PUBLISHED ON July 25th, 2014


The Tanzania Revenue Authority (TRA) has began to train small and medium entrepreneurs involved in cross-border trade on what products they should pay duty so they could benefit from what they trade in the East Africa Community.

This was revealed on Friday by the TRA’s Principal Taxpayer Service Officer, Rose Mahendeka, at the training of women entrepreneurs organised by TRA and Tanzania Women Chamber of Commerce (TWCC) in Dar es Salaam.

“We decided to introduce the programme after identifying that majority of women entrepreneurs, especially in rural areas and from the border points don’t understand what kind of products they have to pay duty for,” she said.

This is a new programme designed by TRA to help entrepreneurs across the country to pay duty in accordance with the businesses they conduct to stave off long time complaints on duty payment on cross border goods.

Elaborating on the standards that TRA charges on imports and exports, especially in the EAC region, she said the import duty is zero for any entrepreneur willing to import goods from within the region.

They include all capital goods such as irrigation equipment, machines and other machines or tools that can be used in the production of other goods across the country including the raw materials.

Apart from that import duty charged on agricultural tractors from the East African region is zero, but the businessperson will be required to pay handling charges for the agricultural tools.

On the other hand, the import duty charged on semi-processed products from within region is 10 percent, while semi-finished goods are levied 10 percent. On the other hand import duty and all final consumable goods are charged 25 percent import duty.

According to her, TRA charges Value Added Tax (VAT) according to the value of the products the importer has.

“As women entrepreneurs engaged in business you need to be familiar with this issue so that you can benefit from what you import from the region, while on the other hand, tax should be paid according to the business you have or you are engaged in,” she noted.

Elaborating on who should pay taxes, she said, if the turnover of a business one runs did not reach 4m/- per year, there was no need to pay tax.
And if the turnover of the business one runs range from 4m/- and 7.5m/- per year, the tax one would pay is 10,000/-per year.

And if the turnover of the business one operates ranged between 7.5m/- and 11.5m/-, then the tax payment would be 212,000 per year.

“Then from 11.5m/- to 16m/- one is supposed to pay a tax of 364,000/- per year,” she said, noting that from 16m/- to 20m/- a business should pay 575,000/- in tax per year.

Valued Added Tax is normally registered for businesses whose turnover is 40m/-.
Besides business with a turnover of above 14m/- are required to use the Electronic Fiscal Devices (EFDs) when paying tax.

Source: IPP Media

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