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Tanzania: Close the EFD Use Chapter and Move On
Source: Tanzania Daily News (Dar es Salaam)
Source Date: Tuesday, January 07, 2014
Country: Tanzania
Created: Jan 07, 2014

It is not over yet with the electronic fiscal devices (EFD). Traders have protested against the price and use of the gadgets that have so far boosted revenue collection since they were introduced.

The government had extended the acquisition and use of the machines to December 31, last year, after the protest by traders in Dar es Salaam and other upcountry regions.

It explained the prices of gadgets ranged between 600,000/- and 778,377/- per piece, depending on the model and type of the machine contrary to reports by the protesting traders that the devices were sold at 800,000/-.

The government extended the deadline to allow more time for the intended taxpayers to buy and be adequately trained on the usage of the devices. However, it categorically said there are no more extension. The non-compliers by the February 1 will be penalised.

The EFD have boosted revenue collection by plugging holes of tax evasion used by unscrupulous traders. It is therefore understood when some of these traders protest against the use of the machines.

In their protests the traders conducted very serious distortion campaign about the prices and the group of traders required to use the machines. This explains why many of those who took part in the strike were not supposed to use the devices. The use of EFDs for this second phase is for non-VAT registered traders with formal businesses whose annual turnover is 14m/-. We, therefore, understand and support the decision by the government not to extend the deadline on the acquisition of the devices. It is true that the time for bargaining with the traders is over and therefore the non-compliers can no longer be entertained. We join the Deputy Finance Minister, Ms Saada Mkuya Salum, to appeal to the business people to comply with the directive on the fiscal devices and avoid confrontation with the state. We need to close the chapter over the use of the all-important devices and move on.

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