TRADERS in Njombe Region have called on the government to closely regulate foreign companies involved in the purchase of raw materials, particularly avocado in order to increase revenue.

According to them, the foreign firms have been opening foreign bank accounts to avoid paying taxes and hence reducing the country’s revenue. 

The traders made the remarks during a recent meeting with officials from the Tanzania Revenue Authority (TRA), highlighting concerns over the loss of foreign currency and revenue.

The traders pointed out that many foreign companies, including about 26 Kenyan avocado buyers operating in Njombe, have business accounts abroad, while maintaining small local accounts solely for paying their employees. 

The arrangement, according to the traders, results in substantial foreign currency being transferred out of the country, depriving Tanzania of potential revenue.

Hamfrey Milinga, one of the traders, expressed frustration, stating: “If the avocado trade is profitable, why can’t our companies do the same? These foreign businesses exploit loopholes to avoid taxes because the funds are sent abroad and don’t benefit our country.”

Angelus Nziku, another trader, echoed the concerns, urging the government to consider reducing tax rates and the accumulation of fees in sectors such as hotels and manufacturing to encourage local business growth and investment.

In response, Richard Kayombo, Director of Services and Taxpayer Education at TRA, assured that all the traders' concerns would be addressed. 

He explained that some of the issues raised are operational, legal, and policy-related, and that the government is already working to resolve them. 
He also urged the business community to continue production while awaiting further action on these matters.

Specioza Owure, TRA manager for Njombe Region, shared that the region’s revenue collection target for 2024 is 35.817bn/-, and by November, they had already collected 14.155bn/-.

Sifael Msigala, chair of the Njombe Regional Traders Association, thanked the government for removing over 400 taxes and reiterated the need to reduce the accumulation of fees in the hotel and manufacturing sectors to foster   favourable business environment.