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By Mwinyi Sadallah
The Tanzania Revenue Authority (TRA) has defended its arrangement to tax
imported items to Tanzania Mainland through Zanzibar despite long standing
complaints on the arrangement, regarded as double taxation.
TRA Commissioner General Harry Kitilya told journalists at a media conference that his office simply charges a difference as a result of low taxes charged by Zanzibar government compared to those by the Union government.
According to Commissioner Kitilya the imports to Zanzibar are subject to low taxes as per tax regime in the isles. But if the same are transported to the Mainland, the appropriate rates for the commodities apply hence the need for payment of a difference.
“We normally go through the documents on the imports which are originally offloaded in Zanzibar and the taxes paid there…charge the difference to match taxes charged on the Mainland; this is the responsibility of the particular businessman,” affirmed Kitilya.
TRA Commissioner General Harry Kitilya told journalists at a media conference that his office simply charges a difference as a result of low taxes charged by Zanzibar government compared to those by the Union government.
According to Commissioner Kitilya the imports to Zanzibar are subject to low taxes as per tax regime in the isles. But if the same are transported to the Mainland, the appropriate rates for the commodities apply hence the need for payment of a difference.
“We normally go through the documents on the imports which are originally offloaded in Zanzibar and the taxes paid there…charge the difference to match taxes charged on the Mainland; this is the responsibility of the particular businessman,” affirmed Kitilya.
The TRA boss noted that East Africa Community (EAC) member countries have common tariff rate under the regional Customs Union that applies across all countries, including Tanzania.
He said all imported commodities are subjected to a system which identifies them and indicates the tariffs to be charged.
Asked on the complaints over the commodities from the isles, Kitilya said what is charged in reality is the difference to bring about uniformity to taxes over commodities imported directly to Mainland.
“There are not two different taxes charged… it’s just a difference, said Kitilya who is attending EAC Commissioners General of the Revenue Authorities meeting held at Magapwani Zanzibar.
There have been perennial complaints from isles businessmen, legislators and politicians over what is termed as double taxation on the commodities originally imported to Zanzibar, then to Mainland.
Prior to 2010 general election it was reported that the deemed problem had been solved, following high level discussion between officials Zanzibar and Union governments but TRA has continued with the arrangement.
There are reports that TRA position has prompted a number of businessmen from the isles to shift their bases of operation from Zanzibar to the Mainland.
The commodities said to have been affected by the arrangement include vehicles, spare-parts as well as domestic electronic appliances.
The Zanzibar government decided to lower the tax tariffs to 12. 5 per cent for food commodities such as rice, wheat flour and sugar (instead of 25 per cent for sugar and wheat flour and 75 for rice) imported from EAC countries, in a bid help the weaker isles economy.
The matter, dubbed ‘double taxation’, has persisted for years and the Union Government executives have explained it several times but the complaints from Zanzibar seem to be far from over.
On the regional meeting, Kitilya said it aimed at reviewing the way of executing day-to-day duties and how successful EAC countries are in meeting the revenue collection targets.
He said the regional countries have in place a programme to improve revenue collection efficiency for the betterment of the countries’ economies.
SOURCE: THE GUARDIAN
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I was personally expecting this TRA position, as i saw the long complaints by island Businessmen were baseless!
ReplyDeleteYou can't politisize every thing!..this is not among the union problems.
I can still remember another shamful scenario in 2011, when a CUF member of Parliament asked the union Gvt. to writeoff ZECO 500 billion debt by TANESCO and term it as among the union problems.
Deputy energy minister, Adam Malima had this to say " this has got nothing to do with the union, the issue is ZECO were supplied with electricity and sold it to the citizens, not for free but for money, the question is where is the money now?
Mr Adhubany seem to know next to nothing on what is being contested here, will he be happy for the ZRB to collect taxes on Tanganyka mainland? What mandate does TRA as union organ has in chargging taxes (double) ? does he know what TRA is?
ReplyDeleteIf Tanganyka insist on charging for goods that alredy has been charged in Zanzibar as part of this so called Tanzania - what use is this hypocricy called "union"?
Zazibar will loose nothing out of this so called "union"; infact it will gain a lot, all this upuuzi of TRA will cease to exist if "union" ceace to exist.
Kama hakuna muungano na watu wanataka kusafirisha bidhaa kutoka Znz kuenda bara na vice versa unavofikiria wewe kua then bara ndio hawatatoza ushuru? Naona biashara kupeleka bara haitakuwepo outside the union na hio 'double taxation' ndio tutaijua hapo na machungu yake.wafanyabiashara wanapenda kufanya kodi Kama sehemu ya mapato yao.
ReplyDeleteNd Toni usiwe kama hukusoma, kama hakuna muungano kwa kifupi kila mto atatoza ushuru watakavyo kwa kuwa kila nchi itakuwa inajitegemea lakini kutakuwa hakuna unafiki wa muungano hapa, Watanganyika kwa kifupi wapo kuwanyonya wazanzibari huo ndio msingi wa muungano na vile vile kudhibiti waisilamu ambao ndio wengi kule znz na hilo ndilo hasa linalowapa kichwa watanganyika kutaka muungano uendelee japo kwa mabavu , amkeni ndugu wawakilishi na wananchi tupiganie nchi yetu iwe huru , huu upumbavu wote wa kina TRA na NACTE na NECTA utakwisha.
ReplyDelete