TRA in negotiation with agencies over EFDs

PLANS are underway by the government to review the high selling price rates for the Electronic Fiscal Devices (EFDs) which it had introduced to the targeted businesspeople and trading enterprises with higher working capital of between Sh. 14 million and over, The Guardian can authoritatively report. TRA’S Director for Taxpayer Services and Education Richard Kayombo said yesterday in Dar es Salaam that, the move is to make affordable price rates for such devices to quench the thirst of those who complained of their high costs. He said in an exclusive interview that, the government is doing negotiations with 11 companies which it had offered a legal tender to distribute the devices countrywide with a view to reduce their price costs. He named the agencies as Advatech Office Supplies Limited, Bolsto Solutions Limited, Business Machines Tanzania Limited, Checknocrats Tanzania Limited, Compulynx Tanzania Limited, Maxcom Africa Limited. Other companies Pergamon Group Limited, Power computers Telecommunication Limited, Soft Net Technologies Limited, Total Fiscal Solutions Limited, Web Technologies Tanzania Limited. He said the move is to minimize the arising chaos and complaints following the misunderstanding which rose among users when the devices were introduced for use in early November this year. He said that, a team of technical experts from TRA would meet with the distributing agencies  to discuss the cost of components so as to review the current price cost of Sh. 900,000 and make them saleable at least between Sh. 600,000 and Sh. 690,000 respectively. He said once the price rates are attained, still buyers of these machines would buy them by installments on agreed terms of payments therein, or they might acquire loan facilities from the financial institutions to settle down their payments. Meanwhile the government has reiterated its need to continue educating the basic use of these devices by highlighting their importance to the general public from village level to regional level through district councils. Kayombo noted that, the government does the work through seminars which currently is being conducted in various parts in the country, adding that, it is a continuous program through block management system which is being supported by the government targeting mostly to various community groups. When asked what actions they would take against people or enterprises which would defy the order of using the devices, he said that, there will be a series of warning three times and two reminders to be given within 14 days time. After that, he continued and noted that stern measures would be taken according to the law whereby the culprits would be charged 5 percent of the total amount of their collections for the first time.  On the second warning of defiance, a penalty of 10 percent would be imposed to defaulters and for the third time, serious penalties would be imposed including a fine of between Sh. 1 million and 3 million. This would be reinforced as per the Cap 104 of the subsection 2 of the TRA Act of revenue collection. In early November this year, business came to a standstill at Dar es Salaam’s Kariakoo main shopping market for both retrial and whole sale commodities as traders closed their stores protesting the use of Electronic Fiscal Devices (EFDs). Other up-country business people threatened to boycott trading to join their fellows who were protesting the price rates of the introduced devices brought to them by the government to buy that would regulate their financial accounting systems as such devices are designed to evaluate the amount of money for tax collections. Traders complained over the use which they said have adverse impacts on their businesses.