AfricaPress-Tanzania: THE MINISTER for Finance and Planning, Dr Mwigulu Nchemba (pictured) has urged traders who have transferred or deposited money at home to return it to the bank.
He also said that what the government will do is levy a portion of their collections.
In addition, Mwigulu urged Tanzanians to pay taxes in accordance with the law, to create a culture of paying taxes and to refrain from tax evasion tactics, as anyone who evades taxes will not be tolerated.
He said this in a working session with heads of various departments in ministries, departments and Revenue Authority (TRA) and institutions under the Ministry in Dodoma yesterday.
Minister Mwigulu said TRA should use professionalism instead of force in tax collection so as not to kill businesses and not reduce taxpayers.
He said the TRA should ensure that they pay taxes and do not take all the money from traders.
“Let’s take what is required to be levied and not all the money of the traders, we should levy a tax that is part of the income in percentage or rate set,” said Mwigulu.
He urged the tax authorities to abandon the practice of conducting tax assessments that do not comply with laws and regulations, which contribute to killing sources of income and reducing taxpayers as well as killing their activities.
He said there have been debates especially in parliament complaining about revenue measurement practices that do not comply with the law and professionalism, so he urged TRA to refrain from areas or actions that cause confusion in tax collection.
He urged them to abandon the factors that cause traders to close their businesses.
“You have to protect existing taxpayers, rectify shortcomings and get back on track without killing government revenue sources and business activities.
“Mr. President’s directives are important to be implemented properly to protect and grow the country’s economy by levying taxes with dignity, professionalism and in accordance with the law and fix where we have damaged it” stressed Dr. Nchemba.
He urged the TRA to refrain from claiming the information of many previous years which is illegal for traders that have been processed, as record keeping is a challenge for many so it is better to adhere to the rules and regulations on how to conduct tax estimates.
“TRA wants you to send a strong message to TRA employees across the country that the Government has not said do not collect taxes or reduce efforts to collect those taxes but what is being talked about is to estimate and collect taxes in accordance with laws and regulations, without oppressing people” stressed Dr. Nchemba.
Tax evaders intolerance
Mwigulu also urged Tanzanians to pay taxes in accordance with the law, create a culture of paying taxes and refrain from tax cunning tricks, as anyone who evades taxes will not be tolerated.
“Tanzanians are required to pay taxes in accordance with the law, do not evade taxes, because anywhere in the world a person’s civilization is measured by how he pays taxes. Also when a person is looked at in a big matter he is considered a taxpayer, ”he said.
He said the TRA should reduce the system of paying cash by hand, but it should be paid using electronic machines through existing systems although later it will be improved to have better systems.
Mwigulu said the next step in the ministry would be to look at various tax collection systems to determine the best way to build the taxpayer’s confidence that it has been used to bring development to the country.
He warned officials who change instructions and intimidate traders about paying taxes.
Deputy Minister of Finance and Planning, Hamad Yusufu Masauni speaking before welcoming the Minister said that they are ready to achieve the goals set by President Samia
at the time of receiving the report of the Auditor and Controller of Public Accounts (CAG) and the Institute for the Prevention and Combating of Corruption (PCCB) and at the swearing in of the Vice President, Dr Philip Mpango and ministers.
He said they are there to ensure the implementation of the CCM Manifesto in achieving the goals and he is not worried about that. He said they are also looking at the progress made to develop faster. On three separate occasions; Receiving the CAG and the Takuru statement, swearing in the Vice President, Dr Mpango and swearing in the Principal Secretary, Ambassador Katanga, eight ministers and eight deputy ministers, Samia said the current trend of tax collection is to kill taxpayers.
He said TRA uses more force than using intelligence and knowledge.
“Those who are harassing them, taking their equipment, closing their accounts and then violating the income law, closing the business and moving to another country, you are reducing taxpayers,” he said.
He instructed Minister Mwigulu to create and expand the scope of taxpayers and to eliminate the factors that reduce people’s motivation to pay taxes. He wanted the ministry to raise significant revenue to boost the economy.
