Consultant in legal fiscal impediment

Job Description

AGRI-CONNECT is a European Union funded Tanzania Government programme supporting development of tea, coffee, and horticulture value chains. The programme is implemented mainly by the Ministry of Agriculture (MoA) in the mainland and the Ministry of Agriculture, Irrigation, Natural Resources, and Livestock (MAINL) of the Revolutionary Government of Zanzibar. Other implementation linkages are Ministry of Finance and Planning (MoFP), PMO, Ministry of Trade Industries and Investment (MIT), and President’s Office – Regional Administration and Local Government (PO-RALG). Coordination and Implementation is supported through a Technical Assistance agreement with consortia of international companies: FCG Swedish Development, Sofreco, AFC and Frontline. AGRI-CONNECT envisions to contribute to inclusive economic growth, promote private sector development, and job creation in the agriculture sector as well as increasing food and nutrition security in Tanzania. The programmes areas of focus are on promotion of productivity, commercialization, and competitiveness of the three targeted value chains. Among the key interventions selected are the sector enablers and business environment.

Agriculture, and horticulture in particular, dominates the rural economy in Zanzibar making it an important contributor to local employment, food security and general community welfare. In Zanzibar horticultural production is dominated by small scale farmers however over the past decades the industry has slowly grown with more commercial small farms increasing to meet the demands of the growing tourism industry on the islands.

The RGOZ recognizes agriculture/horticulture as an important area requiring support to accelerate its growth. With the support of development partners such as AGRI-CONNECT the government is committed to institute a more favourable friendly environment to ensure sustainable growth and development of agriculture Industry

Fruits and vegetables on the global market has created a great export opportunity for the commercialization of horticulture. However, its potential is constrained by uncompetitive tax structure, unstable supply chains and lack of coordination between institutions and poor logistics amongst others. In order to support the commercialization of horticulture and increase international competitiveness there is a need to understand the financial impediments that are imposed by the current taxation regime and propose tax breaks or removal of certain levees that would encourage the horticulture subsector to grow.

The AGRI-CONNECT programme, which is funded by the European Union, proposes to sponsor this study which aims to address the impact of the legal and tax regimes facing the subsector and propose reforms and breaks that will promote commercialization and growth in the subsector.

The objective of this consultancy study is to assess the impact of the prevailing tax regime (tax instruments, taxes, levies, charges, administration, and coverage) on the growth of the Horticulture Value Chain.

The study involves the identification of the taxes and levies that are charged on horticultural production directly and indirectly and assess the impact these have on the subsector.

Under the direct supervision of the AGRI-CONNECT Technical Assistant in Zanzibar and the overall direction of the Team Leader of the AGRICONNECT Technical Assistant Team, the consultant shall be required to undertake the following tasks:

1. Tax Administration.

• Review the roles and purposes of taxes, levees and other charges throughout the horticulture value chain in Zanzibar.
• Evaluate the efficiency of administering the taxes and levees in relation to the multiple institutions involved and cumbersome mechanisms. Propose streamlining options for administering these charges and levees.
• Examine the rates and compare the equivalent charges on the mainland and other competing neighbouring countries

2. Direct taxes/ levies etc.

• Map out and quantify all taxes, levees and charges faced by the horticulture industry, including: taxes and levees on importation of inputs, on the sale of inputs, production operations including transportation and labour along the value chain.
• Map out and quantify the charges in internal and external marketing
• Assess the impact of these taxes and levees on the profit margin of various sizes of commercial farm and industries along the value chain

3. Indirect taxes

• Review the impact of indirect taxation on horticulture production, distribution, processing marketing

4. Prioritise the taxes, levees, charges that require removing, adjusting, or streamlining to support growth in the subsector and provide justification and economic benefits to the proposals made.

5. Prepare a concise report on the findings with proposals/recommendations for change, together with responsibilities and timelines to effect these changes.

The study will mainly be done through the review of key documents, interviews with Government Officials, Farmers, Private sector operators, including UWAMWIMA, TAHA, ZNCCI and other actors along the value chain as well as experts/officials dealing with support to horticultural production

1. Literature Review
2. Interviews
3. Quantitative and Qualitative techniques

The study shall be conducted and concluded within 20 man-days over a period of two months starting at the contracting of the consultant.

1. Short inception report demonstrating an understanding of the assignment, with work plan, schedule, and budget for travel.

2. PowerPoint Presentations for debriefings in progress meetings and validation

3. Draft and final reports

4. Validation minutes

• MSc degree in either economics, public sector finances, public sector law or equivalent.
• Five years’ experience in the establishing and reviewing of taxations, duties, and levees.
• Ten years expertise in the assessing the impact of regulations, duties, and levees on agriculture value chains.
• Experience in evaluating the overall cost and impact on gross margins along value chains.
• Five years’ experience in consultancy work for major donor organisations e.g., European Union.
• Experience in similar assignments in East and Southern Africa.
• Knowledge of the fiscal regimes of the horticulture value chain.
• Previous work in Tanzania and Zanzibar would be an advantage
• Working knowledge in Swahili would be an advantage

About the Organization

FCG Sweden is a consultancy company specialising in international development cooperation, with a focus on public sector reform, natural resource management, civil society strengthening, market development and evaluation.

www.fcg.fi/en/fcg-sweden