Africa-Press – Tanzania. TANZANIA Revenue Authority (TRA) yesterday launched a tax education campaign targeting online businesses, ahead of the implementation of a new directive to impose taxes on digital enterprises, particularly those offering accommodation services, effective from September 1 this year.
TRA Commissioner General, Yusuph Mwenda, acknowledged that although the deadline was set for August 31, there have been concerns raised about the limited timeframe, with some stakeholders requesting an extension.
He clarified that TRA will enforce the directive as instructed, following amendments to Section 51 of the Tax Act, which will officially take effect on September 1.
The taxman said property owners using platforms like Booking.com, Airbnb, Expedia, Agoda and digital advertising businesses will be required to pay tax as directed with exemption primarily to small scale traders conducting their business using digital platforms.
Mr Mwenda said that TRA has extended the period for small scale online businesses, allowing them the opportunity to receive adequate education, participate in seminars and register to TCRA, of which the entire process will be taking place online.
“We have no intention of shutting down businesses. Our role is to enable businesses. Where you encounter challenges in making profits, it is our duty to assist you in continuing your operations,” said Mr Mwenda.
He further specified that TRA is prepared to utilise technology to identify all online businesses and will encourage consumers to report to the authorities when they do not receive receipts, with accurate information rewarded with three per cent of the redeemed tax.
“The goal is to empower and formalise your businesses so that you can access loans, avoid exploitation and compete internationally,” he added. Mr Mwenda explained that the initiative aims to broaden the tax collection base to reduce complaints regarding tax rates and establish stable standards so as to enable the government to continue funding services efficiently.
Regarding complaints about Electronic Fiscal Device (EFD) receipts, he encouraged the use of a new Virtual Fiscal Device (VFD), an online system that uses mobile applications, which is much simpler for issuing electronic receipts and invoices.
In response to complaints from some East African Community (EAC) member states regarding the prohibition of certain businesses for foreigners, Mr Mwenda said that the measure is aimed at protecting Tanzanian businesses and local industries.
Meanwhile, the Tanzania Communications Regulatory Authority (TCRA) Director for Licensing and Monitoring, John Daffa said that the communication sector is a vital tool in the digital economy, adding that TCRA will continue to issue licences and services to strengthen robust communication infrastructure, while collaborating with TRA to facilitate online businesses.
National Arts Council (BASATA) Executive Secretary Dr Kedmon Mapana expressed the council’s readiness to collaborate with TRA in educating the public, especially artists, content creators and social media influencers to formalise their work and pay taxes.
Moreover, the Kariakoo Business Community Chairman, Severin Mushi, urged TRA to invest more in taxpayer education starting from primary schools, calling on TCRA to ensure reliable internet service to avoid disruption.
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