Miners say TRA ignoring directive on tax backlogs

By Guardian Correspondent , The Guardian
Published at 08:47 AM Oct 15 2024
Small scale miners
Photo: File
Small scale miners

OFFICIALS of the Tanzania Revenue Authority (TRA) were still charging miners on the basis of tax claim backlogs of several years ago and ignoring the government’s position on the matter, miners stated at an exhibition here yesterday.

They raised these concerns yesterday before the Songwe district commissioner, Solomon Itunda, at a mining sector exhibition in Saza ward, organised by the Edwin Luvanda Branding and Entailment Co.

The show involved small, medium and large-scale miners, meant to facilitate the exchange of ideas and experience relating to mining operations, with Michael Matoke, the Songwe Gold Family (SGF) managing director hosting the event.

He recalled assurances by the government that levies and taxes related to backlogged tax claims would be removed from the books, but TRA officials do not recognise that position, thus sowing confusion about the government’s position.

He similarly objected to the two percent levy imposed by TRA on every transaction relating to a mineral, saying the margin is excessively high.

Backlogged tax debt and levies contribute to gold smuggling because some miners lack capital, thus when officials calculate their debts while they don’t even have 20m/- in their accounts, it forces them into difficult decisions, he declared.

The show organiser urged local government officials to take their concerns to higher authorities to find a solution, as the current situation on when tax backlogs apply is a confusion to miners.

The organiser spoke for many in explaining that multiple taxes and levies imposed on their activities by the revenue authority and other public agencies compel the miners to smuggle gold and sell it to nearby markets.

He suggested reducing the transaction levy to one percent, given that miners also face an additional seven percent in taxes, resulting in a total tax burden of nine percent on their sales.

He pointed at additional levies imposed by the National Environment Management Council (NEMC), the Occupational Safety and Health Authority (OSHA) and various local councils, an overwhelming situation for miners.

“This multitude of levies poses a significant challenge, pushing miners towards smuggling—something they deeply wish to avoid,” he emphasised, citing another burdensome tax as the inspection fee.

He argued that it should be charged on the buyers and not the miners themselves, citing the fact that the law imposing a one percent tax on miners was enacted in 2017 to regulate mineral trading.

He said the law has not been adequately reviewed and has now become a burden for miners who do not even export minerals. “We urge the government to address this issue,” he said.

The DC responded that the district authorities would seek ways to consult with higher levels of government for resolution of these concerns, as the district team was in a position to appreciate what the miners feel in that regard.

He praised President Samia Suluhu Hassan for intense efforts in uplifting the mining sector, affirming that miners faced challenges in selling the minerals but there is now a scatter of markets, allowing them to sell without hassle.