Johnson Minja, Tanzania Business Community Chairman
.....
Businesses won two demands at ago yesterday after
the government accepted to review the Value Added Tax (VAT) Act and
temporarily put on hold the use of Electronic Fiscal Devices (EFDs).
The government’s move came after the end of weeklong protests –
leading to closure of many shops in some country’s leading cities and
municipalities last week.
The protests first started in Mwanza City, where traders closed
shop, followed by Morogoro Municipality and later in Dar es Salaam
where, the leading East African trading hub of Kariakoo, had many of its
businesses shut for a week.
The demands hinged on two things—the long time complaints that the
VAT which is perched at whopping 18 percent was too high and should be
reduced and the use of EFDs which they wanted put on hold pending the
review of the law.
“While still protesting, we decided to go to Dodoma on Saturday
last week. We were joined by the traders’ leaders from other regions and
managed to meet with Deputy Finance minister Mwigulu Nchemba,” Tanzania
Business Community Chairman Johnson Minja told a news conference in Dar
es Salaam yesterday.
“The minister told us that the ministry expresses sympathy with
our complaints and therefore the law would be reviewed,” he said.
He said the minister ordered the traders to end the protests and
open their shop even if they do not have the electronic gadgets.
“The deputy minister ordered that whether we have the machines or
not we open the shops and resume the business as discussions between us
and the government continued,” he said.
But when contacted for comment, Tanzania Revenue Authority (TRA) Director of
Education and Taxpayers’ Services Richard Kayombo told The Guardian
that they have not received any communication from the ministry on the
new development.
“We are yet to get any communication from the minister and in this
case we shall continue implementing the laws on VAT and the use of EFDs
until when directed otherwise,” Kayombo noted.
Finance ministry Permanent Secretary Servacius Likwelile told The
Guardian yesterday that it was true that the VAT Act would be discussed
during the October Parliament session in Dodoma.
“It is true that the VAT Act will be discussed during the coming
Parliament session and possibly be reviewed,” he said, and hung up
before responding to another question.
Efforts to get comments from the concerned deputy minister Nchemba proved futile as he could not be reached on the phone.
However, Finance minister Saada Mkuya contradicted the business
community as well as her Permanent Secretary saying she stood by the law
which should be respected for now as the government worked on the
review of the Acts.
“The government will continue implementing the VAT law and the use
of EFDs. The traders should keep on using the gadgets,” she said before
she immediately hung up.
A survey around Karikoo market by this paper saw most of the shops
wide open and it was business as usual. In fact many shops were still
issuing handbook receipts to clients instead of electronic ones.
SOURCE:
THE GUARDIAN
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