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TPC suspends sugar supply over electronic receipts

Tuesday January 12 2021
SUGAR PIC
By Daniel Mjema

Moshi. Sugar producer TPC has reportedly suspended supply due to failure to meet requirement by the Tanzania Revenue Authority (TRA) to install QR-Codes system in the electronic fiscal devices.

The TRA asked all traders to have installed the system which enables the EFDs to issue receipts with QR Codes by January 6, 2021, but TPC and some traders have failed to enter the system due to various reasons.

The sugar produced by the factory has not entered the market for a week now and sources tipped that there is a pile up of 30,000 tonnes of sugar in the warehouses.

When contacted for comment, TPC chief executive officer in charge of administration, Mr Jaffary Ally, confirmed the suspension of sugar supply and that there were ongoing talks with the TRA.

“Of course, we have that issue and we are still waiting for a letter of confirmation so that our sugar goes to the market through the old system. If it fails then there is no way, we will stop production,” he said.

He also confirmed the accumulation of more than 30,000 tonnes of sugar in their warehouses, and said that was due to the one-week standstill. The company wrote a letter seeking a two-month extension.

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“We have 30,000 tonnes in our warehouses and other rented warehouses. It is possible to stop production because we no longer have a safe place to store the sugar we produce,” he stressed. If the company stops production, there is a possibility for sugar shortages in the market around the four northern regions of Kilimanjaro, Arusha, Tanga and Manyara which are served by TPC.

The Kilimanjaro regional Commissioner Anna Mghwira said they had agreed to allow the sugar into the market as they sort the system issues. However, the director of taxpayer services and education for TRA Mr Richard Kayombo said the Taxman’s position was that no additional time would be provided.

“The correct answer is that no extension of time will be provided. We provided a month and the implementation must be done. They have to do what they are supposed to do,” said Mr Kayombo by phone.

“They were all given a month’s notice to have EFD machines that issue receipts with QR-Codes so the position of TRA is the same. Extension does not exist. So let all the traders do that,” he said.


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