IN a bid to enhance tax compliance including the culture of demanding receipts on purchase of goods, the Tanzania Revenue Authority (TRA) plans to introduce prizes.

TRA’s Principal Taxpayer Service Officer, Ms Rose Mahendeka, said at a seminar on new tax laws to Tanzania Tax Writers Network (TAWNET) organised by Vodacom in Dar e Salaam that the culture of asking for receipts after buying various goods will check revenue loss. She said the practice will not only boost revenue collection but curb leakages used by some traders in dodging tax.
“To participate in the draw, buyers will have to send special numbers on the receipts and win various prizes which will be announced when it begins,” she said. The government collects over 800bn/- monthly, but the current efforts will boost further the collections.
She said many buyers do not know the importance of receipts for the goods they purchase, saying receipts help keep good records of the financial transaction during auditing. TRA principal tax payers’ education officer Mr Hamis Lupenja said the new Value Added Tax (VAT) law will provide and expand tax collection scope.
He said, for example, more areas are included in the tax base and are taxed like insurance industry with the exception of health insurance when compared to the old law that left them aside.
Some of the weaknesses of the old VAT law were the powers given to the minister to provide tax exemptions that at most time was misused leading to decreased revenue collection.
Also the introduction of electronic system has simplified and boosted efficiency in collection of tax payments. Further improvement in technology use is set to boost further collections as more traders acquire and use the Electronic Fiscal Devices (EFD).
Source: Daily News

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