Kariakoo shutdown: Tanzania's major traders on indefinite strike

Dar es Salaam. Traders in Tanzania, starting from Kariakoo, have announced an indefinite strike beginning Monday, June 24, 2024, until all their business challenges are resolved.

These traders claim that 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 business areas like Kariakoo.

A statement circulated on social media about the strike on June 22, 2024, directs all traders in Kariakoo to close their businesses, including their shops, offices, and any other activities starting from Monday, June 24, 2024, indefinitely.

The statement says they will continue with the strike until all their business challenges are resolved.

According to the statement, seen by The Citizen, traders in Mbeya, Iringa, Mwanza, Arusha, Ruvuma, Kagera and Rukwa regions 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," the statement directs.

The statement warns that traders will set up a task force 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," warns the statement.

Contacted on Saturday, June 22, 2024, the Kariakoo Traders Association chairman, Mr Martin Mbwana, confirmed the statement issued by the nationwide traders’ association.

Mentioning some of the grievances, he said, TRA has been unable to distinguish between street vendors and legitimate traders, leading to harassment of innocent players.

He mentioned that some traders have been selling goods without providing receipts while others have been complying with the legal requirements.

“Now, when someone comes from abroad or other regions, their goods are seized, claiming that the receipt value is too low, even though they sometimes buy from street vendors or shops,” he said over the phone.

He alleged that the TRA has quietly introduced a Value Added Tax (VAT) return system for traders where "someone who claimed Sh40 million has it cancelled and then gets a debt imposed on them, a situation that has created resentment among traders towards the government.

"We had previously met with the TRA and requested these issues be addressed, but we see that they continue oppressing and hurting traders," he said.

However, he hinted that he was travelling to Dodoma to meet with the minister of Finance to discuss the matter.

Responding to the sentiments, the TRA acting director for taxpayer education and communication, Mr Hudson Kamoga, said they were unaware of the trader’s complaints.

“We don’t know what the complaints are about. We have not received any information on what the complaints pertain to address them,” he said.

Mr Kamoga said there is a procedure for submitting complaints for resolution which hasn’t been followed.

“But if there is a TRA employee who has gone against the code of conduct, there are procedures to address that as well," he said over the phone.

He reaffirmed the TRA commitment to fulfilling its tax duties by the law, noting that everything done was being overseen by the law enacted by Parliament.

Mr Kamoga urged that complaints should be resolved through the use of available systems. “I can come to you and find that you have been incorrectly assessed or have tax challenges; the complaints resolution system allows a trader to file the claim to the taxman.

“It is the trader’s right to be heard and have their complaints resolved,” he said, “but complaining on social media is challenging,” he said.

He suggested that the minister had already submitted proposals relating to various taxes and levies, noting that this is the period these issues are deliberated and do away with those that do not align with procedures.

“Issuing receipts is mandated by law. All those with sales exceeding Sh11 million annually are required to issue Electronic Fiscal Device (EFD) receipts. It is a law that we are here to enforce. If we don’t enforce it, we will have failed to fulfill our duty,” said Mr Kamoga.

Meanwhile, it is not the first time that traders, especially from the largest East African Market, Kariakoo, have gone on strike claiming oppression and harassment by the taxman.

In May 2023, Kariakoo traders announced an indefinite strike urging the government to remove obstacles adversely affecting their businesses.

Traders were mobilised through posters and loudspeakers, encouraging each other not to open their shops until their issues were resolved.

After that situation, government leaders, including Prime Minister Kassim Majaliwa intervened to rescue the situation and businesses resumed normalcy.