AfricaPress-Tanzania: MBEYA Regional Commissioner, Albert Chalamila has advised the government to provide electronic receipt machines (EFD) to all traders in the country regardless of sales level to control tax evasion by some traders using existing laws.
RC Chalamila made the advice over the weekend when wrapping up training for community development officers from all the district councils in Njombe, and Katavi regions. The two-day training on microfinance services was organized by Bank of Tanzania (BoT).
He advised the Tanzania Revenue Authority (TRA), to change the tax estimating system for traders and that if possible they should not announce sales rates to a person eligible for tax exemption.
“The current tax laws create loopholes for businesses to evade taxes by ensuring that their sales do not exceed the required tax level,” the RC said.
He said the Value Added Tax (VAT) law exempts a trader whose sale does not reach 100m/- per annum and the EFD Machine Use Act provides a waiver to a trader whose sales do not exceed 14m/- a year.
“Now traders are trying to keep their sales up to 14m/- per year so that he/she is not given this Machine and others are trying to make sales not reach 100m/- so that he is not included in VAT, now I suggest that if possible every trader who does legitimate business should be given a machine, ”said Chalamila.
According to him, the number of traders who conduct their business fraudulently is high and so the only way to control them is to ensure they are given all the machines regardless of sales standards.
Director of BoT Mbeya Branch, Ibrahim Malogoi said the bank is in the process of registering various financial services groups in the country, noting that one of the preparations that has already been made is to formulate regulations for the management of the service at each level of groups.
He also said that they have developed systems and guidelines for the registration of the joint service providers and provide education for the community about the policy and legislation of financial services management.
“At the moment what is being done is to train these leaders who register these groups so that when they register the rules and guidelines are observed,” said Malogoi.
Some of the training participants pledged to ensure that all microfinance institutions (MFIs) such as the Savings and Credit Cooperative Societies (SACCOS) and Village Community Banks (VICOBA) are registered in accordance with the law.
One of the officers, Julius Mwakajila asked the BoT officers to continue providing the training so that they can work efficiently and ensure the rules are observed.
