Government, Kariakoo traders reach deal to end strike

Dar es Salaam. Prime Minister Kassim Majaliwa yesterday convinced traders in Kariakoo, Dar es Salaam, to end their three-day strike after promising that the government would address their grievances.

Mr Majaliwa presided at an open-air meeting at Mnazi Mmoja grounds, where traders were told to express themselves without any fear of repercussions.

The meeting was punctuated by drama and strong words directed at some Cabinet ministers, Tanzania Revenue Authority (TRA) and the Police Force.

Earlier, Mr Majaliwa arrived at the venue accompanied by a high-powered team that included Investment, Industry and Trade minister Ashatu Kijaji, Finance and Planning minister Mwigulu Nchemba and several senior government and regional officials.

The traders almost immediately took the two ministers to task, accusing them of not doing enough to protect businesspeople’s welfare and livelihoods.

Some of the grievances aired by traders included a heavy tax burden, inefficiency in the electronic fiscal devices (EFDs) system, harassment, frequent seizure by TRA of foreign buyers and merchandise bought from local traders, extortion and “arrogance” among regulatory authorities.

Putting the matter to rest at least for now, Mr Majaliwa outlined a number of measures, including the setting up of a committee comprising government officials and traders’ representatives.

The committee will collect views and propose lasting solutions to issues raised by traders in yesterday’s meeting.

“We will have a joint committee that will discuss issues that have been raised here and jointly work on them because most of these issues need to be analysed and reviewed individually,” he said.

“The team will discuss these issues for two weeks and propose the way forward and you will be given feedback.”

The 14-member team includes permanent secretaries from the Prime Minister's Office, Investment, Industry and Trade ministry, as well as the Social Development, Gender, Women and Special Groups ministry.

Others from the government are the deputy permanent secretary in the Finance and Planning ministry, the Dar es Salaam Regional Administrative Secretary (RAS), TRA director of research and policy and TRA commissioner of domestic tax.

Traders’ representatives include the national chairperson of the traders association, Kariakoo Traders Association chairperson, Tanga Traders Association chairperson, prominent businessman Fred Ngajiro “Vunjabei”, Mr Omar Hussein from Zanzibar and two others, who were identified only as Mpandila and Mama Bonge.

Mr Majaliwa promised the traders that the government will suspend taxes charged on storage facilities until the relevant regulations are reviewed.

He also directed that all merchandise that has been seized and stored at government warehouses be released to traders and all tax arrears be reviewed and warned against derogatory statements by regulatory authorities.

“Corruption is still a major issue in our country. Despite the government’s concerted efforts, this issue keeps cropping up. I thus direct agencies such as TRA and the Police Force to reassess themselves because this is not acceptable,” said PM Majaliwa.

Traders’ views

Mr Awadhi Mpandila said thorough review of the tax system could resolve most of the problems traders were complaining about.

“The EFD system, for example, is not in sync with the system at the port and this has created loopholes for corruption and disputes between traders and the authorities,” he said.

Mr Chuki Shabani vented his anger on Dr Nchemba, blaming him for coming up with taxes that are “impossible to pay”.

He said the minster was also to blame for the “arrogance” shown by some officials who are in contact with traders.

“Because the Prime Minister has said we will be protected, I’m saying without batting an eyelid that TRA’s arrogance is caused by their boss, the Finance minister. If he can’t listen to our representatives in Parliament, will he listen to us? He says he is a doctorate holder, who cannot talk to us witchdoctors,” Mr Shabani said.

He also accused Dr Kijaji of attempting to discredit traders and their grievances in Parliament Monday.

Mr Ngajiro said inadequate tax education and training are among key factors leading to reluctance to pay taxes.

While suggesting the formation of a joint committee, Mr Ngajiro also advised that the tax system be reviewed and categorised according to sectors.

“In paying VAT (value added tax), it is better we have different rates for different sectors, it's problematic to charge construction material traders the same rate as those who sell clothes,” he said.

Mr Bernard Atanasi said the number of foreign traders who come to Kariakoo has decreased over time because they are regularly being apprehended by the authorities.

“After being apprehended, foreign customers have to stay here for an additional two to three days as they wait for their goods to be released, which means that they lose both time and money,” he said.

Ms Mary Ramadhani said traders are also having trouble disposing of waste despite paying “exorbitant” charges for the service, and added that the reason was delayed payment to contracted firms by the relevant authorities.