Tanzania directs revenue authority to address shop owners' strike over tax disputes


  • World
  • Friday, 28 Jun 2024

DODOMA, June 27 (Xinhua) -- Tanzanian authorities on Thursday directed the Tanzania Revenue Authority (TRA) to take measures to end a four-day strike by shop owners in more than eight regions across the country.

Addressing a news conference in Dodoma, the capital of Tanzania, Chief Government Spokesperson Thobias Makoba said the directives were issued following a meeting between Prime Minister Kassim Majaliwa and leaders of traders' associations.

Makoba said that the TRA was directed to suspend the inspection of electronic fiscal device receipts for tax collection and stop using force to collect taxes.

On Monday, shop owners in Tanzania's eight regions shut down their shops and went on strike over what they termed as unfair tax estimations by revenue authorities.

On Wednesday, Minister of Finance Mwigulu Nchemba told parliament that the government was addressing the traders' tax concerns, noting that accommodating all the traders' issues immediately could significantly impact the execution of certain national development projects.

He cited one of the traders' demands for a reduction of the Value Added Tax from 18 to 12 percent, noting that this would result in a revenue shortfall of 600 billion Tanzanian shillings (about 227.8 million U.S. dollars), thereby affecting the execution of ongoing projects.

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