, gross fixed capital formation or for resale which a producer is permitted to deduct from his own VAT liability to the government in respect of VAT invoiced to his customers.
15 Concepts and Definitions
1.73 Non-deductible VAT Non-deductible VAT is the VAT payable by a purchaser which is not deductible from his own VAT liability, if any.
1.74 Export taxes Export taxes are taxes on goods or services that become payable when the goods leave the economic territory or whe n the services are delivered to non -residents; they include export duties, profits of export monopolies and taxes resulting from multiple exchange rates.
1.75 Import Duty Is levied at fixed rate on the Cost, Insurance and Freight (CIF) value of goods imported into the country.
1.76 Public Sector The public sector is comprised of government and parastatal sub -sectors. It includes establishments under the central, regional or local governments and other government institutions.
1.77 Private Sector The private sector comprises formal and informal establishments, which are not part of Government. These establishments can be individual, joint or cooperatives.
1.78 Production Sector These are sectors, which produce goods such as agricul ture, manufacturing, mining and quarrying, electricity, and water.
1.79 Service Sector These are sectors, which renders services such as trade, transport, communication, public administration, finance and other business.
1.80 Additional Concepts The three methods (approaches) used for calculating Gross Domestic Product (GDP) according to the System of National Accounts (SNA) are Product approach, Expenditure approach and Income approaches.
16 Concepts and Definitions
Product approach is aggregated based on the production accounts. GDP is Sum of Gross Value Added of all industries (or all activities) PLUS Taxes on products LESS Subsidies on products.
Income approach, which is aggregated based on the generation of income accounts. GDP is sum of Compensation of employees Operat ing surplus Consumption of fixed capital Taxes on products net subsidy.
Expenditure approach, which is aggregated based on the goods and services accounts.
GDP as sum of expenditure categories:
Government final consumption expenditure
Household final consumption expenditure
Change in inventories
Gross fixed capital formation
Export of goods and services
LESS
Import of goods and services.
National Accounts of Tanzania is mainly complied using product and expenditure approaches.
17 Concepts and Definitions
CHAPTER TWO
TAX STATISTICS
Tax is a compulsory levy or charge imposed by the state on her citizens or non -citizens that is usually payable in monetary terms. Taxes are compulsory financial contributions to state revenue made by a person or body of persons towards workers’ income and business profits or added to the cost of some goods, services and transactions expenditure of a public authority.
Tax Statistics refers to the data that are related to taxes collected by the authorized institutions in the country.
2.0 Types of Taxes Basically, there are two types of taxes namely, Direct and Indirect Taxes. Each type is classified according to the legal and effective incidence to the final payer.
2.1 Direct Taxes These are taxes levied directly on people’s income from employme nt, business or ownership of property or investment. They include income tax, corporate tax, property tax, Pay as You Earn (PAYE), Basic Skills and Development Levy, Individual tax, withholding tax Rental and Gaming tax.
2.1.1 Imposition of Income Tax It is charged and payable for each year of income by every person who:- Has total income, which is the sum of employment, business and investment income;
Has a domestic permanent establishment that has repatriated income for the year of income; or
Receives final withholding payments for the year of income.
2.1.2 Corporate Tax It is levied on all the corporate taxable profits, accruing to all companies carrying on business in Tanzania. It is generally applied to a company' operating earnings, after expenses such as Cost of Goods sold (COGS), Selling General and Administrative expenses (SG&A) and depreciation have been deducted from a company revenues.
2.1.3 Individual Income Taxes
These refer to;
Tax charged to non -corporate payers who include sole traders (proprietors) taxed at
progressive individual income tax rates; and
18 Concepts and Definitions
Pay As You Earn (PAYE) which is a tax whereby a certain amount of money from employee’s gross emoluments is levied.
2.1.4 Taxation of small traders with and without complete records It is levied income tax on all small traders who operate mostly in the informal sector with and without their business records based on their annual business turnover.
