Businesses earning 45,000/- daily must use EFDs: Taxman

Businesses earning Sh45,000 every day and are not using electronic fiscal devices (EFD’s) come November 15th will face legal actions including a Sh3 million penalty.

The Tanzania Revenue Authority (TRA) said yesterday that all businesses with a turnover of Sh14 million per year are supposed to issue electronic tickets.

This according to TRA, the aim is to expand the tax base which in turn will increase revenue collection in the country.

“There are many businesses in the country earning starting Sh45,000 every day but they never pay tax, so with the second phase of EFD’s all these businesses are incorporated in the tax base,” said TRA director of Education and Taxpayer Services Richard Kayombo.

According to Mr Kayombo business owners were given seven months period to purchase EFD’s voluntarily but so far less than 10 per cent have purchased the devices.

He said that initially the Authority targeted at least 200,000 businesses, but the aim is to ensure that all businesses with the said earning are using EFD’s.

For her part Ms Generose Bateyunga, the TRA deputy commissioner for Domestic Revenue, kept it clear that this exercise doesn’t mean that the referred businesses are paying Value Added Tax.

“Some traders have been complaining that the authority has imposed VAT on their businesses, but the truth is VAT is paid by businesses earning from Sh40 million to above that level a year,” said Ms Bateyunga.

She said that businesses like pharmacies and petrol filling stations which are not entitled to paying VAT will now be subjected to purchase EFD’s so that they can be taxed depending on their income.

“We hope that the use of EFD’s among other things will enable the country to increase revenue collection which in turn will enable Tanzanians to access social services and eliminate poverty in the country,” she said.
Source: The Citizen, reported by Veneranda Sumila from Dar es Salaam, Tanzania
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