Abstract

In recent years Tanzania has seen a rapid growth of its gold mining sector, the trend which has made the country the
third largest gold producer in Africa. This growth is attributed much to the favorable investment climate created by the
government for Multinational mining companies through the provision of various tax incentives and the ongoing
discovery of new mining locations. Although tax incentives are attributed much for the promising trend of the mining
sector, but, there is a controversy linking the granted incentives and the actual benefits the country realizes. The
provided tax incentives seem to be way too generous causing the country to lose substantial amount of much-needed tax
revenues. The practices of the incoming mining companies and local tax authorities are largely blamed for the ongoing
trend.

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