THE Tanzania Revenue Authority (TRA) has been instructed to suspend all operations involving arresting traders, as well as suspending inspections on electronic fiscal devices receipts for at least one month.

Thobias Makoba, the chief government spokesman, late yesterday that this was the first point in 15 resolutions in the meeting between the government and leaders of traders associations.

The resolutions directed at the revenue authorities for compliance, came in the wake of a countrywide stoppage of wholesale businesses in key urban centres, and take up pervious negotiations and unfinished business especially with Kariakoo traders, the nerve centre of wholesale business.

The government has halted an exercise to inspect electronic fiscal device (EFD) receipts all over the country as it works on good procedures to use such devices.

Prime Minister Kassim Majaliwa headed the government team after the Treasury had earlier rejected demands to stop EFD receipt inspections saying the system was working as expected.

The talks were held intermittently for four days, where the traders submitted 41 substantial complaints, and in the wake of an inconclusive dialogue with responsible ministers, namely for Finance, Planning and Trade.

The government has thus instructed TRA to work out and present an improved system to facilitate issuance of purchase documents for importation of goods, starting from the new financial year, he said.

The traders have been instructed to present three monthly reports on implementation of the agreed resolutions, contrary to the past where government instructions remained a dead letter.

 The TRA has also been directed to invest efforts in a public awareness drive on tax issues, legal requirements for traders and the public at large, also preparing a list of eight products liable for indicative prices as in used car products, he stated.

The products are printed fabrics, shirts, other clothes, cosmetics, precious stones, lingerie, handkerchiefs and vests, he elaborated, noting other instructions to the Tanzania Ports Authority (TPA).

It needs to quickly increase the number of inland container depots (ICDs) to facilitate cargo delivery in ways that don’t involve consolidation, he said.

In the medium term the government will review prevailing tax rates to enable traders to pay taxes in harmony rather than adversity with law enforcement, while also reflecting the value of their businesses, he explained.

TRA also needs to complete improvements on the Tanzania Customs Integrated System (TANCIS) to include an auto valuation module making the tax calculation transparent and fair by early January 2025.

“Experts of Tanzania Bureau of Standards (TBS) and TRA together have been directed to complete the revision of the information technology system by end of July,” the spokesman affirmed.

Cargo entering the country through container sharing will be registered with the Taxpayer Identification Number (TIN) of the owner of the cargo instead of the TIN of the agent, without incurring additional costs for the taxpayer, he spelt out.

The Treasury will coordinate an exercise to conduct an analysis and assessment of the entire charging and collection system plus service levy rates, to provide advice on an alternative method that is friendly to businesspeople.

This will protect capital and business growth in the country, with ministers responsible for the business sector holding exchanges with businessmen to hear their challenges and views on how to solve them.

This will improve the business environment in the country in a stable manner, meanwhile as customs experts liaise with the Tanzania Chamber of Commerce, Industry and Agriculture  to sort out sticky issues in customs procedures, especially the valuation and sorting of cargo. 

All this work needs to be completed by July 10, the spokesman added