2.1.5 Gains or Profits from Employment This is an income that an employee earns from an employment in the form of salary, which is payable on daily, weekly or monthly. It includes payments of wages, salary, payment in lieu of leave, fees, commissions, bonus and gratuities, payments of any personal allowance, payments providing any discharge or reimbursement of expenditure incurred by an individual or by an associate of an individual payment for an individual’s agreement to any conditions of the employment. Contributions made on behalf of the employee to retirement funds and retirement payments m ade directly to employees . Redundancy and other payments for loss or termination of employment relating to the year of payment and any benefits in kind.
2.1.6 Qualification of Benefits in Kind Benefits which an employer may decide to give to the employee. These include:- Motor Vehicle Benefit: Where an employee is provided with motor vehicle by an employer for personal use in return for employment rendered and the employer incurs all necessary expenses to maintain the vehicle then this is a taxable benefi t to the employee quantified annually.
Subsidized Loans: It is a loan to an employee provided by employer at no interest or at an interest rate that is below the statutory interest rate.
Provision of Housing: It is the value of housing provided to an emp loyee by the employer which is taxable benefit and is included in the employee’s monthly pay. The value of housing is calculated as the market value of renting that housing or 15 percent of the rest of the employee’s income from employment, whichever is less.
2.1.7 Gains or Profit from Business It is a person’s income from a business during a year. The following amounts derived from business are regarded as gains or profits and they are taxable:- Service fees; Incomings from trading stock (sales of business stocks); Gains from sale of business assets or liabilities; Sale of depreciable assets; Amounts derived as consideration for accepting a restriction on the capacity to conduct the business; and
19 Concepts and Definitions
Gifts and other payments received by the person in respect of a business.
2.1.8 Gains from investment Income from investment include:- Any dividend, distribution of a trust, gains from life insurance, gains from an interest in an unapproved retirement fund, interest, natural resources payment, rent, or royalty;
Net gains from realization of investment assets (Capital gains); and
Amounts derived as a consideration for accepting a restriction on the capacity to
conduct the investment.
2.1.9 Losses from Business or Investments The income tax law provides the treatment of unrelieved losses as follows:- When computing income from business or investments during any year of income and a loss is incurred which becomes unrelieved loss, the law allows it to be carried forward and offset against future business income as the case may be, until the whole unrelieved loss is exhausted;
A person is allowed to deduct a foreign loss from investment only in calculating the person’s income from foreign source investment;
A person is allowed to deduct losses other than foreign lo sses from investments only in calculating the person’s income from investments;
In case of foreign business, loss is allowed only in calculating the foreign business income; and
In case of a loss incurred in agricultural business it is allowed only in calculating the person’s income from agricultural business.
2.1.10 Payment of Tax by Installments
Single Installments: Is a payment of income tax by single installment required from
any person who derives a gain in conducting investments from realization of interest in
land or buildings situated in Tanzania.
A rate of 10 and 20 percent of the gain for a resident and nonresident person
respectively, is required to pay income tax by single installment. Payment by single
installment also applies in case of no n-resident person who receives a payment in
conducting a business of land, sea, or air transport or chartered (without having a
domestic permanent establishment in Tanzania) which evolves the carriage of
passengers who embarked or cargo, mail or other move able tangible assets that are
embarked in Tanzania and which are not for transit, the payer is required to withhold 5
percent of the gross payments before the proper before the proper vessel, vehicle or
aircraft is allowed to leave from Tanzania.
20 Concepts and Definitions
Quarterly Installments: It is a payment required from business or investments during the year of income at the end of each three -month period commencing at the beginning of the year of income and a final installment on the last day of the year of the income.
2.2 Indirect Taxes (Consumption Taxes) These are taxes based on consumption. Categorically they are divided into consumption taxes, other domestic taxes and International trade taxes. Examples of such taxes are like Import Duty, Excise Duty and Value Added Tax (VAT). By definition the legal incidence of the tax falls on the trader who act as a collection agent of the Government while the effective incidence falls on the final consumer of goods or service who eventually pays the tax.
