Tanzania’s Samia replaces TRA chief amid diplomats, traders tax complaints

By BOB KARASHANI

Speculation is rising over the abrupt removal of Tanzania Revenue Authority (TRA) Commissioner General Alphayo Kidata earlier this week against a backdrop of discontent among foreign investors and domestic traders over questionable taxation practices.

President Samia Suluhu Hassan on Tuesday named Zanzibar revenue chief Yusuph Juma Mwenda as the new TRA boss in place of Mr Kidata who had held the position since April 2021, moving him to an unspecified advisory role in State House.

Mr Kidata was in his second stint as the head taxman and his latest transfer came as the government prepared for discussions with members of the diplomatic corps to address a raft of complaints they raised last week about allegedly unfair taxation of foreign direct investments (FDIs) in Tanzania.

Although there has been an argument that the 60-year-old Kidata (born December 28, 1963) was already past public service retirement age, the timing of the move also coincided with a second strike within a year by local market traders protesting long-running harassment by TRA officials and agents.

Curiosity was further piqued by State House Chief Secretary Moses Kusiluka’s announcement, in the same July 2 brief, of a replacement for Industries and Trade Minister Ashatu Kijaji who was part of the government team involved in protracted talks with the traders last week.

Dr Kijaji moved to the Vice President’s Office as Minister of State responsible for Union and environmental affairs, exchanging portfolios with Selemani Jafo. No reasons were given for any of the new appointments.

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Earlier on June 26, Tanzania-based ambassadors and high commissioners from 10 countries lodged a formal request to Foreign Affairs Minister January Makamba for a meeting to address “recent and ongoing challenges” faced by foreign investors in relation to TRA tax administration.

The envoys who signed the request letter, a copy of which was obtained by The EastAfrican, were from the United States, Canada, Britain, Ireland, Germany, France, Belgium, the Netherlands, Sweden and South Korea.

They cited, among other things, “unevidenced” TRA notices demanding payments and account reconciliations dating back up to 15 years, extraordinary tax bills not supported by law, and TRA’s rejection of tax concession agreements with the Tanzania Investment Centre (TIC)- another state agency – on the grounds that they had not been “gazetted.”

“Investors also report that TRA agents threaten investors and Tanzanian partners when companies protest or appeal these practices, and freeze or seize bank accounts and company assets without notification nor timely legal recourse,” the envoys’ letter stated.

According to them, TIC’s success in raising the value of FDI registrations from $3 million in 2021 to $5.5 million in 2022 had become “undermined” by the trend. They said despite undergoing regular audits by TRA and state-endorsed international audit firms, some investor companies were “now receiving notices with additional demands for tax payment.”

The envoys cited an instance where one unnamed company was issued with a Tsh1.2 billion ($455,400) tax notice requiring it to pay up “within three working days for discrepancies dating back 12 years, under the threat of having its operational accounts frozen and funds withdrawn.”

Mr Makamba responded through official correspondence the following day (June 27), pledging to convene a roundtable of the envoys, relevant government officials and representatives of aggrieved investors to address the concerns head-on, although he did not immediately specify a date.

He said for the meeting to be productive, the investors being referred to should prepare a compendium or presentation detailing their grievances, adding that “the sooner this report is presented to us, the sooner we will be able to schedule the requested meeting.”

The minister asserted that Tanzania was committed to protecting and ensuring the “ironclad” success of all FDIs and the government would “take very seriously any alleged transgression, by any public entity, that endangers the country’s reputation as an investor-friendly destination.”

Strike pic

Traders chat outside their closed shops in Kariakoo Market, Dar es Salaam during a strike over taxes on June 25, 2024. PHOTO | THE CITIZEN | NMG

Last week’s strike by traders in Dar es Salaam and other urban markets revolved around long-standing demands for a more transparent tax system in the face of constant badgering by TRA compliance inspectors.

