Trade Mis-Invoicing: A Threat to Domestic Revenue in Tanzania

This policy brief highlights the significant threat trade mis-invoicing poses to Tanzania's domestic revenue. Trade mis-invoicing, the intentional manipulation of customs declarations to evade taxes and launder money, leads to an estimated annual loss of $1.87 billion in Tanzania. The practice undermines domestic revenue mobilization, stifles economic growth, and deprives the government of vital resources for infrastructure development and social services. To address this issue, the brief recommends the introduction of specific policies, enhanced tax information exchange, improved tax administration technology, and the implementation of beneficial ownership registries to ensure transparency and accountability.