TRA ready to address issues with tax payers

 Director Of TRA ,Rished Bade. 

In Summary

The Taxman said affected parties by the new legal regime should submit their concerns in writing for discussion aiming at addressing the issues.

By Felix Lazaro

Dar es Salaam. Tanzania Revenue Authority (TRA) is ready to discuss with stakeholders on contentious issues they raised in the new Value Added Tax (VAT) act 2014.

The Taxman said affected parties by the new legal regime should submit their concerns in writing for discussion aiming at addressing the issues.

On Friday, TRA met with different stakeholders for awareness seminar on the new VAT Act 2014, an event organized by the Confederation of Tanzania Industries (CTI).

Stakeholders especially from aviation and pharmaceutical industries said the new law subjected their services to the VAT, a move likely to hinder the industrial growth by increasing costs of operation.

In his comments, Tanzania Air Services director Mr Abdulkadir Mohamed said tax changes on aviation industry as per the new act would affect the sector given that it usually has a thin profit margin.

“There is need for the government to allow TRA employ people with aviation knowledge to help the authority make proper decisions about taxes to air operations. This is a complex business which is yet to be well understood by tax collector,” he said.

According to him, the main concern is about VAT on insurance and leasing. He said all insurances, except life and health, will attract VAT.

CTI vice chairman Mr Pankaj Kumar stressed that pharmaceutical and aviation sectors were the most affected businesses and called upon the Taxman to solve the contentious issues.

“I am very optimistic that our members will comply with the new law. Only that you need to have regular consultations to settle some issues and educate the affected parties,” he said.

TRA commissioner general Mr Rished Bade asked the stakeholders who have their issues to write their concerns and meet him for discussions.

“I can see some of the issues you are raising need technical consideration and hence you better write them well and come so that we can sit and discuss,” he said.

Mr Bade said the new act like any others, aims at furthering development of business and not killing them, urging that it is better to ensure the new law is presented to the public so that it can be read and understood for compliance.