Tanzania government, traders reach agreement to end nationwide strike

Dar es Salaam. The government and the Tanzania Traders Association (JWT) have agreed to end the nationwide strike after reaching 15 resolutions addressing some of the 41 grievances raised by the business community.

This announcement was made on Thursday, June 27, 2024, by Chief Government Spokesperson Mr Thobias Makoba during a press conference about the ongoing traders’ strike.

Mr Makoba stated that during the meeting between business leaders and Prime Minister Kassim Majaliwa, 41 grievances were presented for resolution. By the end of the meeting, they had agreed on 15 issues requiring urgent implementation.

The Chief Spokesperson further noted that among these resolutions, the Tanzania Revenue Authority (TRA) has been ordered to immediately halt all clampdown exercises as well as all other follow-up activities on EFD receipts throughout the country until August 2024.

He said despite this suspension, traders are encouraged to continue issuing sales receipts, while TRA has been directed to establish an efficient system that will facilitate the issuance of essential purchase documents during the importation of goods starting in July 2024, with proper procedures involving all key stakeholders.

Additionally, he said that the government has instructed the Tanzania Ports Authority to quickly increase Inland Container Depots (ICD) to facilitate the de-consolidation process of cargo.

Mr Makoba also said that TRA has been directed to enhance public education on tax matters and tax reforms that are being implemented to increase traders' understanding of tax issues.

Among the resolutions, it was also agreed that relevant government institutions and business councils should be fully involved at all levels, and TRA has been directed to identify and properly manage a list of eight products that will have indicative prices, similar to the pricing for used vehicles.

"These products are kangas, shirts, other clothing, cosmetics, underwear, scarves, and vests; the government will continue organising and providing a conducive environment for small traders who are not in formal areas to facilitate the management, monitoring, and formalisation of their businesses."

According to Mr Makoba, in the medium term, the government will continue to review existing tax rates to enable traders to pay taxes peacefully and fairly according to the value of their businesses.

He said another resolution is that in the short and medium term, the government will address all traders' challenges presented to the government, especially those that do not require policy or legal changes.

"For further improvements, the government directs TRA to complete the improvement of the Tanzania Customs Integrated System (TANCIS), which will include an auto-valuation module that will provide transparency and fairness in tax calculations by January 2025," he said.

Experts from the Tanzania Bureau of Standards (TBS) and TRA have been directed to complete adjustments to the ICT system to ensure that cargo entering the country through container deconsolidation can be cleared using the taxpayer's (TIN) registration number of the owner of the cargo instead of the agent's TIN, without any additional costs to the taxpayer.

He noted that this exercise is expected to be completed by July 2024, and the government has also directed the Ministry of Finance to coordinate the process of analysing, assessing, and reviewing the entire system of service levy collection and rates.

The Ministry is also required to advise on alternative collection methods that will be more business-friendly to protect capital and business growth in the country.

Regarding foreign traders, the government, through the Prime Minister's Office (Labour, Youth, Employment, and Persons with Disabilities) and other relevant authorities, will continue to strengthen the inspection of work permits for foreigners to ensure that permit holders comply with the conditions of these permits according to the country's laws.

"Strict actions will be taken against those who violate the laws, regulations, procedures, and conditions of work permits, including expelling them from the country and taking legal action against the employers involved," said Mr Makoba.

Ministers responsible for the business sector will meet with traders nationwide to listen to their challenges and receive suggestions aimed at continuously improving the business environment in the country.

Customs experts are also expected to meet with the business community immediately to discuss customs procedures, especially valuation and cargo clearance, with the issue expected to be resolved by July 10, 2024.

He noted that the Prime Minister's Office (Policy, Parliament, and Coordination) will continue to coordinate the issue of providing quarterly feedback to traders on the implementation of the resolutions between traders and the government.

As a result of these resolutions and government directives, both parties have agreed that business operations across the country will continue as usual to provide Tanzanians with the services they deserve.