The Tanzanian government has announced the reversal of several tax decisions after consultations with business representatives and amidst pressure from traders in the Kariakoo market. This decision follows an extraordinary meeting held on Monday, where major traders temporarily closed their shops in protest against proposed financial measures for the upcoming fiscal year 2024/25.
The protest, initially intended for Kariakoo market in Dar es Salaam, quickly spread to other regions including Mbeya, Iringa, Ruvuma, Rukwa, Mwanza, and Arusha. Traders expressed discontent with the new tax legislation and other related issues, prompting the government to seek a consensus with their representatives.
Speaking to reporters in Dodoma on June 24th, Minister of Planning and Investment, Prof. Kitila Mkumbo, announced the government’s decisions in response to the concerns raised. He confirmed that the Tanzania Revenue Authority (TRA) would indefinitely suspend the inspection of Electronic Fiscal Device (EFD) receipts and VAT returns at the Kariakoo Regional office. This move aims to alleviate immediate pressures while TRA prepares a revised system for verifying receipts, although specific timelines for its implementation were not disclosed.
Furthermore, Minister Mkumbo outlined plans for a comprehensive review of tax calculation legislation, particularly focusing on assessments applied to imported goods at ports of entry. The government aims to ensure these calculations do not unfairly burden traders.
Highlighting the ongoing legislative process, Minister Mkumbo emphasized that the Financial Bill is still pending approval for its second reading. He encouraged public engagement and input to refine the proposed tax measures, underscoring the government’s commitment to a fair and transparent tax framework that supports both revenue objectives and the operational needs of businesses.
Ministers involved in the discussions included Dr. Mwigulu Nchemba (Finance), Dr. Ashatu Kijaji (Industry and Trade), and Attorney General Judge Eliezer Feleshi, signaling a coordinated governmental approach to address the market concerns.
In response to assurances sought by traders, Dar es Salaam Regional Commissioner Albert Chalamila affirmed the government’s commitment to safeguarding traders who choose to reopen their shops. He also issued warnings to individuals threatening harm to stores defying the strike, pledging that all grievances submitted by traders would be duly addressed by the authorities.
The developments underscore a pivotal moment in Tanzanian fiscal policy, reflecting the government’s responsiveness to public feedback and its dedication to fostering a supportive environment for economic activity across various sectors.
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