MWANZA, TANZANIA-- Tanzania expects its revenue collection to increase drastically with the Tanzania Revenue Authority (TRA) about to introduce a special tax scheme to accommodate more than 15 million petty traders within its tax net.
TRA Deputy Commissioner for Domestic Revenue Michael Mhoja said in a recent interview in this northern Tanzanian city on the shores of Lake Victoria that arrangements for the ambitious scheme had already been launched. To start with, the TRA has embarked on a special mission to identify all petty traders operating in the country and issue them with special Identity Cards for easy management, he added.
Mhoja said the tax collection agency had set a target of registering five million petty traders annually to meet the 15 million target in three years as part of the government strategy to increase revenues through widening its tax base.
So, we have worked on this ambitious arrangement and concluded that it works ... studies show that few people buy from malls and shops, with the majority buying from petty traders ... this is the basis of starting to tax them while giving them sustainable capacity-building programmes, said Mhoja.
A strong TRA team under Commissioner-General Charles Kicheere is in the country's Lake Zone to, among other matters, meet entrepreneurial groups and petty traders who they issue with special IDs as directed by President John Magufuli.
While in Mwanza region last year, President Magufuli ordered the local government authorities countrywide to stop harassing petty traders and instead create an enabling environment for them to operate profitably and to willingly pay statutory government revenues to contribute to building the national economy.
Source: NAM NEWS NETWORK