Tanzanian president John Magufuli Thursday gave a seven-day ultimatum to businessmen who have evaded tax to pay up or risk arrest and court charges as he intensified efforts to raise revenue to fund government budget.

Mr Magufuli said those who have not paid tax for whatever reason should voluntarily come forward or face the long arm of the law.

“Go and pay now so that we can leave you in peace. You can’t hide the containers like a needle. But when the ultimatum expires, stern legal measures will be taken against all those who will have failed to cooperate,” he said during a State House meeting with members of the country's business community.

The President spoke as Prime Minister Majaliwa Kassim Majaliwa separately revealed that more than 2,300 containers had been cleared from the Dar es Salaam port without the payment necessary duties since March 2014.

Dr Magufuli told the delegation that he was acting in order to collect sufficient revenue to fund local development as currently available cash was only being spent on recurrent expenditure such as payment of salaries and on government operations.

Budgetary shortfall

Revealing the dire financial situation in which his administration finds itself, the president said that not a single cent had been released for development projects since the current budget was approved in June. He said he had only this month released some Tsh120 billion ($57.5 million) as the first payment for development budget.

“You know, it could be we are being hard on some of you, but all we need is the money to drive the economy and build the nation together. I urge you to pay your taxes, apply for another business opportunity and you will be granted,” said Dr Magufuli as he appealed for support from members of the business community.

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