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Electronic devices crucial for revenue collection, says TRA

10th February 2013
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Tanzania Revenue Authority (TRA) sticks to its plan on the use of Electronic Fiscal Devices (EFDs) System, with the aim of enhancing revenue collection and improving expenditure management.

Patrick Kassera, TRA Commissioner for Domestic Revenue Department, told this reporter that EFDs will ensure accountability of sales by traders to allow for accurate and translucent assessment of payable taxes and also secure trade control of stocks and record of business transactions.

The first phase of EFDs covered 13,400 traders out of 16,000, which is equivalent to 93 per cent of VAT registered traders, Kassera said in an interview recently. “The use of EFDs will be cascaded to Non VAT registered Traders from March 2013…”

He said the phase is intended to cover non-VAT registered traders with an estimated annual sale turnover of Sh14bn and well over 200,000 traders are expected to come on board.

The use of EFDs has several advantages and on top of that list is the fact that it will encourage sellers to issue receipts for all goods sold or service rendered.

It will also motivate buyers to demand fiscal receipts for every purchase made and hence cultivate a record keeping culture that allows for accountability.

The TRA commissioner acknowledged that there are many challenges that require concerted effort from the business community which is made up of EFDs users and government organs, if they are to achieve smooth implementation of the EFD regime especially rolling their usage to Non- VAT registered traders.

Kassera called on stakeholders to enforce legal requirement for every purchased good and service rendered to be accompanied by fiscal documents and also to enforce the checking of transport vehicles to verify the possession of fiscal receipts for the goods they carry.

TRA is a government semi-autonomous agency, under the Minister for Finance, established with the major functions to assess, collect and account for all central government revenue, administer effectively and efficiently all the revenue laws of the central government.

It is also tasked to advise the government on all matters related to fiscal policy, promote voluntary tax compliance, improve the quality of services to the taxpayers, counteract fraud and other forms of tax evasion and to produce trade statistics and publications.   

SOURCE: GUARDIAN ON SUNDAY