43m/- lost in unpaid music, video taxes

20Apr 2016
Grace Kambaulaya
The Guardian
43m/- lost in unpaid music, video taxes

TANZANIA Revenue Authority (TRA) has lost over 43m/- in tax revenues from untaxed sales of music and video components.

Richard Kayombo

The loss was made public yesterday in Dar es Salaam during press briefing by the TRA Director of Taxpayer Service and Education, Richard Kayombo.

He said the authority uncovered the loss during an operation that it conducted in collaboration with Yono Auction Mart Limited along with the police between February and March this year.

The Director said the crackdown unveiled that 656,579 compact disc (CDs) and digital video discs (DVDs) worth over 1bn/- were being sold illegally in the Tanzanian market.

“These traders conducted production and sales without following the law, among the illegal consignment 650,101CDs and DVDs were imported and 6,478 CDs were produced illegally right here in the country,” he detailed.

“According to the 2012 film and music tax law, those identified breaking the law will be fined 5m/- or face three years jail time,” Kayombo warned.

“TRA warns the public to be very careful when purchasing these products...you have to make sure that they have duty stamps or send the information to police when you find people selling fake products,” he added.

In the operation, seven shops selling CDs and DVDs were closed after they were found with a total of 47 machines used to produce the CDs and DVDs...4 computers and 1 unit power supply (UPS) were also confiscated from various businesses in Kariakoo and several other suburbs in Dar es Salaam,” he detailed.

“We have asked shop owners to close their shops and those who fail to comply will suffer the consequences,” he warned.
This crackdown is a continuation of Magufuli’s strong stance on tax collection. The government projection is to collect a staggering 12.3tn/- in sales taxes 2015/2016 for the financial year.

To meet this target, the tax agency is working closely with anti-corruption agencies as part of the wider initiative to boost domestic revenues and support long-term economic growth.

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