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Issuing of invalid receipts in revenue collection rampant

7th March 2013
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Tanzania Revenue Authority(TRA)

Despite efforts made by the government to ensure effective collection of revenues from businessmen through the use of the Electronic Fiscal Devices (EFDs), some businessmen still violate the proper use of the machines, issuing invalid receipts to their customers.

According to observation by this paper at various commercial centres in Dar es Salaam, most businessmen do not adhere to proper use of EFDs as they opt to issue invalid receipts to their customers.
 
While some customers hesitate to accept the fake receipts, once they recognize them, some accept them anyway since it has been common for the businessmen to issue them with fake receipts and the customers have gotten tired of always requesting to be given valid receipts. 
 
Speaking to this reporter at the Kariakoo commercial center, one of the customers said,“It is very difficult for me to abandon my errands at the market and start calling the Tanzania Revenue Authority (TRA), the government should find an alternative way to ensure that the EFDs are properly used for the benefit of the government,” he said.
 
According to the customers, the businessmen would only issue them with valid receipts as prove when they are under Police inspection at that time. 
 
When reached for comments, TRA Director of Tax payers’ Service and Education, Allan Kiula, attributed the misconduct to inadequacy of staff to ensure that all EFD users adhere to its proper use.
 
When asked whether the Authority plans on having alternative means to ensure that the government collects revenues effectively, he said there is no way out apart from educating the people on the essence of paying tax and asking for valid receipts.
 
He insisted that TRA aims at making its customers pay taxes without being forced after being well educated on the essence of paying taxes.
 
Kiula said that the proper usage of the EFDs helps TRA to make a fair tax estimate for a customer but according to him, customers who temper with the device are the ones who always complain of being treated unfairly when the Authority estimates an amount of tax they are suppose to pay. 
 
SOURCE: THE GUARDIAN