The traders’ concerns had remained unresolved since a previous strike at the major Kariakoo market in Dar es Salaam in May last year. This time around, the government managed to cool things down with tentative promises of quick solutions in a series of talks with traders’ representatives in the administrative capital Dodoma.

Read: In Tanzania, traders strike over harassment

As part of the solutions package, TRA was instructed to set up a more efficient system involving proper documentation of receipts and invoices for traders to be assessed more accurately on what they owe in taxes at any given time and have the system operational by July 1.

Key government officials involved in the talks included Prime Minister Kassim Majaliwa, Finance Minister Mwigulu Nchemba, Minister of State in the President’s Office for Planning and Investment Prof Kitila Mkumbo, and Dr Kijaji while still holding the industries and trade docket.

On their part, the foreign envoys have requested the attendance of the same cabinet ministers along with Mr Makamba and the TRA commissioner general at their own upcoming meeting.

Mr Kidata has a somewhat chequered history in the civil service, especially during the tenure of ex-president John Magufuli when he experienced several ups and downs and much shifting around.

He was TRA boss under Magufuli from January 2016 to March 2017 before being appointed permanent secretary in the Ministry of Regional Administration and Local Governments at State House. Shortly afterwards he was sent to Canada as Tanzania’s envoy, only to be recalled within 10 months, in November 2018, and stripped of his ambassadorial status in circumstances that were never made public.

Again a short time later, in September 2019, the late president appeared to have another change of heart and appointed Kidata to the relatively junior position of Mtwara regional administrative secretary. He was serving in that capacity when Samia, having succeeded Magufuli following his demise, reinstated him to the TRA pilot seat in the early weeks of her presidency.

Under his second watch at the revenue agency, Kidata presided over a steady rise in monthly tax collections that have not dipped below Tsh2 billion ($784,300) since August last year, hitting an all-time high of Tsh 3.05 billion ($1.19 million) in December 2023. 

Annual tax revenues went up 30 percent from Tsh18 trillion ($7.05 million) in 2020/21 – the last year of Magufuli’s tenure – to Tsh24 trillion ($9.41 million) by the end of the financial year 2022/23.

In Tanzania’s latest budget, TRA has been given a new collection target of Tsh29.41 trillion ($11.31 billion) for the 2024/25 fiscal year as the country aims to cover more than two-thirds (67.4 percent) of its Tsh49.35 trillion ($18.98 billion) expenditure plan through domestic financing.

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Zanzibar ready for high tourist season, minister says

Dar es Salaam. After a remarkable 2023, Zanzibar’s tourism sector is poised for even greater success, with projections to receive 800,000 international visitors in 2024.

Speaking to The Citizen in an exclusive interview, the Minister for Tourism and Heritage, Mr Mudrick Ramadhan Soraga, shared insights on the island’s preparedness, prospects, and challenges for the upcoming high season.

“Zanzibar is extremely prepared; everything is in place, and we are anticipating breaking last year’s record of 616,000 visitors,” stated Mr Soraga.

“All hotels are fully booked, and we anticipate a 20 percent increase in visitors this year. Additionally, five chartered flights, including the inaugural Jambojet flight from Mombasa to Zanzibar starting July 1, will boost arrivals.”

He highlighted a new weekly chartered flight from Spain via Portugal, carrying 250 passengers, as indicative of the rising demand. Plans are underway to expand with chartered flights from Mozambique and Rwanda, fostering regional connectivity.

Regarding the local arrivals via ferry from the Port of Dar es Salaam, Mr Soraga noted that the current statistics focus on international arrivals, with preliminary figures indicating 1.2 million local arrivals last year, bringing total arrivals to 1.8 million.

“Right now, the tourism statistics that we have capture international arrivals, but we are also going to look into the domestic market as well. We have preliminary records from last year, where we had 1.2 million local arrivals, which means that our numbers together reached 1.8 million. But that is not the official statistics yet because of the various mechanisms that we have to put in place to make sure the numbers are accurate,” he said.

