BabuK
JF-Expert Member
- Jul 30, 2008
- 1,845
- 329
The Tanzania Revenue Authority (TRA) is planning to install electronic fiscal devices (EFDs) in all upcountry buses to enhance revenue collection.
The move is also meant to put an end to overcharging of unsuspecting travelers.
This follows the continued refusal by bus owners to issue receipts and keep proper records which affects TRAs revenue collection efforts.
TRA Principal Officer Hamisi Lupenja made the announcement yesterday in an interview with The Guardian. He explained that introduction of the plan is aimed at curbing deception among bus owners who charge high fares but pay little tax or none at all.
Lupenja revealed that installation of the devices would help TRA record actual fare per person as well as help passengers pay only the government approved fares.
This is a relief to passengers as the new system will enhance good customer services which still remain a big challenge in the country, he added.
Our intention is to help the bus owners streamline their business after realising that a lot of revenue is lost through ticket printing, said Lupenja, adding that this implies that the owners may be shunning from issuing paper receipts and keeping paper records because of the expenses involved.
According to Lupenja, a pilot study will be conducted in a few buses and the selected buses will be installed with the devices and trained to use them.
Expounding, he said, that they will study the modalities of the gadgets needed to be installed on the buses.
The equipment is reported to be simple and easy to operate, but with capability of recording all transactions and to simultaneously transmit the data to TRA.
The devices generate receipts once a ticket is sold, store the records and send the same information to TRA and so reducing or completely eliminating the cheating tendencies of the bus operators as now they will be undisputable accurate records.
In that same endeavour, at least 200, 000 businesses are also expected to be installed with the EFDs. The exercise will be done after the launch of the second phase next month.
Detailing, the system will be implemented to those businessmen who are not registered with VAT but have sales exceeding 14m/- per year.
The aim of including both VAT registered and unregistered businesses, is for comparative analysis as it helps calculate tax ratio , he detailed.
According to Lupenja, statistics have shown that many businessmen are confident in the system, acknowledging that it has helped them to estimate, keep proper records, increase profit and avoid in-house theft.
He revealed that since the establishment of EFDs, tax collection has increased to 23 percent in the year 2011/2012 compared to 9.6 percent in 2010/2011.
Businessmen have been warned harshly against tempering with the devices and that should they attempt, they should know that the devices automated security system sends a signal to TRAs servers.
TRA introduced the EFDs back in July 2010 to increase efficiency of tax collection aiming to raise it to the highs of 40 and 50 percent annually.
They got much more than they bargained for as only one year later, December 2011, collections surpassed the target by 40bn/- to reach 682bn/-.
SOURCE: THE GUARDIAN
The move is also meant to put an end to overcharging of unsuspecting travelers.
This follows the continued refusal by bus owners to issue receipts and keep proper records which affects TRAs revenue collection efforts.
TRA Principal Officer Hamisi Lupenja made the announcement yesterday in an interview with The Guardian. He explained that introduction of the plan is aimed at curbing deception among bus owners who charge high fares but pay little tax or none at all.
Lupenja revealed that installation of the devices would help TRA record actual fare per person as well as help passengers pay only the government approved fares.
This is a relief to passengers as the new system will enhance good customer services which still remain a big challenge in the country, he added.
Our intention is to help the bus owners streamline their business after realising that a lot of revenue is lost through ticket printing, said Lupenja, adding that this implies that the owners may be shunning from issuing paper receipts and keeping paper records because of the expenses involved.
According to Lupenja, a pilot study will be conducted in a few buses and the selected buses will be installed with the devices and trained to use them.
Expounding, he said, that they will study the modalities of the gadgets needed to be installed on the buses.
The equipment is reported to be simple and easy to operate, but with capability of recording all transactions and to simultaneously transmit the data to TRA.
The devices generate receipts once a ticket is sold, store the records and send the same information to TRA and so reducing or completely eliminating the cheating tendencies of the bus operators as now they will be undisputable accurate records.
In that same endeavour, at least 200, 000 businesses are also expected to be installed with the EFDs. The exercise will be done after the launch of the second phase next month.
Detailing, the system will be implemented to those businessmen who are not registered with VAT but have sales exceeding 14m/- per year.
The aim of including both VAT registered and unregistered businesses, is for comparative analysis as it helps calculate tax ratio , he detailed.
According to Lupenja, statistics have shown that many businessmen are confident in the system, acknowledging that it has helped them to estimate, keep proper records, increase profit and avoid in-house theft.
He revealed that since the establishment of EFDs, tax collection has increased to 23 percent in the year 2011/2012 compared to 9.6 percent in 2010/2011.
Businessmen have been warned harshly against tempering with the devices and that should they attempt, they should know that the devices automated security system sends a signal to TRAs servers.
TRA introduced the EFDs back in July 2010 to increase efficiency of tax collection aiming to raise it to the highs of 40 and 50 percent annually.
They got much more than they bargained for as only one year later, December 2011, collections surpassed the target by 40bn/- to reach 682bn/-.
SOURCE: THE GUARDIAN