Many Dar traders not aware of amended Business Licensing Act

By Felix Andrew

TCCIA president Peter Chisawilo

 A cross section of businessmen in the country’s commercial capital is not aware of the newly amended Business Licensing Act which requires any one applying for business license to submit a tax clearance certificate.

 

Speaking to this paper in an interview, the chairperson of Temeke stereo business association, Musa Yakuti, said he does not know anything about the new act which was announced recently by the Ministry of Industry and Trade.

 

“We are not aware of the new act which requires us to submit tax clearance certificate before applying for a new or renewal of license,” he said.

 

In the past they were not asked to present the certificate, he said, adding that despite it has increased disturbances but they would cooperate with government organs to fulfill the requirement.

 

A statement issued by the office of Permanent Secretary in the Ministry of Industry and Trade said the Government, through the Finance Act No. 16 of 2015, has amended the Business Licensing Act No.  25  of  1972 Section 13 by adding a  sub-section that requires a business person applying for a new business license or renewal of a business  license to submit a tax clearance certificate. 

 

“In  view  of  the referred requirement, the  government  takes  this  opportunity  to  inform the  business  community  that, from now onwards all business license applications should be accompanied with a tax clearance certificate from Tanzania Revenue Authority (TRA) for the respective year”, the statement said . 

 

The statement further noted that those applications that will not be accompanied with the said tax clearance certificate will not be considered.

Last year the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) launched a short message service for gathering views on the best methods the government should use to collect license fees.

 

The service, according to TCCIA president Peter Chisawilo, sought to provide a way to voice stakeholders’ opinions on how the country’s business environment can be improved.

 

At the beginning of the 2013/14 fiscal year, the government announced that it will be mandatory for businesses to renew their licenses on an annual basis.

This, according to TCCIA, means that all businesses will be required to process and pay for licenses annually.

 

He was quoted by this paper as saying that the government decision contravenes the License Act, 1972 and it’s amended Act of 2004 that requires business licenses to be processed for free and once during the business lifetime.

 

“There have been numerous complaints from the business unions about the re-establishment of the license payments every year, and the private sector has raised complaints against the government for not involving them before reaching the decision,” he said.