Regarding perceptions of Zanzibar being an expensive destination, Mr Soraga emphasised its versatility in accommodating tourists across all budget levels, from backpackers to luxury travellers.

“I think it is a very subjective assessment because it depends on who you talk to, but the island itself, the way it is set, can accommodate every level of tourist and their spending capacity. For example, we have the so-called backpackers who can stay in very modest accommodation, but we also have very high-end visitors who can spend in five-star facilities.”

He emphasised efforts to position Pemba Island as an exclusive, high-end destination through strategic investments in luxury resorts.

Addressing recent disruptions in the liquor supply chain and how they are critical for tourism, Mr Soraga acknowledged initial challenges but assured stability.

“We’ve stabilised the availability of alcoholic beverages and fostered collaborative relationships with new suppliers,” he reassured.

But even then, fears of counterfeit beverages that enter the island from the mainland loom, with some hotels now forced to revise their drink menus.

He said measures to curb such illicit inflows include stringent quality controls to counter potential influxes of counterfeit products from the mainland.

“I think it is a very genuine point of concern, and it is not surprising that Zanzibar is an island after all, which means there are certain unofficial points of entry that could easily be used to bring in products that have not been vetted for quality and standards,” he said.

He added: “Our job as the government is to make sure that if you are a licensed importer of beverages, you should provide quality products that have gone through the approval process. We have to make sure that we have proper standardisation procedures and people at customs, ZRA, and TRA to make sure the cargo brought in is at the standard that is required.

Mr Soraga highlighted ongoing efforts to diversify Zanzibar’s tourism offerings beyond beaches, including heritage tourism initiatives and adventure sports like kitesurfing and inter-island boat racing. He underscored plans to revive museums and forest reserves to enrich visitor experiences.

Regarding the Zanzibar Tourism Expo, the minister emphasised its dual role in promoting tourism and showcasing investment opportunities: “This expo integrates tourism with investment, inviting global investors to explore our thriving sector.”

He also emphasised the advantages of marketing the northern tourism circuit in tandem with Zanzibar.

“Linking bush and beach experiences is advantageous; tourists often extend their safaris to include Zanzibar,” he noted, highlighting the synergy between mainland Tanzania’s iconic parks and Zanzibar’s pristine beaches.

As Zanzibar anticipates another bustling tourist season, minister Soraga expressed confidence in the island’s ability to capitalise on its natural beauty and cultural heritage, underscoring ongoing efforts to sustainably develop and promote its tourism potential globally.Continue Reading

Northern Corridor states push for shorter Tanzania freights route

By VINCENT OWINO

Countries backing the Northern Corridor—a regional road connectivity project—are seeking to woo Tanzania to allow cargo headed to Burundi, Rwanda, and the Democratic Republic of Congo (DRC) to pass through its borders to shorten transit time and ease costs in a bid to boost the attractiveness of the Mombasa port.

The Northern Corridor, a network of 1,700 km long interconnected highways, starts from the port of Mombasa and serves Kenya, Uganda, Rwanda, Burundi, and Eastern DRC.

A meeting of ministers of transport from the six-member countries of the Northern Corridor last week ordered the secretariat Northern Corridor Transit and Coordination Authority (NCTTCA) to initiate talks with Tanzania over the proposal.

If successful, Northern Corridor trucks that have traditionally had to take the longer route from Mombasa through Uganda to Rwanda, Burundi, and the Democratic Republic of Congo (DRC) will take the shorter way through Tanzania, cutting about 400 kilometres of the travel distance.

Read: Northern Corridor truckers mull shift to Dar over tax

The council of ministers, chaired by Uganda’s Minister of Works and Transport Katumba Wamala, said using the route, which passes through Taveta into Holili in Tanzania, will “not only reduce costs of transit transport but also increase Mombasa Port throughput.”

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The route is currently not being used by transporters because Tanzania, which is also seeking to boost the throughput at the Dar es Salaam port and the Central Corridor, has not geofenced it, preventing its use by cargo trucks destined for other countries.

