Rukwa traders propose tax assessment reforms
RUKWA: TRADERS in Rukwa Region have called for significant reforms to the tax assessment system used by the Tanzania Revenue Authority (TRA), arguing that the current system fosters tax evasion.
Speaking during a meeting with the Presidential Tax Reform Commission, businesspeople expressed concerns over the existing system, stating that improvements would encourage voluntary tax compliance among traders.
They explained that the current individual tax assessment process fosters tax evasion.
“In this system, each trader is assessed individually, prompting negotiations with TRA officers to lower tax obligations, which results in reduced revenue collection,” said Mr Wilmington Kiziba.
He said that some traders falsify business data or omit information entirely due to the system’s loopholes. The traders called for a more transparent and equitable system, proposing a standardised tax schedule based on business types.
“Those trading similar goods should know exactly how much they need to pay annually. This approach would eliminate corruption, tax evasion and fraud,” said Mr John Msabaha, CEO of Rukwa Regional TCCIA. Despite their concerns, the traders commended the government for improvements in TRA’s efficiency and customer relations.
“Previously, TRA relied on force, leading to business closures and traders fleeing their premises. However, officials now use courteous language, engage in negotiations and even offer extensions for late payments,” said Ms Imelda Thomas.
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The Commission’s Acting Chairperson, Amb Mwanaidi Sinare Maajar, encouraged stakeholders to continue submitting feedback via phone and email, highlighting the government’s commitment to creating a more inclusive and equitable tax system.
Another commission member, Mr David Tarimo, a tax expert and former Head of the Tax Advisory Department at PwC, said that traders’ suggestions would be presented to the President.
The commission was tasked with gathering stakeholder opinions and presenting a report on tax reform to the President within six months, starting last November.
