CONTRACTORS should maintain proper business records as a necessary prerequisite to compete effectively and manage tax liabilities as they fall due.
The Contractors Registration Board (CRB) Registrar, Mr Boniface Muhegi issued the advice in Dar es Salaam, during an interview with the 'Daily News' regarding complaints by some contractors about over-taxation by Tanzania Revenue Authority (TRA).
"If they have all the business records kept properly in a database, there is no way that the taxman could overcharge contractors in their construction activities," he said.
He said payment and protection of government revenues was of paramount importance and that all citizens, including contractors, have to adhere to by paying appropriate taxes.
Mr Muhegi added that having all business records kept appropriately, contractors could easily lodge complaints to the tax regime in case of unfair taxation being instituted against them.
Remarks from the CRB boss came following complaints from some contractors that TRA has been overtaxing small scale contractors without considering the level of their capital and business. The Technical Director of Moshi-based Bona and Building Engineering Limited,
Mr Bona Matemu, speaking at the two-day exhibitions of CAT equipment in Dar es Salaam, decried inequitable taxation for small contractors, a move that impedes their efforts to grow.
"The government should consider ways to support small contractors in their efforts to grow instead of instituting heavy taxes in their initial years of business," he charged.
Mr Matemu said empowering small contractors through provision of construction facilities like machines will automatically increase the number of contractors who will be added into the tax base.
Mantrac Tanzania Limited, the sole authorised dealer of Caterpillar products in Tanzania, had hosted the exhibitions held in Dar es Salaam last weekend.
Mantrac distributes and supports the full range of CAT construction equipment including wheel loaders, skid steer loaders; dump articulated trucks, backhoe loaders, excavators, motor graders, track-typetractors and BCP products.