Real Property Taxation in Tanzania: Reflections from Dar es Salaam City

Abstract

Property tax has great potential of becoming a major source of revenue for urban local authorities in Tanzania it is generally acknowledged that property tax is capable of generating the bulk of locally generated revenue.  However, urban local authorities in Tanzania have not succeeded in utilising this potential optimally.  This article is an overview of property taxation practice in Tanzania.  It highlights some procedures with respect to the key components of property tax administration in the context of the local authorities, and brings out a number of property tax issues.  It argues that despite the revenue potential inherent in property tax, it is considerably undermined by policy and administrative problems that call for intervention.  In conclusion some possible measures are suggested.