Tanzania government agrees to address striking traders' grievances

DAR ES SALAAM, Tanzania

The government of Tanzania has aligned eight bold measures to bring normalcy at the famous Kariakoo business hub in Dar es Salaam commercial city, including formation of a 14-man special committee which will probe and draw solutions to tackle traders’ grievances.

Kariakoo hosts an extensive market, which is a major contribution to Dar es Salaam's economy. Also, foreign and local Tanzania traders dependent on the old market for the purchase of retail and wholesale products, which include agricultural, veterinary, and medicine, among others.

The traders closed theirs shops since Monday this week demanding to meet the president in order to iron out their grievances against the Taxman, Tanzania Revenue Authority and the Dar es Salaam City Council for imposing a burden of taxes and levies that their business cannot sustain and the imposition of the storage law.

The Business community called for the government through the ministry of Finance and Planning to table an emergency document to the National Assembly, to amend the warehouse registration law, so that it can be repealed along with other contradictory laws that made loopholes for TRA officials to solicit bribes.

They made a strong stand against corruption within the Tanzania Revenue Authority.

In addition, they said the TRA tax system at the Dar es Salaam port should be abolished because it is not compatible with the existing system in the market and it is at the heart of the crisis for traders.

In response, the country’s Prime Minister Kassim Majaliwa who had five-hours meeting with the traders at Mnazi Mmoja grounds in Dar es Salaam, announced a ban of taxes imposed by the Tanzania Revenue Authority (TRA) on traders for storing goods in warehouses.

Prime Minister Kassim Majaliwa

He stressed that the facility owners are the ones who should make the payments because they are charging for the service.

“If the storage charges at the Ministry of Investment, Industry and Trade have not welcomed any grievances …why TRA? it implies that there is a loophole somewhere.” Majaliwa said, noting that the problem was not about the law but the guidelines.

“The government’s intention is to see you carry out your business effectively…the government wants to see all traders benefitting from their activities.

“We are also aware that some of you possess loans including bad debts. Your families as well depend on the businesses for their upkeep. You need to expand your business, short of that another day of strike reduces your productivity.” He said.

The Premier also maintained that his directive of suspending the tax collection taskforce was there to stay, ordered immediate release of seized cargo and warn police from conducting receipt inspections.

“The role of the police is to protect people and property and not to conduct inspection of receipts unless they have a warrant to carry out a specific search.” stressed the Premier.

The Prime Minister also formed a 14-man committee to probe and draw solutions to tackle traders’ grievances; with seven members from the government and other seven from the business community.

He directed the committee to take charge in the entire matter within two weeks’ time, noting that the recommendations will thoroughly be analyzed by relevant technical teams and presented to the finance minister since the Parliament was currently sitting in Dodoma.

He gave the committee authority to execute the crucial role in other markets that include Kariakoo, Mwenge, Manzese, Tandika, Mbagala, Kigamboni and Zanzibar among other cities such as Mbeya, Arusha, Tanga, Dodoma and regions along borders including Mara, Songwe and Kigoma.

Other measures include, coming up with a good clearing system of containers and review of laws which have loopholes.

The Premier also warned against corruption practices among TRA officials and Police Force, saying the government will never tolerate such malpractice.

He pleaded with the traders to return to their business, stressing that Kariakoo is an international market and should remain active. - Africa