Buying product without demanding a receipt is an offence-Tax Man  

TANZANIA Revenue Authority (TRA) Director for Tax Payer Services and Education, Mr Richard Kayombo has said that a buyer who does not ask for a receipt or colludes in preparing a receipt with a lesser amount shall be fined 30,000 / – to 1.5m/-, depending on the value of the goods purchased

Kayombo pointed out that TRA has been forced to impose fines on buyers in an effort to instil a culture of remanding a receipt every time one buys goods since that is his/ her right and will equally help the government to collect proper taxes from the traders.

He has called on the public to ensure they demand receipts for every product purchased in an attempt to address tax evasion loopholes in the market.

Taking the stance here during a visit to identify traders in the region, and exchange ideas with a view to expanding the scope of revenue collection and hearing their grievances on tax payment, he further said: “It has been the practice of some traders to evade paying taxes on various goods they sell; either by deliberately refraining from issuing receipts or issuing receipts stating less price instead of real ones sold.

That is an offence… if found, he/ she is liable to a fine of 3m/- to 4m/- or be arraigned in court if he/she persists disobeying,” said Kayombo.

“Basically, a trader who does not issue a receipt or who issues a receipt for less amount or a buyer who does not ask for a receipt, all deserve punishment for participating in stealing revenue from the Government,” he said, emphasizing the need for every trader paying tax saying with a lot of collected revenue the government will be able to implement its various development projects.

Singida Traders Chairman, Mr Florian Mallya said there was a need for TRA to expand its revenue collection scope by including all traders in the country, adding that doing so the government would enable the State to collect more revenue and be able to implement its various projects.

“Nowadays there are so many business people in rural and even urban areas but I am not sure if, at all, they are reached by the Authority,” said Mallya.

The Chairman further advised the Authority to start charging 18 percent VAT on every trader in the country instead of clinging to only those with high sales noting that some petty traders dubbed ‘wamachinga’ get higher incomes than some licenced shops.