TRA moves to address rent tax complaints

SIMIYU: THE Tanzania Revenue Authority (TRA) has acknowledged receiving complaints from traders across the country over the withholding rent tax, pledging to work on the matter.

The traders are required by law to deduct the tax from landlords when paying rent for business premises, but many say the process has become problematic.

TRA said the complaints have been reported in several parts of the country and the authority is already working on them, noting that it does not wish to see traders comply with tax obligations while facing persistent grievances.

Speaking during a seminar on tax law changes for the 2026/27 financial year in Simiyu Region, the Director of Taxpayer Education and Communication, Mr Richard Kayombo, said the authority will address the issue.

Mr Kayombo said the authority has received complaints from traders in the region, who said landlords often refuse to allow the tax to be deducted.

They explained that when TRA officers visit their businesses for tax assessments, they enforce the law requiring traders to withhold the rent tax.

ALSO READ: TRA moves to plug revenue leaks at Mkoani Port

“There is no landlord willing to accept deduction of this tax when you pay rent. Most become hostile and even ask you to vacate their premises,” said trader Mr Padael Mtiba.

He added that the burden eventually falls on traders. “When TRA officers come, they demand payment from the trader because the law requires us to withhold the tax. But since landlords refuse, we end up paying from our own pockets,” he said.

Another trader, Mr Mathias Agustino, said he frequently clashes with TRA officials over the issue, as landlords continue to resist the deductions.

He noted that he has been forced to pay the tax on behalf of his landlord using his own money, apart from the rent he pays.