Ignorance and intimidation by some medium scale value added tax (VAT) registered traders is the reason behind the two days strike which happened at the country’s busiest commercial district.
Kariakoo market
Speaking to the ‘Daily News’ on Thursday, some of the traders said most hawkers enforced the strike by intimidating others because they did not understand what electronic fiscal devices are, who pays for them and who is eligible to get them.
“Many hawkers don’t know who is paying for the machines and who is required to get one,’ said Mr Goodlove Bembe, a clothing wholesaler at Kariakoo who said if Tanzania Revenue Authority (TRA) had sensitized them properly before starting to issue the gadgets trouble would have been averted.
Mr Bembe pointed out that many hawkers misunderstood the whole concept of EFD use because a group of medium and large scale businesses who are already registered are inciting them.
“The majority of the traders here are semi literate, in fact many are primary school drop outs who need thorough sensitization on the issue,” argued Mr Bembe, who also urged authorities to further lower prices and if possible allow competitive selling locally by electronics dealers.
“The government should allow everyone who can afford to import the gadgets instead of giving such a big deal to some selected few who are minting money from us,” said Mr James Mgoni who manages a restaurant at DDC Kariakoo.
Mr Mgoni said some traders are disputing payment of the 18 per cent VAT and minimum of 600,000/- upfront for the EFD machine because of ignorance.”If anything, then it’s consumers who should be protesting and not traders,” he noted.
Mr Mgoni further noted that TRA has failed to adequately explain to them how EFD machines will be paid for leaving behind a vacuum being exploited by big businesses opposed to the new gadgets which seek to curb rampant tax evasion.
“We need more grace period so that sensitization can be done because if this misunderstanding is happening in Dar es Salaam, what about upcountry?” he wondered. The EFDs which were introduced in 2010 targeting traders with a turnover of 40m/- per annum have so far been sold to close to 17,000 traders with an annual turnover of not less than 14m/-.
According to the authority, EFD bears fiscal seal, has special inbuilt Read Only Memory (ROM), incorporates fiscal memory that cannot be erased by use of electromagnetic interface, keeps 48 hours power backup, can also use external battery in areas without electricity supply, among some of their unique characteristics.
In addition, the machines have irreversible date mechanism ensuring that no backdating can exist and they can be used as a stand-alone or configured into network with memory capacity to store data for at least five years or 1,800-day transactions.
Deputy Minister for Finance, Ms Saada Mkuya Salum said the government has extended the deadline for compulsory use of the gadgets from 15 November to December 31, 2013. She also said prices have been slashed from 800,000/- to between 600,000/- and 778,377/- each.
By FINNIGAN WA SIMBEYE, Tanzania Daily News
