Talks drag on as traders’ strike enters second day

Dar es Salaam. Some shops remained closed in various locations on Tuesday as the traders’ strike entered its second day even as leaders remained optimistic that ongoing meetings will soon yield positive outcomes.

In Kariakoo, Dar es Salaam, some traders had closed their businesses since Monday to press the government to address their grievances, including allegations that the Tanzania Revenue Authority (TRA) was harassing them by deploying a task force that seized their goods.

As of Tuesday, the strike had extended to some areas in Mbeya, Dodoma and Mwanza, but other traders opened their shops as usual in some localities in Dar es Salaam, including Kariakoo, Tandika, Mbagala and Tegeta.

Traders’ national chairman, Mr Khamis Livembe, told The Citizen on Tuesday that negotiations with various sectoral ministries have yielded some positive results.

“We have managed to agree on some areas. It is now a question of how to implement them,” he said.

Mr Livembe added that the group and the government agreed on a number of issues since last year.

“Seriously, we can see light at the end of the tunnel,” he said by telephone from Dodoma.

Mr Livembe is leading a team of traders’ representatives from various regions of the country to negotiations with the government.

So far, he said, the team has held discussions with officials from ministries of Finance, Trade and Industry, Planning and Investment and the Prime Minister’s Office as well as the Attorney General.

The last thing was also slated to meet and hold talks with the Parliamentary Budget Committee on Tuesday.

This happens as the Parliament is slated to approve Tanzania’s Sh49.35 trillion budget for the fiscal year 2024/25 today after several days of debating the plan.

Mr Livembe said his team will also hold discussions with the Prime Minister, Mr Kassim Majaliwa on the matter.

“After all the talks and meetings that would be concluded today (Tuesday) evening, we will be in a position to say what has been agreed upon,” he said.

He advised his fellow traders to start opening their shops as negotiations continue because the strike has already brought negative outcomes to various customers who buy their merchandise from Kariakoo.

A spot check at Kariakoo on Tuesday revealed that most shops remained closed, destabilizing the rule of demand and supply to send up prices for some products like women’s clothes and other items.

Some traders who spoke to The Citizen on Tuesday said their strike would continue until the government sees a need and responds to their concerns, saying there were ready to suffer losses.

“No trader wants to make a loss for two days consecutively but if you see those decisions, it means that traders are tired of promises that are not implemented,” said Mr Ahmed Ally.

He said they were waiting for the government’s statement regarding the challenge which has already had an impact on other regions where traders have also started to close their shops.

For her part, Ms Efrasia Msina told The Citizen, “I have come to Kariakoo to buy women’s clothes that known commonly as vijora but with fewer shops opening, the prices have gone up.”

Before the strike, it fetched Sh5.000 but with several shops closed, the prices has gone up to Sh5500.

“Though I have already taken orders from my customers, I have to go back until the strike ends because I will not get any profit if I buy them at that price,” she said.

Last Friday, an unsigned flyer was circulated on social media, urging businesspeople in Kariakoo, Dar es Salaam, and other parts of the country to keep their shops closed indefinitely from Monday until all their grievances had been addressed.

However, on Monday evening the government said it was suspending inspection activities for electronic fiscal devices (EFDs) and electronic tax stamp activities carried out by TRA through the Kariakoo Tax Region.

The Minister of State, President’s Office (Planning and Investment), Prof Kitila Mkumbo, said the exercise will be conducted through a proper procedure that was being prepared for Kariakoo-based traders.

He outlined some resolutions from a meeting between the trader’s leaders and the government. The meeting was convened by Finance minister Mwigulu Nchemba, Industry and Trade minister  Ashatu Kijaji and other senior government officials.

Traders want the government to put all taxes within a single collection basket while the fines imposed on them whenever they go contrary to business norms must also be reduced to the level of traffic offenses.

They also claim that the issuance of receipts should not be considered another tax because, to them, they (receipts) are just like a new form of harassment. They want the TRA to stop a tendency to seize their goods and its (TRA’s) tendency to refuse to accept traders’ financial statements that have been prepared by registered accounting professionals.