Business man at Kariakoo area in Dar es Salaam shows placard after
closed their shops in protest to the use of Electronic Fiscal Devices
(EFDs)
In Summary
- The ministry of Finance and Tanzania Revenue Authority (TRA) said they were discussing with suppliers with a view to looking into importation costs and see the possibility of reducing the price of the device.
Dar es Salaam.The government
yesterday threw its weight behind the saga surrounding the Electronic
Fiscal Devices (EFDs) even as businesses in parts of the country
remained closed for the second consecutive day protesting the use of the
tax recording machines.
The ministry of Finance and Tanzania Revenue Authority (TRA) said they were discussing with suppliers with a view to looking into importation costs and see the possibility of reducing the price of the device.
However, the two said there was no way businesses could avoid using EFDs as they remained the best tool for accurate tax calculations and record keeping.
Traders in Dar es Salaam and some up-country regions are opposed to EFDs, saying the device is too expensive at Sh800,000 per piece. TRA said the actual price ranges between Sh600,000 and Sh778,000 depending on the model and type of a particular machine.
Deputy minister for Finance, Ms Saada Mkuya, said the cost of the device was reasonable and was actually lower compared to what it costs in other countries. “The cheaper ones you hear about are from China and are not similar to ours. These (ours) are specifically made for Tanzania revenue collection systems,” said Ms Saada as her deputy, Janet Mbene, nodded in agreement.
TRA deputy commissioner general Rished Bade said they were discussing with suppliers and tracking importing cost while looking into the possibility of bringing down the prices. He said TRA extended the deadline for acquisition and application of EFDs from November 15 to December 31 this year.
Meanwhile, the parliamentary economic, industry and trade committee reacted yesterday by asking the government to form a joint team with traders to address the EFD saga.
However, the House team said it strongly supported application of EFDs in collecting revenue and asked the taxman to increase public awareness.
“TRA can also discuss with suppliers to see if traders can pay in installments to reduce their burden,” said Mahmoud Mgimwa, Chairman of the committee.
The committee directed the government to remove import duty on the EFDs so as to bring down the cost and ultimately lower prices of the devices.
Application of EFDs was implemented in the first phase since 2010 covering Value Added Tax registered traders only.
The second phase kicked off this year targeting non-VAT registered traders with a gross turnover of between Sh14 million and Sh40 million per annum to pay income tax.
The ministry of Finance and Tanzania Revenue Authority (TRA) said they were discussing with suppliers with a view to looking into importation costs and see the possibility of reducing the price of the device.
However, the two said there was no way businesses could avoid using EFDs as they remained the best tool for accurate tax calculations and record keeping.
Traders in Dar es Salaam and some up-country regions are opposed to EFDs, saying the device is too expensive at Sh800,000 per piece. TRA said the actual price ranges between Sh600,000 and Sh778,000 depending on the model and type of a particular machine.
Deputy minister for Finance, Ms Saada Mkuya, said the cost of the device was reasonable and was actually lower compared to what it costs in other countries. “The cheaper ones you hear about are from China and are not similar to ours. These (ours) are specifically made for Tanzania revenue collection systems,” said Ms Saada as her deputy, Janet Mbene, nodded in agreement.
TRA deputy commissioner general Rished Bade said they were discussing with suppliers and tracking importing cost while looking into the possibility of bringing down the prices. He said TRA extended the deadline for acquisition and application of EFDs from November 15 to December 31 this year.
Meanwhile, the parliamentary economic, industry and trade committee reacted yesterday by asking the government to form a joint team with traders to address the EFD saga.
However, the House team said it strongly supported application of EFDs in collecting revenue and asked the taxman to increase public awareness.
“TRA can also discuss with suppliers to see if traders can pay in installments to reduce their burden,” said Mahmoud Mgimwa, Chairman of the committee.
The committee directed the government to remove import duty on the EFDs so as to bring down the cost and ultimately lower prices of the devices.
Application of EFDs was implemented in the first phase since 2010 covering Value Added Tax registered traders only.
The second phase kicked off this year targeting non-VAT registered traders with a gross turnover of between Sh14 million and Sh40 million per annum to pay income tax.
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