The Tanzania Revenue Authority (TRA) has been directed to halt all operations involving the arrest of traders and the inspection of electronic fiscal device (EFD) receipts for one month.
This directive comes as part of a resolution from a recent high-level meeting between government officials and leaders of traders’ associations, aimed at addressing ongoing disputes and business disruptions.
Chief Government Spokesman Thobias Makoba announced the decision late yesterday, noting that it was the first among 15 resolutions agreed upon to ease tensions and facilitate smoother negotiations. These measures come in response to a nationwide stoppage of wholesale business activities in major urban centers, particularly affecting the Kariakoo market in Dar es Salaam, a critical hub for wholesale trade.
The suspension of EFD inspections aims to provide temporary relief to traders while the government works on establishing better procedures for using these devices. The ongoing tension has been fueled by traders’ grievances over the current EFD system, which they argue is cumbersome and prone to malfunctions that can disrupt business operations.
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EFDs are mandatory devices for all businesses in Tanzania, designed to enhance sales and tax management by ensuring that all transactions are recorded and receipts issued. The TRA had been conducting inspections to ensure compliance, which often led to penalties and arrests for non-compliant traders. However, the recent directive mandates a pause on these enforcement actions to allow for dialogue and procedural improvements.
In the meantime, the government is committed to working closely with traders to address their concerns. The goal is to create a more conducive business environment that aligns with legal requirements while being sensitive to the operational realities faced by traders. The outcomes of these discussions will likely shape future policies regarding tax collection and business regulation in Tanzania.
The decision to suspend EFD inspections reflects the government’s responsiveness to the needs of the business community and its willingness to engage in constructive dialogue. By temporarily halting these inspections, the government aims to build trust and find sustainable solutions that benefit both the traders and the nation’s economy.