Importers demand legal action against corrupt customs officials

Traders and dealers of imported commodities have called upon the government to address rampant corruption among Customs Officials who handle goods at the Dar es Salaam port.

 

The traders, most of whom import all sorts of merchandise ranging from cloth and house wares to construction materials and electrical appliances say Tanzania Revenue Authority (TRA) officials are not transparent whenever they calculate duties for imported goods and when it comes to issuing receipts.

 

Speaking at a news conference in Dar es Salaam yesterday, Tanzania Business Community chairman John Minja, said that the tax payment system smacks corruption.  

 

“Tax collectors are not transparent such that there is no specific amount of merchandise that they peg their duty estimates on. The officials normally work on unexplainable estimations and what is worse is that even if one is charged 60m/- for a 20 or 40 feet container, the receipt issued may indicate something like 20m/- or so,” he said. 

 

Minja, who was re-granted bail by a Dodoma District Court on Wednesday, said it is not known where the balance goes but the truth always remains that the traders pay a higher figure on which they get an undervalued receipt.

 

He said it is important that the government should ensure that there is transparency in the tax administration system and all acts of corruption are eliminated.

 

The chairman who was in remand prison in Dodoma where he was charged with inciting traders not to use Electronic Fiscal Devices (EFDs), noted that the government losses billions of shillings every day to corruption in the taxation system.

 

“We propose that the government establishes a special business zone at the Kariakoo international market whose duty would be to direct the traders how to pay tax and the actual amount needed for special goods and quantity. 

 

The special zone should also ensure that taxes are paid directly to the government account and not cash to TRA as is the case now,” insisted the national chairman whose arrest prompted the traders to close shop for a week till last Wednesday. 

 

For his part, General Secretary of Tanzania Business Community Silver Kiondo, applauded Prime Minister Mizengo Pinda in Parliament last week who is in record for directing the Finance minister and other senior government officials to meet with the traders’ representatives so as to discuss their problems and come up with recommendations within a month.

 

Then, lawmakers put pressure on the government to resolve the ongoing conflict with the traders over the use of electronic fiscal devices (EFDs). 

The MPs also wanted the traders’ national chairman, Johnson Minja, who was on remand custody to be released. 

 

Minja’s arrest prompted the traders to shut down their shops in Dar es Salaam’s Kariakoo international market, Songea in Ruvuma, Mbeya, Iringa, Tanga, Arusha and Tabora regions.

 

However, this is not the first time traders had closed shop. They had many times gone on strike in a move to persuade the government to stop the use of EFDs.

 

Speaking after the Questions and Answers session, the Njombe North legislator Deo Sanga (CCM) said they held talks with various government leaders on the issue but nothing was done.

 

In November last year the Parliament endorsed the Miscellaneous Act which led to the increase of tax by 100 per cent. 

 

Sanga said the one month ultimatum as per the Prime Minister’s directive was too long since traders had closed the shops. Neither people were getting their day to day services nor did government institutions collect taxes.

For his part, the Arumeru East legislator Joshua Nasari (Chadema), said the government had to take stern measures to bring peace in the country.

 

“We have information that traders across Tanzania have closed their shops paralysing the economy, the government should react immediately,” he had said. 

 

Tabora Urban legislator Ismail Aden Rage (CCM) said it was not good for the government to remain silent over the issue because people were denied the services.

 

Citing, he said in Tabora Region shops had been closed hence people from far away such as Nzega, Sikonge and Kaliua had failed to get services.

Kawe legislator, Halima Mdee, (Chadema) urged the government to suspend Bunge session and discuss the issue more seriously.

 

“Deputy Speaker, Bunge Regulation 47(i) allows us to discuss this emergency issue for the development of our nation, why don’t we postpone this meeting,” she had asked.

 

For his part, Kisesa legislator, Luhaga Mpina (CCM) said in September last year the government formed a reconciliation committee with traders to discuss the challenges facing them.

 

The committee involved officials from Tanzania Revenue Authority (TRA), the Ministry of Finance and the traders which were tasked to discuss EFD gadgets and the taxes.

 

He said the committee failed to meet as anticipated, and the chairman of traders association was re-arrested because he did not honour his bail.

Mpina said he was not happy with the response in the Parliament by the Deputy Minister for Finance, Adam Malima, regarding the fate of traders.

 

“We beg the government to set free the chairman, so that we discuss the issue in order to save our economy from collapse,” he said. The Shadow Minister for Finance James Mbatia, asked the government to come up with a statement on the issue while making sure that the traders’ chairman was released on bail.

 

“This issue had taken a long time, it seems there is no trust between the government and Parliament, let us solve it so as to continue with other important business,” he reiterated.

 

Responding to the MPs concerns, Deputy Speaker Job Ndugai, directed the Parliamentary Steering Committee to sit down and come up with recommendations.

 

Speaking later before adjourning the morning session, Ndugai, said the Steering Commitee had agreed to allow the measures taken by the government in addressing the issue.

 

Finance Minister Saada Mkuya had said the government was working on plans to take measures against the traders for allegedly protesting against the use of electronic fiscal devices (EFDs).

 

Speaking yesterday, Chairman of the Kariakoo Business Community, Philimin Chonde, said activities have normalised at the market and hence people from upcountry, as well as other countries are happily doing shopping for Easter.

“We are currently working on strengthening the security system at the market,” he said while applauding the government for listening to their grievances and releasing their national chairman, Minja.

 

A quick survey conducted by this paper yesterday at the market has shown that most of the shops were opened yesterday and people were busy shopping.

SOURCE: THE GUARDIAN