The East African Community (EAC) customs union requires that trucks ferrying imported commodities be tracked using the Regional Electronic Cargo Tracking System Currently, truckers that opt for the short Taveta-Holili route have to deposit a “bond” for the cargo at the Mombasa port, submit it at the border, wait for its cancellation, then institute another one for Tanzania, a process that normally takes at least three days.

“That is why it is important that the section from Holili be geofenced. There’s a section of about 21 kilometres that has not been geofenced,” said Omae Nyarandi, executive secretary of NCTTCA.

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Tanzania: Why Tanzania Surpassing Literacy Rate Target Matters

MORE civic engagement and access to information have been listed by experts as the benefits that Tanzania is poised to gain as a result surpassing the target of increased literacy

The third National Five-Year Development Plan (FYDP III) 2021/22 – 2025/26, targeted to make 81.6 per cent of the population aged 15 years and above literate. In analysis, the data by the National Bureau of Statistics (NBS) shows that the target has been surpassed as currently 83 per cent of the population is literate.

In a separate interview with the ‘Daily News,’ the analysts noted that surpassing the target of having a majority of population literate will increase community engagement in various issues such as voting as well as access to information.

Commenting on the matter an Expert in education with the Tanzania Education Network (TenMet), Mr Nicodemus Shauri said having 83 per cent literate people is a significant achievement, indicating a high literacy rate.

He said such an increment has several implications for the country’s education and development, particularly economic growth.

“Literate individuals are more likely to participate in civic activities, such as voting, community decisionmaking, and advocacy, which can lead to more informed and active citizenship,” he asserted.

“Literacy enables individuals to access and understand information, which is crucial in making informed decisions about their health, education and personal development,” he added.

He further said despite the achievement attained, still there were areas that required special attention including bridging the gender gap in literacy rates.

“While literacy rate is high, the quality of education may still be a concern,” he said. His view was seconded by a lecturer at the Tanzania Institute of Accountancy (TIA) -Mwanza Campus, Dr Honest Kimario who said the increase of literacy rate in the country implies Tanzania is effectively implementing global Sustainable Development Goal Number 4 which insists on the Quality Education for all.

“I really appreciate the efforts of the Ministry of Education, Science and Technology to ensure the three 3Rs (Reading, Writing and Arithmetic) are under close implementation at the pre-primary and the first two years of primary education,” he pointed out.

Dr Kimario added that the increase of literacy rate to 83 per cent is an outcome of universal free primary education policy of the government which has made it possible for everyone to get education.

“The impact of increased literacy rate is expected to reduce crimes, growth of the economy and generally improve the livelihood of Tanzanians,” he added.

On his part, an educational consultant at HakiElimu, Dr Wilberforce Meena, said although the percentage reached is praiseworthy, more investment for the country’s adult education system is still required.

“To eliminate the existing gap of illiteracy in the country, it is important to increase investment in the adult education system and lifelong learning,” Dr Meena underlined.

In three years of President Samia Suluhu Hassan’s leadership the government has significantly increased investment in education.

Tabling the national budget recently in National Assembly in Dodoma, Minister for Finance Dr Mwigulu Nchemba said the government continued to improve primary and secondary education by enhancing human resource, improving infrastructures and curriculum.

Source: allafrica.com

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Tanzania: Government, Traders Seal Beautiful Deal

DODOMA — THE government yesterday and the leaders of traders’ association held talks that culminated in agreeing to end the strike and resume business.

The government assured traders of conducive and uninterrupted business environment. The move followed a four-day strike whereas shops remained closed with traders demanding a number of issues to be resolved by the government.

The government side led by Prime Minister Kassim Majaliwa was locked in talks with traders’ association leaders since Wednesday in Dodoma.

Chief Government Spokesperson, Mr Thobias Makoba told reporters shortly after the meeting between the government and representatives of traders in Dodoma that the two sides agreed on 15 resolutions and that the strike was called off.

He said the government reiterated its commitment to protect businesses and ensure conducive environment for doing businesses.

