An interesting story from Tanzania of small shops closing kwa sababu ya tax. Can you relate?

148 businesses in Njombe closed in 90 days


[ATTACH=full]361137[/ATTACH] maduka

But in a quick rejoinder, Tanzania Revenues Authority (TRA) said yesterday that the existing tax regime is practised everywhere else in the world

Njombe. More than 140 businesses have been closed in Njombe Region over the past three months from January to March 31, 2021 due to various reasons, including bad debts.

This was stated by the Assistant Manager of the Tanzania Revenue Authority (TRA) Njombe region, George Mapunda at a meeting of the regional advisory committee (RCC) held in Njombe.

He said many businesses have had little understanding of tax issues, despite the authority having a taxpayer education unit and have been passing through various areas to provide such education.

“The teams from headquarters and the one here went door to door to educate the public. They went to Ludewa, Makambako and Njombe and the schedule for visiting our stakeholders is still there, ”said Mapunda.

He said small businesses are taxed according to the sales record which is legal, so when they sell and use EFD machines they can determine the amount of tax they are entitled to pay without interruption.

However, he said that in the event that a businessman is not satisfied with the tax estimates given to him he should go to higher levels where the problem will be resolved.

“Let’s make this clear, TRA does not close anyone’s business, there are people who owe the authority but we have not closed their business, what we do is we call you we sit at the table and then we enter into an agreement to pay in installments, ”said Mapunda.

Njombe Regional Commissioner, Engineer Marwa Rubirya urged the TRA in the region to adhere to the directives issued by President Samia Suluhu Hassan to collect taxes professionally.

He said the authority had a legal obligation to ensure that they encourage the collection of taxes from traders voluntarily without resorting to force and that the education provided should continue to build awareness.

Saa hii ndio they are trying a system like iTax and ETR? 10 years late as usual.

For us Kenyans the ETR new system will be online like the one used by big companies. At real time KRA knows your sales and its tax. Soon to be effected to all vendors. Nikubaya

I thought Madame Suluhu said people should not be harassed by TRA?

My wonderment is, what would be the end game for tax collectors if all tax payers closed their businesses like the people of Njombe?

Gulags. Your tax payment to the state will be by providing forced labour in production.

Tanzania TRA had its ETR system online in 2009. We are the ones 12 years too late.

As mtu amefanya finance being taxed on sales should be illegal. One should be taxed after all expenses are removed.

It will be hard but thats a step in the right direction. It should be a requirement that any business engaged in sales have an automated sales recording system in place and if its online, the better

One major problem with implementing tax systems is discrimination. Some people are able to avoid paying taxes thus undercutting those who pay. You cannot compete. Wacha kila mtu alipe ndio tujue the lazy business people. Ukishindwa you close shop

Ever heard of VAT?

Ever known that VAT is paid by the consumer,

Are you sure you know anything about how VAT is calculated and paid? I am probably wasting my time on a troll

Are you sure you know that VAT is literally defined as a consumption tax?

Low IQ mongrel tema jaba, rudi shule ujifunze maneno ya VAT


He is right you know, its a consumer tax. Vat is ultimately borne by the consumer

And the beauty of a business having the VAT obligation is that it can be deducted from input after collecting from the consumer.

Yes, but then again many businesses suffer the vat burden because of bad debts and late customer payments. It affects cashflow/working capital

You are the low IQ in this case, the guy is speaking technical in his field, wewe ndio huelewi

Not necessarily as spoilt goods for example already have the VAT paid to the Government by the retailer.