Middlemen ‘mawinga’ cry over new tax push

DAR ES SALAAM: SMALL-SCALE middlem en “mawinga” who buy and resell popular goods online have raised concerns over a proposed tax plan, saying it threatens to cripple their fragile businesses.

Many mawinga who operate informally and rely on seasonal trends and digital platforms to sell clothing, electronics and household items, say their capital is limited, their income unpredictable and the business environment already harsh.

“This business is a gamble,” said Ms Beatrice Lucas, a winga specialising in selling clothes told Daily News recently: “I spot a trending outfit online, show it to customers and only if someone is interested, I go and buy it from a shop and deliver it. So how exactly am I supposed to pay tax on something that’s not even guaranteed to sell?”

She added that taxing wingers amounts is to punishing low-income citizens trying to make an honest living.

“They are pushing us back instead of lifting us up. We already pay taxes indirectly through the shopkeepers we buy from. Why are they coming after us, the ordinary hustlers?” she said.

Another vendor, Hamza Francis, echoed the concerns, telling Daily News that the tax Tanzania Revenue Authority (TRA) plans to introduce will hurt them a lot.

“I already pay a daily fee of 500/- for my business and I do not even have a clear estimate of my income. It’s not fair,” Mr Francis said. Some traders accused local enforcement officers of harassment and extortion.

“When the city guards (mgambo) pass by, they either force us into the markets or demand 20,000/-,” said one trader who requested anonymity.

“And even after that, we are still expected to pay the 500/- daily levy.”

Ms Winnie Mohammed, another vendor, said she had not received any official communication about the new tax measures.

“I did not even hear that but if it is true, then it is not in our best interest. Most of us are barely surviving as it is,” she said.

Ms Mohamed said for he does not even have register for Taxpayer Identification Numbers (TIN).

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For Jackson Maselle, who sells household items, the tax plan is not only illtimed but also insensitive to the realities of unemployment in the country.

“Most of us became winga because there are no jobs,” he said “These are seasonal, unpredictable businesses”.

He said now it feels like the government wants to push them into crime.

“Why target the poor while the wealthy go untouched? Are we the only ones who must pay tax faithfully?” he questioned.

Their frustrations come in the wake of a recent call by TRA Commissioner General Mr Yusuph Mwenda, during the Tax Education Campaign for Online Businesses in Dar es Salaam urging small traders including online sellers to comply with tax laws and contribute to national development.

“It is every citizen’s responsibility to support the country’s development through proper tax payment,” he said. Online business is growing fast, especially in commercial hubs like Dar es Salaam.