No importation of EFDs, officials warn

Because Electronic Fiscal Devices (EFDs) bought in the country are fitted with government specified software, traders will not be allowed to import them directly a move that officials say would undermine the integrity of their use.

The statement was issued by Tanzania Revenue Authority (TRA) Regional Assistant Manager, Ernest Nkangaza over the weekend at a one day workshop for traders in the region in response to a request by the Tarime District Chairman of Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Charles Mbushi.

The latter had pointed out that most traders in the region and elsewhere in the country do not use EFDs because they are simply too expensive and suggested that they be allowed to import the EFDs.

“We think that if traders are allowed to buy the EFDs from other suppliers the number of users will increase,” he had said.

After dismissing the importation of EFDs, the TRA official went on to warn the business community against conducting trade without the appropriate registrations of their businesses. He again warned them of legal action should they fail to secure required licences and Taxpayers Identification Numbers (TIN).

He explained that the use of unofficial routes to ferry goods into the country from neighbouring countries are not only harmful to individual businesses but also endangers public safety and hurts the country’s economy as a whole.

He said the authority will not tolerate unscrupulous traders who use ‘panya routes’ to avoid taxes but in the process create loopholes for market proliferation of fake and substandard goods while also denying the government its due revenue.

The one day workshop was geared at raising traders’ awareness of voluntary tax compliance and the necessity to use modern technology such as the Electronic Fiscal Devices (EFDs) to among other things help them keep accurate records.

Nkangaza underscored the need for every business in the region to acquire and use EFDs reminding them that it is not optional but rather a mandatory law to be adhered to. ''The use of EFDs will help traders better calculate their actual profits and losses over a specified time and that way allow TRA to appropriately tax them,” he explained, pointing out that while Mara Region has a total of 36,000 registered traders, those using EFDs does not exceed 8,000.