PRESIDENT John Magufuli launch the
stateof-the-art Electronic Revenue Collection System at Kijitonyama in
Dar es Salaam yesterday. Looking on are Zanzibar President Dr Ali
Mohamed Shein (left), Vice-President Samia Suluhu Hassan and other
senior government officials. (Photo by Mohamed Mambo
PRESIDENT John Magufuli yesterday ordered licence revocation for mobile phone companies, which are reluctant to list on the Dar es Salaam Stock Exchange (DSE).
President Magufuli directed the Tanzania
Communications Regulatory Authority (TCRA) to act tough against the
stubborn companies, emphasising that all mobile phone firms should float
shares on the bourse.
He issued the directive at the launch of
the Electronic Revenue Collection System (e-RCS), which will be
operated by Tanzania Revenue Authority (TRA) and Zanzibar Revenue Board
(ZRB).
The system is designed to track and
directly collect Value Added Tax (VAT) and Excise duty on all electronic
transactions by communication companies and financial institutions,
with the views of enhancing efficiency in the collection of government
revenues.
“It is not enough to just subject the
mobile phone companies to fines of 300m/- and allow them to continue
minting billions of money in profits... they will not list because they
are capable of paying the fines,” charged Dr Magufuli.
The Electronic and Postal Communications
Act of 2010 (EPOCA) requires all telecommunication companies in
Tanzania to list on DSE. But, so far, only Vodacom Tanzania has adhered
to the legislation and embarked on the process to float shares on the
bourse through an initial public offering (IPO).
“Listing at the bourse will enhance
transparency and enable the government to collect its fair share of
revenues,” said the Head of State.
He asked the telecommunication companies
and financial institutions to join the e-RCS to allow the government to
track and monitor their electronic transactions like mobile money
transfers, data, voice and all payments made, electronically.
“It is an open and transparent system
with no human errors, companies should join voluntarily or otherwise we
will amend the law to compel mobile companies and financial institutions
to join the scheme,” he declared.
Adding; “In Ethiopia, they have only one
mobile phone operator and it is performing well, last year it recorded
1.5 billion US dollars (over 3tri/-) profit out of between 30 and 35
million subscribers.”
Dr Magufuli was of a view that since
Tanzania has more subscribers, mobile phone companies ought to
contribute more to the economy from the profits they generate in their
lucrative business.
The President was vividly perturbed by
the fact that the Tanzania Telecommunications Company Limited (TTCL) has
not paid out dividends to the government since its shares were sold to
the foreign investors in the 1990s.
“Before privatisation, the company used
to pay 1bn/- dividends in each year and that was a lot of money at that
time... why is it not paying the same after privatisation,” he wondered.
Earlier, TRA Commissioner General
Charles Kichere informed the President that only three companies --
Halotel, Smart and state-owned TTCL --have so far joined e-RCS, the
system he described as an efficient tool for tracking and collecting
revenues through electronic payments without human intervention.
The TRA boss explained further that the
e-RCS was a follow-up to cargo tracking system designed in 2012, Revenue
Gateway System of 2013 and the Tanzania Customs System of 2014.
“It should as well be understood that
the system does not impose additional taxes to the companies and their
customers,” he explained. At the event, Zanzibar President Dr Ali
Mohammed Shein hailed the state-of-theart system, which he said will
enable the government to boost its revenues.
“Everyone must pay tax and the one
collecting the revenue should be very organised since some taxpayers are
fond of cheating,” he stated.
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