Tanzania: Government won’t backtrack on EFDs-TRA

 

12 February 2014

As traders continue to strike over the use of Electronic Fiscal Devises (EFDs), Tanzania Revenue Authority (TRA) has said that the government will not backtrack on the directive. Acting Commissioner of Tanzania Revenue Authority (TRA), Rished Bade, said his authority will continue to stick to its guns and those who will go against the directives, their licenses will be revoked indefinitely. Quoting Rished Bade

“There is no excuse on this. Traders must use the devises as directed,” Bade said, stressing that the time for tax avoiders has gone. ~ Bade.”

He said TRA has made a number of efforts to train traders on the use of the gadgets for the past three years. So, businessmen have nothing to say on this. Meanwhile, traders in the northern capital city of Arusha on Wednesday closed down their shops in protest against the use of Electronic Fiscal Devises (EFDs). No shopping was made since morning as no shop was open on the entire day as all traders gathered at the Golden Rose Hotel discussing on a number of issues related to the devices. Business community in Arusha joined their fellow traders, who are protesting against the vice in different parts of the country, such as Dar es Salaam, Ruvuma, Dodoma, Musoma, Mbeya, Makambako, and Iringa. Arusha joins Dar es Salaam and Mwanza regions, where traders have been closing their shops, demanding that the government backtracks on the issue of EFDs.

 

Grassroots sensitization required on TRA’s EFDs revenue system 

Closing down businesses, sitouts and suchlike have dotted Tanzania’s commercial landscape in recent weeks and months. They were staged to melodramatise the message that traders are against a novel business transaction recording system introduced by the Tanzania Revenue Authority (TRA). The system is centred on a programmed recorder, an Electronic Fiscal Device (EFD), effectuated on July 1, 2010. Traders with an annual turnover of Tsh14m are perforce required to use the devices, failure of which is statutorily punishable. When properly installed and applied, EFDs electronically record trade transactions on the spot, including ‘issuing’ receipts for all goods and services ‘purchased.’ EFDs are ‘connected’ to appropriate TRA equipment. Consequently, tax officials automatically receive a recording of trading transactions, and how much tax revenue accrues there from. If the system is to work more efficaciously, then the relevant institutions must provide ‘grassroots’ education thereof nationwide. Indeed, TRA is already doing that via its website and electronic broadcasts. The ‘Trader Massawe’ promotion via Radio Tumaini is a good start. Massawe no longer hides or runs away from TRA inspectors who call at his premises, and his ‘books’ are now a delight, thanks to the EFD system. If nothing else, this indicates that we must reach more ‘Traders Massawe’ to make a resounding success of the system.
 
 
Source: speechlog