Finance Act 2011 : Kaeni chonjo wajasiriamali

Ntemi Kazwile

JF-Expert Member
May 14, 2010
2,182
307
Saturday, 24 December 2011 22:26

Saumu Jumanne
CROSSROADS
saumu.j@gmail.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it
How many people know that the Finance Act 2011 requires every business to apply for a new annual license comes 1st January 2012?
I can bet, very few business people are aware. Many will be caught off guard. Then there will be big shouts of the return of nuisance taxes scrapped some years ago. If all goes well, the local government authorities will start knocking on every business premises to have a look at the business licence, and if you will not have it, then you will be operating illegally. Before the Finance Act 2011 came into being, entities were paying for a business licence only once in a lifetime.
The new act empowers the local government authorities to enact bylaws to charge and collect business licence fee annually.

The government by now should have massively informed the business community about this new requirement. It should have used paid advertisements in newspapers, TV and radios to inform the public. After all, it expects to collect billions from the exercise. In fact, the least the ministries in charge of Finance, Trade, and Local governments could have done is to post information in their websites about the issue or to just call a press conference. Unfortunately, media reports indicate that the whole government machinery has been silent about the issue leaving business association leaders confused about what will happen. It was the Finance minister’s budget last June that proposed new licensing fee for all businesses (except hard drinks) as follows - town areas Sh 50,000, District Councils – Sh30,000 and Village Councils – Sh10,000.

Unfortunately, The Finance Act 2011, does not state the amounts to be charged as indicated by the budget. What happens now is that businesses will be at the merciy of local authorities that will decide what to charge.
This is likely to bring chaos in the whole exercise, as traders may refuse to pay any charges above the figures proposed in 2011/12 National Budget.
Unconfirmed reports have it in Dar es Salaam that some municipalities are ready to make it big time taking advantage of the loophole. For example, don’t be surprised if you have a small secretarial bureau somewhere in Kinondoni, the local authorities may charge about Sh100, 000. For big businesses, they can expect to cough more.
This exercise must be implemented carefully so as not to open the door for corruption. Small traders who may not afford to pay the required fee will just be bribing their way out of the mess. If to get a business licence one will have to get a tax clearance certificate from Tanzania Revenue Authority (TRA), then many businesses will be in trouble. TRA often requires one to pay tax in advance before you can get the vital certificate.

I would like to add my voice to those calling for the ministry of Finance and Economic Affairs, ministry of Industry, Trade and Marketing, and ministry of Regional Administration and Local Government Authorities to issue a statement on how the exercise will be conducted and assure the business community that it will not adversely affect the business environment.

Anything that destroys business environment should be done away with as you don’t kill the goose that lays the golden egg. On 13 September, 2011, The Citizen newspaper reported that Tanzania has dropped six places in 2011 Global Competitiveness rankings, taking 119th spot among the 142 countries surveyed in Global Competitiveness Report (GCR) by the World Economic Forum.
How well or badly the new licence regime is implemented will determine whether we will be at the top or bottom of business environment reports by the close of 2012.
Saumu Jumanne is an Assistant Lecturer, Dar es Salaam University College of Education (DUCE)​
 
Kuonyesha uzalendo wetu na mapambano yetu ya kudai TZ bora ni pamoja na kuwa tayari kulipa kodi. Hakuna taifa linastawi bila watu kulipa kodi.
Tuendelee kudai serikali nayo iwe wazi ili tujue vizuri wajibu wetu na haki zetu pia. Kila mtu ni vizuri kulipa kodi ili tuweze kunyosha vidole vizuri kwa serilkali na kudai matumizi bora ya hizo kodi zetu.

Kupiga kelele ya ufisadi wakati wewe siku zote unakwepa kodi ni ufisadi mkubwa pia!
 
Kuonyesha uzalendo wetu na mapambano yetu ya kudai TZ bora ni pamoja na kuwa tayari kulipa kodi. Hakuna taifa linastawi bila watu kulipa kodi.
Tuendelee kudai serikali nayo iwe wazi ili tujue vizuri wajibu wetu na haki zetu pia. Kila mtu ni vizuri kulipa kodi ili tuweze kunyosha vidole vizuri kwa serilkali na kudai matumizi bora ya hizo kodi zetu.

