Traders welcome TRA decision on closures

Dar es Salaam. Members of the business community have hailed the Tanzania Revenue Authority (TRA) for its decision to stop closing down businesses due to tax arrears.

However, they want the decision to be aligned within the legal framework so that it is not taken as personal goodwill gesture for certain individuals.

The reaction comes a day after TRA announced that no business will be closed down due to tax arrears.

TRA’s taxpayer services and education director Richard Kayombo said in Dar es Salaam on Monday that the TRA Commissioner General, Mr Charles Kichere, declared last November that no business would be closed due to tax arrears and that if need be, it was only him (the Commissioner General) that would issue a special permit to have a business closed.

Reacting, members of the business community welcomed the decision, saying it came at an opportune time when traders were complaining about the increasing trend of shutting down businesses.

“We’re happy with the decision but we want TRA to go further and work on the legal system and especially factors that force traders to dodge paying taxes willingly,” Tanzania Business Community secretary general Abadallah Mwinyi said.

He said last year the tax authority issued tax amnesty on interest to businesses that had failed to pay their tax arrears. This, he said, was a good gesture and something that must be sustained to nurture the growth of Tanzanian enterprises.

He noted that while such decisions were received with open arms, they did not offer permanent solutions to businesses that are faced with a harsh tax regime, making it difficult for business persons to operate hence opting for closure.

He explained that the business community has sought dialogue with various government leaders so as to find solutions to challenges deemed impeding businesses.