New initiative to boost tax compliance
DAR ES SALAAM: THE Kariakoo Traders’ Association has appointed tax ambassadors to conduct a door to-door campaign aimed at ensuring traders register their businesses, obtain Taxpayer Identification Numbers (TIN) and pay taxes voluntarily.
The initiative seeks to promote fairness in tax compliance within the business community.
Speaking at the ceremony to introduce the ambassadors on Tuesday, Commissioner General of the Tanzania Revenue Authority (TRA), Mr Yusuph Mwenda, was optimistic that the ambassadors would play a crucial role in fostering a culture of voluntary tax compliance.
He noted that the initiative would help create a level playing field in the market by ensuring all traders in Kariakoo market are registered and fulfilling their tax obligations.
Mr Mwenda reiterated TRA’s primary mandate to facilitate business growth while ensuring enterprises do not collapse under regulatory pressures.
He pointed out that Kariakoo is a vital commercial hub serving not only Tanzania’s regions but also neighbouring countries, making close collaboration between TRA and traders essential.
Recognising Kariakoo’s significant contribution to tax revenue comprising small, medium and large taxpayers Mr Mwenda stressed the importance of maintaining an open dialogue with the business community.
He reassured traders that policy-related tax challenges were being addressed by a special commission established by President Samia Suluhu Hassan, while TRA actively works to resolve systemic issues within its jurisdiction.
The Commissioner General reaffirmed his commitment to engaging with taxpayers and maintaining an open-door policy to improve the business environment.
“President Samia Suluhu Hassan entrusted me with the responsibility of promoting business sustainability while ensuring voluntary tax compliance without coercion. I commend traders for their willingness to pay taxes, including small-scale vendors (Wamachinga), who have also expressed their readiness to contribute to national revenue,” Mwenda stated.
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He further urged traders to report tax evaders and foreign businesses engaging in activities reserved for Tanzanian citizens, as such practices undermine fair competition in the marketplace.
Regarding the planned relocation of small-scale traders to the designated Jangwani business area, Mwenda assured that TRA would work towards creating a conducive environment for their operations.
Additionally, he addressed concerns about goods imported by Kariakoo traders that remain stuck at the port due to complications with Mapema Cargo.
He directed the Deputy Commissioner for Customs to expedite the resolution of this issue to ensure traders receive their consignments and resume normal business activities. Ilala District Commissioner Edward Mpogolo announced that his office is compiling a database of all traders in Kariakoo.
The initiative will facilitate seamless registration in collaboration with TRA, reducing the need for traders to visit TRA offices and allowing them to focus on their businesses.
He also commended Mwenda’s approach of engaging with traders amicably, which fosters cooperation and enhances tax revenue collection.
Ms Severin Mushi, Chairperson of the Kariakoo Traders’ Association, explained that the appointment of ambassadors is a strategic move to facilitate trader registration, ensuring that every business owner in Kariakoo obtains a TIN and fulfills their tax obligations.
He insisted that the association works closely with TRA to address emerging challenges and create a business-friendly environment.
Meanwhile, the leader of small-scale traders, Mr Steven Lusinde, expressed gratitude to President Samia Suluhu Hassan for her support of their group.
He assured Commissioner General Mwenda that petty traders are prepared to comply with tax regulations.
