President
John Magufuli has reduced pay as you Earn (paye) charged on salaries
from 11 percent to nine percent. Dr Magufuli said it today when
addressing the May day celebrations in Dodoma that the move aims at
alleviating a burden which workers in the country carry.
He
said while businessmen have been evading taxes, workers have been
faithful in paying the tax because it was directly taken from their
salaries. He said that as he continues to fight against ghost workers
and corruption, he will continue to work on improving workers welfare.
“I
promised during my campaign to reduce pay as you ear tax to single
digit. Now I declare to reduce it from 11 percent to nine percent. I
know this percentage will create a gap in our revenue, but we shall see
how to fill it,” said President Magufuli.
On
the other hand, President Magufuli expressed his intention to continue
dealing with ghost workers menace. He told the gathering at Jamhuri
stadium that as of yesterday the number of ghost workers has reached
10,295, consuming more than Sh.11bn in pay each year. He vowed crackdown
on them.
The
President also has directed employers countrywide to give contracts to
their workers and pay their contributions to social security fund
promptly.
