Businesses operating outside the formal sector on the rise, says LEAT

By Gerald Kitabu

Lawyers Environmental Action Team (LEAT)

The Government has been advised to formalise businesses conducted by small traders and integrate them into the mainstream economy for easier coordination.



The remarks were made by executive director of Lawyers Environmental Action Team (LEAT) Dr Rugemeleza Nshala, who also said that currently there is an increase in the number of small traders outside the formal sector who are not well known by the government.

As a result, he said, many of them do not pay service levies, fees and tax to the central government or municipal councils.

He was speaking to reporters at the weekend during a cleanliness exercise of Mazingira Street in Dar es Salaam as part of the activities to celebrate the 20 years anniversary of LEAT.

“There are so many businessmen working outside the formal sector, very unfortunately, the government does not know them, which means it is very difficult to manage them,” he said.

He adds: For that matter, they act as parasites to those working in the formal sector who pay service levies, fees and tax.

However, he said, that he doesn’t mean that they don’t play a crucial role in the economy, but since they don’t pay service levies, then they are siphoning off the little that is paid by the workers in the formal sector.

“For example, at Kariakoo, Manzese, and other business centres there are so many businessmen who don’t pay the levies but at the end of the day they need the government to service them while they don’t pay anything” he said.

Commenting on the environment management, he said the government should enforce laws governing the environment and town planning so that the petty traders don’t pollute the environment.

“Currently, the city is producing foul-smell, traders and other businessmen have also contributed to this pollution because they are not well managed” he said.

Apart from conducting cleanliness exercise for the past four days, LEAT also conducted training on the environment and awareness raising among primary school pupils at Kawe B, Primary school.
LEAT was formed in 1994 and has since distinguished itself as the leading public interest environmental management law organisation, especially in areas of mining, wildlife and wider environmental management. 

SOURCE: THE GUARDIAN