We’ll strike, say freight forwarders

Tanzania Association of Freight Forwarders (Taffa) president Stephen Ngatunga speaks to media in Dar es Salaam yesterday on the Tanzania Revenue Authority (TRA)’s move to impose a Sh100m bank guarantee. PHOTO | EMMANUEL HERMAN 

In Summary

The freight forwarders are of the view that the fee for an agent to obtain a licence is too high for ordinary Tanzanians

By Veneranda Sumila The Citizen Reporter

Dar es Salaam. Freight forwarders are threatening to boycott all ports, airports and border posts in protest against the imposition of a Sh100 million bank guarantee.

They are of the view that the imposition by the Tanzania Revenue Authority (TRA) of the fee for an agent to obtain a licence is too high for ordinary Tanzanians.

They call upon top government officials to scrap off the fee in one week for them to change their mind.

Freight forwarders are key in tax collection and according to Tanzania Freight Forwarders Association president Stephen Ngatunga, they collect more than 51 per cent of the total revenue collected by TRA.

They are also specialists in ensuring the smooth delivery of goods to any destination across the country and neighbouring countries so their boycott can mean that freight movement from ports, airports and borders will stop.

“We have tried to reach the minister for Finance, Saada Mkuya, but it seems she has refused to meet us. We started efforts to meet her since December but to date she is yet to meet us,” said Mr Ngatunga.

Last week, TRA convened a meeting with big importers and exporters, cautioning them to be careful with some unscrupulous freight forwarders who have been presenting forged documents to the tax collector making the importer or exporter pay more than what is actually required.

“We have observed that some agents are forging invoices of their customers with the aim of making traders pay more for their cargo. Goods which, for example, are entitled to a Sh20 million tax, traders are told that they cost Sh50 million. Agents then convince traders to pay Sh30 million in which Sh10 million is a bribe. Worse, agents tell traders that Sh10 million has been bribed to TRA officials. This cannot be tolerated,” TRA deputy commissioner customs department Patrick Mgoya told the business community last week.

He said therefore that the Sh100 million has been put in place to ensure that only credible agents are licensed.

But according to Taffa the fee is aiming to hurt and expel ordinary Tanzanians from the business. “If TRA knows the unscrupulous agents, why is the authority not taking action against them? Why punish ordinary Tanzanians for mistakes of few known dishonest agents?” asked Mr Ngatunga

He said there was a hidden agenda which rich Tanzanians and foreigners had played with TRA to eliminate ordinary Tanzanians in the business.

“I am telling you the unscrupulous agents referred by TRA are rich Tanzanians and foreigners and TRA knows them very well. They are the ones who are playing this game,” said Mr Ngatunga.

In other East African countries such a fee is not there hence imposing it “will make Tanzanian agents uncompetitive.” For his part Dr Mgoya said last week that despite the fact that agents have been complaining that the Sh100 million bank guarantee is too much for local agents, TRA says that the amount is reasonable and cannot be changed.

“The amount will remain the same because agents may cause loss to importers and exporters hence the bank guarantee will help to cover the loss,” said Mr Mgoya.