Outcry in Zanzibar over tax estimates

Outcry in Zanzibar over tax estimates

 

Unguja. A section of traders in Zanzibar have complained over the decision by the Zanzibar Revenue Board (ZRB) to charge taxes by estimates instead of using the Virtual Fiscal Management System.

According to the businessmen some are turned away by the taxman over claims that the amount they want to pay is less yet the calculations are based on sales records using machines.

However, in a quick rejoinder ZRB’s acting Taxpayer Education manager Makame Mohammed Hamis said they are empowered by the law to conduct audits at any time they deem necessary.

According to him what usually leads to estimated tax for some traders if there is suspicion over the payments that are to be made, especially when they are below the level compared to the previous payments.

“The inspection that takes place is usually done in accordance with the law so that the Board is satisfied with the information of the taxpayer and the business that takes place,” he said.

However, the businessmen claim that the taxman wants them to pay more than what is reflected in the sales report through the Electronic fiscal devices.

“We went there to make payments but ZRB officials refused to receive the payments saying the amount was too low yet this is what was recorded in the fiscal devices,” said Ali Said, a businessman in Mlandege. 

On his part, the businessman Juma Mohammed said that tax estimation is against the government’s goals of establishing a revenue collection system using electronic machines and according to him the procedure was introduced to close the gaps that allowed tax evasion.

“If that was the case then there was no reason to sell us these machines at a cost of Sh400,000 as tax collection continues to take place in the old ways, but it also has serious consequences for the development of the business sector.” said Juma.

Original Media Source

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