2.2.1 Value-Added Tax (VAT) It is a consumption tax charged on all taxable goods and services at a standard rate of 18 percent. It is a multi -stage tax levied on the difference between a commodity’s price before taxes and its production cost at each stage of production and distri bution up to the retail stage. It is also levied on taxable imports made by person whether or not registered for VAT.
2.2.2 Excise Duty (Local) It is levied on certain locally manufactured goods and services such as soft drinks, beer, wines, spirit, mobi le phone services, plastic shopping bags, satellite television services, cigarettes and petroleum products.
2.3 Value Added Tax on Imports It is levied on all goods and services imported into the country unless such goods and services are specifically ex empted under the VAT law. All importers must pay VAT regardless of whether or not they are registered for VAT. However, importers who are registered for VAT can claim as an input tax in their business, the VAT paid on the imported goods. However, for VAT on imported services the input tax is treated as reverse charge hence added to the value of the service.
2.4 Other Taxes
2.4.1 Skills and Development Levy (SDL) This tax is based on the total gross emoluments paid by an employer to employees (currently, at a rate of 6 percent). The gross emoluments include salary, wage, leave, pay, payment in lieu of leave, subsistence allowance, etc.
2.4.2 Stamp Duty Refers to the duty paid on certain legal instruments/transactions, affidavit, conveyance and lease Agreements. The duty rate is 1 percent based on the consideration applicable on non business persons when issuing a receipt whenever they sale their privately owned assets/properties. Stamp duty on conveyance of agricultural land is TShs 500/=.
21 Concepts and Definitions
2.4.3 Airport Service Charge Refers to charges levied on passengers who board an aircraft at any airport in Tanzania.
2.4.4 Port Service Charge Refers to charges levied on passengers who travel by a passenger shipping vessels at any port in Tanzania.
2.4.5 Motor Vehicle Registration and Transfer Tax Refers to charges levied when a person is registering/transfer fee a motor vehicle and motor cycle.
2.4.6 Motor Vehicle Annual License Fee It is charged on annual basis according to motor vehicle engine capacity. Note tha t: Tractors which are used sorely for agriculture are exempted from the annual license fee.
2.5 Custom Modernization Programme Refers to enhance efficiency and effectiveness in revenue collection at the same time facilitate s the international trade. Som e of the programs include; Post Clearance Audit, Destination Inspection Scheme, Computerized Risk Management System, Agreement on Customs Valuation and Compliant Traders Scheme.
2.5.1 Post Clearance Audit This is a trade facilitation tool where goods can be cleared prior to physical examination in Tanzania. The system verifies the accuracy of declaration through the examination of goods, records, business system and all relevant customs commercial data held by persons and companies directly or indirectly involved in international trade.
2.5.2 Destination Inspection Scheme (DSI) Is the verification of the importers’ declaration at the point of destination in Tanzania through certain procedures for the purposes of:- Determining the quality and quantity of goods imported; Establishing the value of goods as compared to the declaration made by the importer;
Establishing the country of origin and supplier; Determining the applicable customs tariff code under which the goods are to be classified and tax is computed; Providing TRA with Computerized Risk Management Database, which assist in determining levels of intervention and valuation process; and Enhancing security and international trade facilitation.
22 Concepts and Definitions
2.5.3 Computerized Risk Management System (CRMS) It identifies risks associated with each import transaction and determines the applicable level of intervention:- Low Risk: Goods covered by these transactions may be released without physical inspection.
Medium Risk: Consignments will be subjected to X -Ray sca nning. In case no discrepancy is detected such goods will be released without physical inspection.
High Risk: Transaction will be subjected to physical inspection by customs officers to determine compliance.
2.5.4 Agreement on Customs Valuation (ACV) It is the system of goods valuation known as Agreement on Customs Valuation (ACV). The system provides for use of price actually paid or payable for the goods and forbids the use of arbitrary and fictitious values. This is part of Tanzania’s obligation to imp lement World Trade Organization (WTO) agreement to which Tanzania is a signatory.