Kupiga kelele ya ufisadi wakati wewe siku zote unakwepa kodi ni ufisadi mkubwa pia!
U got it bad

hiyo sheria inatoa mwanya kwa halmashauri kujipangia in short inaondoa pia standardizaton.. Huo ni mwanya wa rushwa mkuu

ni bora wangeweka ratez kutokana na levels za wilaya, na kingine kikkubwa ni publi awareness.

Kuhusu kodi... Kodi nyingi huwa haikwepwi hapo bali kule juu zaidi kwenye mega scale
 
Wanabodi tatizo hapa si kulipa KODI kwani hiyo bado tanalipa na tutaendelea kuilipa huko TRA. Bado kuna ushuru tunalipia kwenye serikali za mitaa, na bado kodi ya mwenenyumba ambayo kwa mujibu wa TRA tunatakiwa tuwithhold 20% ya hiyo hela (capital gains tax). Tatizo hapa ni hii sheria inayotutaka tuwe tunaomba leseni kila mwaka na kuilipia, bila kuangalia urasimu tunaokutana nao na gharama tunazogharamia kuset up a business premise.

Kwa kusema ukweli huu mkakati mbaya sana wa serikali yetu hasa ukizingatia kuwa mazingira ya kibiashara bado hayajawa rafiki sana kwa wajarisiamali. Ngoja nitoe mfano mmoja, kwa kuwa serikali za mitaa zimeshindwa kabisa kutenga maeneo ya viwanda vidogo vidogo na kuyaendeleza, inatubidi kugharamia kila kitu (hata baadhi ya vile tulivyopaswa kuvipata kama public goods). Sasa ukitaka kwenda kuanzisha agro-processing plant let say Iringa, utapewa eneo ambapo hata umeme hakuna, na ukipiga hesabu ya nguzo za umeme zinazotakiwa utakuta mtaji wote unaishia kwenye uvutaji wa umeme. Hili ni jukumu a serikali za mitaa!. Na ni moja kati mambo yanayokatisha tamaa vijana kujiajiri, lakini mbona kwenye EPZ wanafanya haya?!! Au kwa kuwa wengi ni wawekezaji wa NJE?!

Kwa kuzingatia mambo haya na mengine mengi ambayo siwezi kuyataja hapa serikali ya awamu ya tatu iliamua kufuta sheria hii ili kuchochea ari ya watu kujiajiri. Sasa sababu zilizofanya serikali ya awamu ya tatu ichukue hatua hizo bado zipo leo hii, lakini serikali hii, tena iliyotoa ahadi ya kuzalisha ajira milioni moja kila mwaka (ikashindwa!) imeamua kuirudisha. Mimi ninadhani ni wakati muafaka wa serikali yetu kuweka mazingira rafiki kwa wawekezaji wa ndani ili kupromote self employment na ajira kwa watu wengine.

Kimsingi mchango wa sekta binafsi, hasa kundi hili linaloitwa SMEs katika uchumi wa Taifa ni mkubwa kuliko inavyofikiriwa, hasa ukichukulia kwa mapana yake, mimi nadhani utaratibu huu utaturudisha nyuma kama Taifa na hivyo unastahili kuupingwa na wanaharakati wote wa haki za kiuchumi, wajasiriamali na wapenda maendeleo kwani bila kufanya hivyo tutakuwa tunadiffuse lile bomu linalozungumzwa kila siku.

Hebu tujiulize, kama leseni ilikuwa inatolewa bure na bado wajasiriamali wengi walishindwa kuishughulikia kutokana na urasimu, je ikianza kutolewa kwa ada itakuwaje?
 
