Over 150 Masasani retail traders yesterday received tax payer education from the Tanzania Revenue Authority (TRA), apparently in response to their demands for clarification on national tax administration mechanisms.
TRA regional tax payer services and education Zakeo Kowero said it is not only the business community that is bound to pay taxes, but also
every person is potential client of the authority.
TRA, he added, had set taxpaying guidelines, basing on tax payer capacity and business returns, terming it “friendly and clear computation method.”
According to Kowero the method is “in compliance with section 80 of Income Tax Act 2004-Record Keeping,” where turnover does not exceed Sh4 million, that is to say the venture should enjoy zero taxes.
And when the turnover is between Sh4 million and Sh7.5 the payable tax is Sh200,000 annually, four per cent of the turnover, in excess of sh4, 000,000.
Furthermore, if the turnover is between Sh7.5million and Sh11.5millon the payable tax is Sh424, 000 which makes 5 per cent of the turnover in excess of Sh7.500,000.
When the turnover is between Sh11.5million and Sh16million, payable tax is Sh728,000, a Sh340,000 plus 6 percent of the turnover in excess to 11,500,000.
The TRA tax payer education comes in the wake of a group of workers storming the authority offices early this week demanding explanation on the national tax administration mechanisms.
The retailers took the action after a long standing wrangle between the business community and TRA over various taxation models, applied by the authority.
Business group representative Andrew Mangole had told reporters that the taxpaying community needs vital information on what to pay as tax instead of short notices from TRA inspectors.
“We are always dismayed by the TRA officials' style of short notice visits to the business premises...we are denied a clear formula on what, how much and when we should pay,” Mangole asserted.
He went on saying that tax education among the business community would eliminate unnecessary misunderstanding between the TRA and the business division, which forms its major client cluster.
On her part Mwanisha Katwilla stated that for a long time they have remained short of tax payer education to the effect that they believed that small entrepreneurs were not eligible tax payers.
Instead, they thought taxes were meant only for big ventures.
TRA regional tax payer services and education Zakeo Kowero said it is not only the business community that is bound to pay taxes, but also
every person is potential client of the authority.
TRA, he added, had set taxpaying guidelines, basing on tax payer capacity and business returns, terming it “friendly and clear computation method.”
According to Kowero the method is “in compliance with section 80 of Income Tax Act 2004-Record Keeping,” where turnover does not exceed Sh4 million, that is to say the venture should enjoy zero taxes.
And when the turnover is between Sh4 million and Sh7.5 the payable tax is Sh200,000 annually, four per cent of the turnover, in excess of sh4, 000,000.
Furthermore, if the turnover is between Sh7.5million and Sh11.5millon the payable tax is Sh424, 000 which makes 5 per cent of the turnover in excess of Sh7.500,000.
When the turnover is between Sh11.5million and Sh16million, payable tax is Sh728,000, a Sh340,000 plus 6 percent of the turnover in excess to 11,500,000.
The TRA tax payer education comes in the wake of a group of workers storming the authority offices early this week demanding explanation on the national tax administration mechanisms.
The retailers took the action after a long standing wrangle between the business community and TRA over various taxation models, applied by the authority.
Business group representative Andrew Mangole had told reporters that the taxpaying community needs vital information on what to pay as tax instead of short notices from TRA inspectors.
“We are always dismayed by the TRA officials' style of short notice visits to the business premises...we are denied a clear formula on what, how much and when we should pay,” Mangole asserted.
He went on saying that tax education among the business community would eliminate unnecessary misunderstanding between the TRA and the business division, which forms its major client cluster.
On her part Mwanisha Katwilla stated that for a long time they have remained short of tax payer education to the effect that they believed that small entrepreneurs were not eligible tax payers.
Instead, they thought taxes were meant only for big ventures.
SOURCE: GUARDIAN ON SUNDAY
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