State halts petty traders EFDs plan

PRESIDENT Samia Suluhu Hassan has suspended the plan by Tanzania Revenue Authority Kariakoo Tax region which requires petty traders to start using Electronic Fiscal Devices (EFD) in issuing receipts.

Finance and Planning Minister Dr Mwigulu Nchemba revealed this Wednesday during a special interview with a local television station in Dar es Salaam.

Dr  Nchemba  said that President Samia has suspended the plan so that  it can be well coordinated, calling upon the petty traders to remain calm as the government works on a proper system which will be introduced later.

He said the plan  was not targeting petty traders but specific areas where EFDs machines should be used but what has been interpreted is as the plan is for petty traders the situation which has caused panic among the group.

“The plan targeted central business areas so that they can conduct business using EFDs thus there is need for proper coordination for the plan,” he said.

He explained that President Samia has been taking various measures to improve the business environment for petty traders to ensure they conduct their business in orderly and safe manner such as construction of petty traders markets.

Dr Nchemba said the government’s goal is to ensure that petty traders graduate from small-scale business level to either medium or higher level so that they can start paying taxes.

On Monday, TRA Kariakoo tax region said that it has started registering petty traders who conduct their businesses in the Kariakoo area so that they can start using Electronic Fiscal Device (EFD) in issuing receipts.

TRA Regional Manager for Kariakoo Tax Region, Alex Katundu told journalists that the authority had already registered 5,373 petty traders.

He said the exercise aimed at registering 8,900 petty traders come March 30, 2023 which has been set as the deadline.

The targeted petty traders are those with businesses with capital zero to 4m/-.

Apart from the EFD machines, he said the petty traders have been given a Tax Identification Number (TIN) as well as a permit to find a business license so that they can pay taxes and the authority will be responsible to check if their sales allow them to pay tax or not.

“According to information stated by the Chief Commissioner that was issued in July this year, every business person at Kariakoo tax region should acquire TIN and EFDs regardless of the size of their business; therefore, it is the right time for all business people, including hawkers to register themselves,” said Katundu

According to Mr Katundu, every businessman at Kariakoo is required to have TIN and EFDs regardless of the size of their business.

He said all petty traders were required to issue receipts, including those selling vegetables, fruits, clothes, shoes and other commodities.

Mr Kitundu further said that the authority would continue to create awareness so that petty traders are registered.

He noted that the exercise aimed at ending the behaviour by some traders who use petty traders to sell their commodities so that they can evade from paying taxes.

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