He said the government directed the Tanzania Revenue Authority to halt the crackdown of tax defaulters and all exercises related to tax operations until August, this year.

However, traders were directed to continue issuing electronic receipts for any payment made.

He said TRA also was ordered to come up with good and proper purchasing documentation system starting July, this year and follow agreed procedures to avoid disturbing traders.

Mr Makoba added that the government directed the Tanzania Port Authority to allocate more Inland Container Deports (ICDs) to enable smooth release of goods from the port and thus enable deconsolidation system to work as planned.

Moreover, TRA was ordered to educate the public on charges and various imposed levies. He said the public needs to understand changes and reforms on taxes at different levels to simplify collection and payment of taxes.

According to Mr Makoba, the government has pledged to continue allocating areas for petty traders and create good environment for them to operate.

Also, the government will continue with regular review of tax rates to enable traders to do profitable businesses and operate in conducive environments.

TRA, the main actor in the revenue industry, has been directed to finalise the Tanzania Customs Integrated System (TANCIS) module for auto valuation of taxes including VAT returns and tax estimations issue.

Moreover, the Ministry of Finance has been tasked to coordinate the service levy evaluation and come up with the best arrangement to ensure the charges do not affect traders.

Mr Makoba said the government through the Prime Minister’s Office (Labour, Youth, Employment and Persons with Disabilities) will continue enforcing the laws, rules and regulations governing issuance of work permits provided to foreigners who work in the country.

“Stern legal measures will be taken against those who will be found violating the laid down regulations,” said Mr Makoba.

Source: allafrica.com

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Tanzania: Youth Engagement in Agriculture Great Potential

DAR ES SALAAM — TANZANIA has great potential to food self-sufficiency, by producing food locally without importing from abroad if the young population is properly involved in the agricultural sector.

Speaking at the launch of the 2024 AYuTe Africa Tanzania Challenge competition in Dar es Salaam yesterday, the Resident Director of Heifer Project International, Mark Tsoxo said that there are more young people in Tanzania and that today’s agriculture needs manpower and innovative technology and the available resources can greatly transform the agricultural sector.

“It’s not that young people don’t like to participate in agriculture, young people like results more than the means to achieve results, so we need creativity to be able to attract young people to agriculture,” he said.

The AYuTe Tanzania Challenge was officially launched last year by Heifer International in collaboration with Sahara Ventures to help innovative young people in agriculture get opportunities for capital, training and meeting with investors.

He emphasised that modern agriculture requires the use of technology and with the AYuTe campaign, which is an acronym for Agriculture, Youth, Technology, they want young people to help make the agricultural sector vibrant and competitive to also create jobs.

Tsoxo also said that the foundation is at the forefront of environmental protection in its activities and stressed that the purpose of the fund is to eliminate hunger, reduce poverty and protect the environment.

Speaking at the event, the Chief Executive Officer of Sahara Ventures, Jumanne Mtambalike said that while working with the foundation they have been able to help Tanzanian youths, especially those engaging in agricultural activities by using innovative technology to bring their solutions to the market and thus create jobs.

Mtambalike said that more than 65 per cent of the jobs that come from Africa are in the agricultural sector and that the sector has contributed 32 per cent of the GDP in Africa.

“Therefore, in collaboration with the foundation, we believe that the work we are doing is very important work in empowering young people and creating those opportunities,” said Mtambalike.

On his part, the Project Manager of AYuTe Challenge Tanzania, Emmanuel Senzighe, said that the winner of this year’s competition will receive 28m/-, the first runner-up 21m/-, and the second runner-up 14m/-.

The AYuTe Challenge Tanzania competition was officially launched last year by the Minister of Livestock and Fisheries, Abdallah Ulega, who emphasised that technology can be a springboard to attract many young people to participate in agricultural activities such as breeding and fishing.

Minister Ulega encouraged the use of technology in agriculture as it is the beginning of making many young people excited about the sector

Source: allafrica.com

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