TANZANIA’S workers yesterday asked the government to ease the tax burden on their salaries to enable them provide families with basic needs.
Presenting their case before President
John Magufuli during the International Workers Day here, the Trade Union
Congress of Tanzania (TUCTA) Secretary General, Dr Yahya Msigwa decried
what he termed excessive deductions from employees’ salaries, with some
workers paying up to 30 per cent in graduate charges.
He said despite the government’s good
intention to reduce Pay As You Earn (PAYE) on salaries from 11 to nine
per cent, it has come to Tucta’s attention that the reduction benefits
only few, getting the minimum wage. “We thank the government for
reducing PAYE from 11 to nine percent but we have learnt that there are
few beneficiaries – those getting minimum wage only.
The middle and high income earners are
subjected to huge deductions of up to 30 per cent in graduate charges,”
charged Dr Msigwa. He proposed the threshold of taxed salary to increase
from the current 150,000/- to 750,000/-, arguing that a 2015 research
concluded that 750,000 is the amount that can enable the worker, spouse
and four children to get the basic needs.
Dr Msigwa further pleaded with the
president to limit the taxes on employees’ salaries to 18 per cent. The
Tucta executive decried an emerging trend of abusing the employment laws
and regulations in the country, citing discrimination against
Tanzanians while favouring foreigners.
He said there are instances where
salaries differ at great margins, with foreigners earning 7m/- against
700,000/- paid to Tanzanians for similar qualifications and job
responsibilities.
He accused some employers of hiring
their relatives as human resource officers without the required
qualifications, and as a result, end up oppressing locals whom they deny
permanent job contracts.
Dr Msigwa asked the judiciary to
speedily dispose labour cases, especially in upcountry regions where he
said judges were not trying cases at the required pace. Responding,
President Magufuli said the entire government was present at the
celebrations and everybody had heard the pleas.
In attendance was Vice President Samia
Suluhu Hssan, Prime Minister Kassim Majaliwa, Speaker of the National
Assembly Job Ndugai, his Deputy Dr Tulia Ackson, ministers and Members
of Parliament. He said the government will address all workers’ concerns
and to start with, it will effect annual increments and promotions in
the next fiscal year.
Minister of State in the Prime
Minister’s Office, Parliament, Policy, Labour, Employment, Youth and
Disabled, Jenista Mhagama said the tripartite talks between the
government, Association of Tanzania Employers and TUCTA will be
sustained to guarantee harmony in the labour market.
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