Tanzania government threatens non-EFDs business users

DAYS are numbered for business people who do not use or tamper with Electronic Fiscal Devices (EFDs) in their businesses as Tanzania Revenue Authority (TRA) has vowed to embark on an operation in search of the culprits. “We are going to do a street-to-street and corridor-to-corridor operation to ensure that business people use the EFDs. We will take to task all dishonest traders,” the TRA Commissioner for Domestic Revenue, Mr Elijah Mwandumbya, said. He called on the business people who do not have the EFDs to go and collect them as they are given for free. “These devices will help the government to earn proper income and eventually save lost revenue,” he said. Speaking over the status of distribution of the EFDs, Mr Mwandumbya said they have supplied a total of 5,703 devices to traders whose business turnover range between 14m/- and 100m/-. The authority’s decision to conduct the operation comes barely a week after President John Magufuli revealed that an investigation has established that a businessman, who is in custody, created a fake tax system using the EFDs and printed and sold to traders fake receipts. The tax syndicate alone has denied the government of at least a trillion shillings over the past three years. According to TRA Commissioner General (CG) Alphayo Kidata, the investigation conducted with the Prevention and Combating of Corruption Bureau (PCCB) has established that four companies jointly evaded income tax and value added tax (VAT) amounting to 29bn/- between 2010 and 2014. Mr Kidata said yesterday that the four companies, which are in the hands of the security organs, have been ordered to pay the money after which they would also face legal measures for violating the country’s laws. In line with the operation, the PCCB said recently that it was investigating other 228 companies. There are reports that three prominent businessmen linked to an EFD tampering syndicate have been arrested in Arusha and transferred to Dar es Salaam for further interrogations.