Africa

Tanzania traders to go on strike from Monday over tax, regulatory grievances

A vendor sells green peppers on Mabibo Street in Dar es Salaam, Tanzania. (Photo: Ericky Boniphace/AFP via Getty Images)

By Lucy Mumbi | Sunday, June 23, 2024

Among other demands, the traders want addressed include the removal of service levy, abolition of government levy, and elimination of hotel TV tax among others.

Tanzania market traders have announced that they will down their tools starting June 24, 2024, to address their grievances related to taxes and regulations.

In a post, the traders claim the Tanzania Revenue Authority (TRA) has been harassing them by deploying a task force that seizes goods under the pretext of verifying their value, despite the presence of both street vendors and legitimate traders in markets like Kariakoo.

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"TRA has been harassing and seizing goods, making us feel like thieves of our own property. Receipts are not taxes but rather harassment for traders, " read the post.

They complained of frequent rejections of accountants' calculations, saying the situation has led to unpayable debts.

In a statement dated June 22, 2024, all traders in the Kariakoo Market were directed to close their businesses, including their shops, offices, and any other activities starting Monday, until all their business challenges are resolved.

Traders in Mbeya, Iringa, Mwanza, Arusha, Ruvuma, Kagera and Rukwa regions noted that they will indefinitely start closing their businesses from Tuesday, June 25, 2024.

"From Wednesday, June 26, 2024, all traders across the country will unite in closing their businesses until all our challenges receive permanent solutions," read the statement.

Inspection of offices

It adds that a task force will be formed to inspect offices and businesses that have violated the directive to join forces, in fighting against what was referred to as an "oppressive tax regime."

"Traders who will defy this order will face the consequences," the statement warned.

Among other demands, the traders want addressed include the removal of service levy, abolition of government levy, and elimination of hotel TV tax among others.

They argue that fines should be proportional to the size of the business, similar to vehicle fines.

Additionally, they want all taxes to be consolidated into one basket and VAT to be collected at factories, airports, and ports, with regular taxes on the streets.

According to the traders, the maximum estimated tax should start at TZS35,000 and be capped at TZS1 million, without further increases.

They further demanded the resignation of Tanzania's Prime Minister, the Minister of Finance, the Minister of Industry and Trade, and their principal secretaries for failing to fulfil their duties.

"Let the whole country speak with one voice; we will achieve great success," the traders said.