T is for tax: How we help our country grow

By Tracy Rabi

Hey, young nation-builders! It’s me again… Tracy. Today, we’re learning a word that sounds serious but is super important in the world of money: T is for Tax.

So… what is tax?

Simply put, tax is money that people and businesses give to the government to help run the country. It’s like everyone putting a little into one big pot so we can build roads, schools, hospitals—even playgrounds!

Let’s make it simple:

When you go to school and see desks, books, or uniforms in government schools—taxes helped pay for that.

When you walk on smooth roads or ride a dala dala without potholes… yup, taxes again!

Even electricity in streetlights and doctors in hospitals are often paid through taxes collected by the government.

So, who pays taxes?

Adults who work and earn money usually pay a part of their income as income tax.

Businesses pay taxes when they sell things or provide services.

And guess what? Even you help pay tax when you buy things like snacks or airtime. That’s called VAT (Value Added Tax), and it’s a small part of the price!

Why does it matter?

Because being a smart kidpreneur means understanding how the money cycle works. Paying taxes is a way to say, “I care about my country!” It shows responsibility and teamwork.

So next time your parent pays for something and says, “Umeongeza VAT?” (Did you add VAT?), smile and say:
“That’s helping Tanzania shine!”

Money is powerful, but when shared wisely, it’s magical.
Catch you next week for another word that’ll boost your business brainpower!

With love and learning,
Tracy

Tracy Rabi is a children's author and the founder of Kids Finance with Tracy and the Tanzania Youth Entrepreneurship Experience.