The tax collecting body caution comes after noticing that some traders still refrain from using EFDs despite being registered as Value Added Tax (VAT) payers.
EFDs are an advanced version of electronic cash registers that record all sales transactions and provide evidence of such transactions in a technically easy and undisputed way to TRA.
TRA introduced the first phase of EFDs in July 2010 and the second in 2013 to maximise collection of Value Added Tax (VAT) in merchant shops across the country.
Alphayo Kidata, TRA’s Commissioner General said despite the introduction of EFDs, some traders are still not using the machines and that comprises service delivery of the tax body.
“It is quite disheartening to see that some traders are running away from using EFDs in the country. Let me remind them that this is criminal because they are stealing from the government,” Kidata stressed.
The TRA boss warned that this is a serious offence, reminding the public that they should demand receipts from goods sellers.
There are some traders who bought the device but are not issuing receipts to customers derived from the same.
However, the tax collector has put several enforcement measures that will lead to the arrest of traders who are not remitting tax.
“While others are running away from using EFDs, some traders are tampering with the machines. This is pure theft and there is no proper reason why they are doing that,” he observed.
According to him, using the device will enable traders charging tax that is equivalent to their transactions.
Kidata further said TRA has intensified enforcement exercise ranging from inspection, surveillance and closure of business premises of those not using EFDs for their personal gain.
He then applauded the relationship existing between the media and the tax collecting body, saying it has been growing from strength to strength.
The Commissioner General said business journalists are key to disseminating issues on taxation adding that tax touches a lot of human lives in the country.
It has, however, been observed that some traders do not produce receipts despite having the device.
Joktan Kyamuhanga, TRA’s Acting Commissioner for Custom and Excise advised importers to do justice to themselves by being law-abiding and to pay their taxes to the right authorities.
This, he said, will prevent them from encountering embarrassment or other difficulties in doing their businesses.
The Customs Commissioner advised taxpayers to adhere to voluntary compliance rather than being compelled to pay taxes.
He commended business practitioners, among others, on the need to know how to calculate their taxes as well as secure their businesses.
“Traders and the entire business community must know that once they get involved in illegal activities they will be dealt with accordingly,” said Kyamuhanga.
According to him, businesses and individuals involved in the said illegal activities will not be allowed to walk scot free.
On the other hand, Tanzania Revenue Authority (TRA) said it plans to reach the government’s revenue collections target amounting to 12trn/- by July this year if collections are maintained smoothly.
This follows the tax body to surpass collection target of revenue per month, hence March this year it increased revenue collections by 101 per cent to 1.316trn/- from the targeted 1.302trn/-, said Alphayo Kidata, Commissioner General of Tanzania Revenue Authority (TRA).
From July 2015 to March this year, the taxman recorded 99 per cent of revenue collections amounting to 9.88trn/-.
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