Contribution of Mining Sector and Challenges of Transfer Pricing in Tanzania

Foreign Direct Investment, Multinational Enterprises, Transfer Pricing, Mining sector

Abstract

In Tanzania, mining is one of the prominent sectors attracting valuable Foreign Direct Investment (FDI) while employing a good number of people. Despite its contribution to the economy, transfer pricing practices have been common resulting in revenue losses. This paper uses secondary data to discuss and show the extent to which this sector contributes to the economy and challenges associated with transfer pricing. The results reveal that major reforms made to the sector since the year 2015, especially in 2017, resulted in a significant contribution of the sector to the economy. There is also a strong correlation between the contributions of the mining sector to GDP.