2.5.5 Compliant Traders Scheme This scheme allows the audit exercise to be carried after the goods have been cleared. The scheme was introduced with a view of facilitating t rade through speed clearance of imported goods.
2.6 Tax Incentives
2.6.1 Import Duty It is a relief on the payment of import duty tax for goods and services imported in Tanzania. It is based on the value of goods, the weight, dimensions, or other criter ia of the item such as its size. The exempted from import duty include all importers of raw materials, electronic cash registers, replacement parts, inputs for manufacturing agricultural equipment, inputs for horticulture and agriculture, hotel equipment, computer software, packing materials for manufacturing medicaments and solar equipment and accessories.
2.6.2 Import Duty Drawback It is a scheme, which allows exporters to claim refund of import duties paid on raw materials and other inputs used in the production of goods that are exported from Tanzania. This scheme is used as a measure to remove fiscal obstacles to export development. It include s inputs used in production process that do not form part of the qualified product e.g. catalysts and some other chemical agents.
2.6.3 Withholding Tax on Dividends and Interest It refers to taxes paid by investors with incentive certificates.
23 Concepts and Definitions
2.6.4 Export Processing Zone (EPZ) It is an area where goods processed or manufactured are exempted from import duty a nd other taxes.
2.7 Local Government Taxes Tanzania has two -tier system of Government that is the Central Government and the Local Government, which is at the District, Town, Municipal or City level. Most of the Local Government Authorities collect taxes , fees and levies in: Property Tax, Service Levy, Hotel Levy or Guest House Levy, Slaughtering Fees, Billboards and Sign Fees, Market Fees, Trading License Fees, and Liquor License Fees.
2.7.1 Property Tax It is charged to owners of properties. Is an important source of revenue for urban councils in Tanzania. Some properties like museums, places of worships, aerodromes and land used for sporting purposes, properties of charitable and educational institutions are exempted from property tax. The rate of the tax is fixed by the local authority (The Councilors) through enacting by-laws depending on the value and location of the property.
2.7.2 Service Levy This levy is charged on the value of goods manufactured by local industries. It is mainly for urban local authorities and it replaces the industrial cess. All corporate entities, which pay the service levy, are exempted from paying agricultural produce cess. Currently, the levy is charged at a rate of 0.3 percent of the turnover net of VAT for corporate entities
2.7.3 Other taxes and Fees Most of local authorities charge and collect fees from different sources such as local markets and stores, slaughtering activities, burial services, billboards and sign fees and liquor fees.
2.7.4 Subsidies It is the funds from Central Government allocated to support the budget for Local Governments recurrent and development expenditures.
24 Concepts and Definitions PART TWO: SOCIAL SERVICES SECTOR
CHAPTER THREE
DEMOGRAPHIC STATISTICS
Demography is concerned with the description, analysis and understanding of population phenomena. It can therefore be extended to include and to cover the social, economic, historical and political characteristics of the population and related demographic process.
Demographic statistics seek mathematical and statistical descriptions of human population.
3.1 Fertility Fertility refers to the number of live births women would have during their reproductive age (15- 49 years). It differs from fecundity, which refers to the physiological capability of women to reproduce.
It is measured by using some of the following indicators
3.1.1 Crude Birth Rate (CBR)
It is the number of live births in a calendar year per 1,000 mid year population.
000 ,1 population year Current year calender a in births of Number CBR
3.1.2 General Fertility Rate (GFR)
It is the number of live births per 1,000 women in the 15-49 years age group in a given year.
000 ,1 49 15 years women of population year Mid year calender a in births of Number GFR
3.1.3 Age-Specific Fertility Rate (ASFR) It is the number of live births to women in the specific age group per 1,000 women in that specific age group in a given year. For example:
000 ,1 24 20 24 20 ) 24 20 ( aged women Number aged women to births live of Number ASFR