The Tanzanian government announced on Monday the retraction of several tax decisions, following an extraordinary meeting with representatives of business communities and pressure from Kariakoo traders.
Major market traders at the country's largest international market closed down their stores for hours on Monday in what was reported to be an indefinite strike on the country's proposed financial bill of 2024/25, among other issues.
They immediately called it off following the government's decision to seek a consensus with their representatives; the decision, however, did not hold water as dozens of stores went on shut mode.
The strike was planned for Kariakoo market, before escalating to Mbeya, Iringa, Ruvuma, Rukwa, Mwanza and Arusha Regions.
Speaking to reporters in Dodoma on June 24, Minister of Planning and Investment Prof. Kitila Mkumbo said the government has suspended indefinitely the inspection of EFD receipts and VAT returns which was commissioned by the Tanzania Revenue Authority (TRA) at the Kariakoo Regional office in Dar es Salaam.
"TRA will now prepare a better system to confirm receipts, however, until then this inspection will be on hold," he said without specifying the final dates for the new system to take off.
He went on to details that the government will further revisit its legislation on tax calculations to ensure it does not create grievances among traders. He was referring to the calculations conducted by authorities on imported goods through ports of entry.
Also Read: Govt, Kariakoo traders seek amicable solutions
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Minister Mkumbo emphasized that the Financial Bill has not yet been approved for the second reading, urging the public to continue submitting their opinions.
"We are committed to creating a fair and transparent tax system that supports both the government's revenue goals and the business community's needs," he said. "It is important that everyone doing business at Kariakoo pays tax."
Minister of Finance Dr. Mwigulu Nchemba, Minister of Industry and Trade Dr. Ashatu Kijaji and Attorney General Judge Eliezer Feleshi attended the meeting in Dodoma.
On the other hand, Dar es Salaam Regional Commissioner Albert Chalamila assured traders that the government will protect all traders who will open their stores, warning individuals who had threatened to harm stores defying to strike.
Mr Chalamila said all complaints submitted by traders to the government will be addressed accordingly.
