Traders still protesting use of EFDs
Tue Sep 02, 2014
Barely three weeks after Tanzania Revenue Authority (TRA) reported increased revenue collections that it attributed to growing willingness of traders to use Electronic Fiscal Devices (EFDs), traders several major cities in the country have again closed shop in protest of the devices.
A survey conducted by The Guardian yesterday at Dar es Salaam’s international business center, Kariakoo, found over 90 per cent of the shops there closed and consumers left stranded.
A trader, who introduced himself by the single name of Mushi, said he (and the other traders) would not open their shops until the government withdraws the mandatory use of EFDs.
“When importing our goods, we pay huge taxes and now for every sell, we are again required to pay pay 18 per cent in value added tax…this is too much,” he lamented saying the taxes weigh heavily on their profits and dramatically raise their operation costs.
“For every 11,800/- we should pay 1,800/- in VAT, so at what price should we sell the goods to make any profits,” queried the traders.
“Remember, we employ people, we pay rent…to reduce expenses we are forced to reduce staff and this increases unemployment…nobody gains,” he lamented.
“I have no problems with the machines but the problem is TRA,” says another Kariakoo trader who opted for anonymity.
“If it uses force, traders will comply because VAT is paid by the last consumer who is the one who will feel the pinch of high prices,” he explained.
“Personally, I have failed to open my shop due to fear of the mob but I have bought the machine,” he revealed.
According to him, traders protesting against the EFDs do not have the required business licenses and other documents.
Kariakoo Business Community (JWK) advisor Johnson Minja said the traders’ representatives who are scheduled to meet the Regional Commissioner (RC), Said Meck Sadiki to discuss the matter.
A consumer, Sheila Bakar, said that if authorities do not respond to the protest, it will negatively affect the government, the traders, and the society at large.
“The government should take quick measures to resolve the matter...if the protests continue, there is a possibility that social-economic services are going to be affected in the country,” she said.
Commenting, Deputy Minister of Finance Adam Malima told this paper that the traders should not have closed their shops before discussions with the appropriate authorities were completed.
“I have heard that the traders have once again closed their shops while they have not even contacted the government…” he decried.
“We have created a bad habit of boycotting in everything instead of coming together at a roundtable to discuss issues and come up with solutions for the benefit of our country,” he observed.
According to him, at the last meeting with the traders early this year, the government invited traders for discussions in case of any problems related to the use of the gadgets but they have ignored the call.
Similarly, traders in Morogoro town have also closed their shops for fear of being arrested by Police and TRA who are looking for non-complying traders in the use of EFDs.
However, Chairman for small and medium enterprises in Morogoro, Ali Mamba said the closure of the shops has nothing to do with what is going on in Dar es Salaam.
Early last month, TRA Director of Education and Taxpayer Services, Richard Kayombo said the response to the use of machines by the business community’s is positive.
“We have had a number of workshops with members of the business community on the importance of the machines and the response is increasingly positive,” he said and added: “Though we do not have the exact figures, as to the increased value but more and more businesses are using EFDs and revenue collections are also increasing.”
SOURCE: IPPMEDIA
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