TRA plans campaign on tax compliance

PIUS RUGONZIBWA in Mwanza
 

TANZANIA Revenue Authority (TRA) in Mwanza Region plans to carry out a massive public campaign on tax compliance by appealing to religious leaders to sensitise their followers.

TRA Regional Manager, Mr Ernest Dundee, said here in an exclusive interview early this week that apart from sensitisation campaigns on payment of government taxes, more emphasis would be laid on issuance of official receipts and the use of Electronic Fiscal Devices (EFDs).

Involvement of religious leaders in the campaigns is of paramount importance as surveys show that tax evasion is still perceived as a ‘heroic act’ as it makes some people accumulate wealth quickly, he said.

“Religions are against sins and in my opinion tax evasion by avoiding to issue receipts and many other tricks is a sin altogether. We will ask religious leaders to address this serious matter during their prayers,” said Dundee, who was recently transferred from neighbouring Shinyanga Region.

He said one of the challenges facing his office was the change of mindsets towards payment of government taxes by means of demanding and issuing receipts on the sold commodities and services respectively.

The culture was poisonous to the economic development of the nation and should therefore be condemned, he warned. He said the formation of tax clubs in various schools in the region where tax education is being taught was a timely move.

However, he was of the opinion that more such clubs are needed for the general public to receive continuous education on the matter. On the application of EFDs, he expressed his disappointment on that many businesspeople still don’t use them for different excuses as some say the gadgets are not user-friendly. “I think we will need to counter these claims vigorously.

If the businesspersons can effectively use their smart phones which appear to be more complicated, why can’t they manage the EFDs?” he queried. Dundee said he is set to form a team of inspectors that will carry out regular surveillances on all business premises, including petrol stations to enforce EFDs compliance.

A spot survey by the ‘Daily News’ in various petrol stations has uncovered tricks in issuing receipts. Many stations still use manual documents on demand while those with EFDs lock them in special rooms, making it difficult for the consumers to see them.

On that scenario, the Regional Manager said all the petrol stations are supposed to ensure EFD machines are openly placed and receipts promptly issued.

He mentioned another strategy in the pipeline as the launch of a special operation on house owners and business premises in the City and entire region to start paying statutory taxes on rental services.

The operation, he said, will include identification of all houses, number of tenants as well as locations.

It will also include all hotels and recreational facilities reportedly operating without issuing official receipts.