In the budget speech the Finance Minister had promised charges for business license would be sh 10,000 (villages) 30,000 (district councils) and 50 000 in townships. The problem is the finance act does not indicate this amount. Business people are willing to pay it. It leaves the village, district, and town councils to decide. Just wait until Ilala and Kinondoni makes public their fee.. a secretarial bureau will be paying 100,000. Wacha tu
 
Saturday, 24 December 2011 22:26
Saumu Jumanne
CROSSROADS
saumu.j@gmail.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it
How many people know that the Finance Act 2011 requires every business to apply for a new annual license comes 1st January 2012?
I can bet, very few business people are aware. Many will be caught off guard. Then there will be big shouts of the return of nuisance taxes scrapped some years ago. If all goes well, the local government authorities will start knocking on every business premises to have a look at the business licence, and if you will not have it, then you will be operating illegally. Before the Finance Act 2011 came into being, entities were paying for a business licence only once in a lifetime.
The new act empowers the local government authorities to enact bylaws to charge and collect business licence fee annually.

The government by now should have massively informed the business community about this new requirement. It should have used paid advertisements in newspapers, TV and radios to inform the public. After all, it expects to collect billions from the exercise. In fact, the least the ministries in charge of Finance, Trade, and Local governments could have done is to post information in their websites about the issue or to just call a press conference. Unfortunately, media reports indicate that the whole government machinery has been silent about the issue leaving business association leaders confused about what will happen. It was the Finance minister's budget last June that proposed new licensing fee for all businesses (except hard drinks) as follows - town areas Sh 50,000, District Councils – Sh30,000 and Village Councils – Sh10,000.

Unfortunately, The Finance Act 2011, does not state the amounts to be charged as indicated by the budget. What happens now is that businesses will be at the merciy of local authorities that will decide what to charge.
This is likely to bring chaos in the whole exercise, as traders may refuse to pay any charges above the figures proposed in 2011/12 National Budget.
Unconfirmed reports have it in Dar es Salaam that some municipalities are ready to make it big time taking advantage of the loophole. For example, don't be surprised if you have a small secretarial bureau somewhere in Kinondoni, the local authorities may charge about Sh100, 000. For big businesses, they can expect to cough more.
This exercise must be implemented carefully so as not to open the door for corruption. Small traders who may not afford to pay the required fee will just be bribing their way out of the mess. If to get a business licence one will have to get a tax clearance certificate from Tanzania Revenue Authority (TRA), then many businesses will be in trouble. TRA often requires one to pay tax in advance before you can get the vital certificate.

I would like to add my voice to those calling for the ministry of Finance and Economic Affairs, ministry of Industry, Trade and Marketing, and ministry of Regional Administration and Local Government Authorities to issue a statement on how the exercise will be conducted and assure the business community that it will not adversely affect the business environment.

Anything that destroys business environment should be done away with as you don't kill the goose that lays the golden egg. On 13 September, 2011, The Citizen newspaper reported that Tanzania has dropped six places in 2011 Global Competitiveness rankings, taking 119th spot among the 142 countries surveyed in Global Competitiveness Report (GCR) by the World Economic Forum.
How well or badly the new licence regime is implemented will determine whether we will be at the top or bottom of business environment reports by the close of 2012.
Saumu Jumanne is an Assistant Lecturer, Dar es Salaam University College of Education (DUCE)​

Well, the new act's pros and cons may be debatable but the fact that the public should be thoroughly informed- especially about the annual license fees- is not. I, personally, am more concerned with the red parts. Saumu, try avoiding "unconfirmed reports" and references from newspaper articles. When you write something this sensitive, make sure you don't leave rooms for doubts. Thanks for putting this in the open.
 
Hili ni jambo la kawaida katika serikali mbalimbali duniani. Hii ni pamoja na registration za magari kufanyika kila mwaka na leseni za biashara, ni njia moja wapo ya serikali kujihakikishia mapato ya kila mwaka kutokana na revenue. Asiyeelewa atekeleze tu wajibu wa kulipa na ataelewa taratibu wakati shughuli zainaendelea. Hayo ndiyo tuliyokuwa tunasema serikali haiko makini katika ukusanyaji wa kodi. Huduma za serikali kuwa bora zitaboreshwa kuktokana na kodi za wananchi na wafanya biashara.
 
Tatizo hapa sio ulipaji wa kodi. Hilo ni jukumu la kila mtu. Seriklali inawajibika kutaarifu, katika muda muafaka, mabadiliko au nyongeza katika taratibu zilizopo. Kukaa kimya na kutoweka viwango ni sawa na kuwa-ambush wajasiriamali
 
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