Tanzania Pushes Electronic Cash Registers to Boost Tax Collections

April 29, 2014 Taxation in Tanzania

DAR ES SALAAM – The government of Tanzania is urging retailers to make use of standardized cash registers to help ensure that their businesses are not neglecting their VAT obligations.

Over the weekend the President of Tanzania Jakaya Kikwete issued a statement confirming that the Tanzania Revenue Authority will resume a nationwide training program Electronic Fiscal Devices (EFD) by retailers.

The EFD devices were first introduced in Tanzania in 2010 in order to ensure that all businesses fully record and report their sales, making it harder for retailers to hide and neglect full VAT obligations .

The nationwide training program is aimed at not only at encouraging more businesses to adopt the use of the machines to help keeping track of sales and taxes owing, but also at highlighting the operational benefits of using a standardized electronic system for inventory management.

The President acknowledged that a significant portion of the critiques against the mandatory use of EFDs is the initial price faced by businesses purchasing the machines, however, he pointed out that some retailers will recover the costs through concentrated tax incentives currently being offered.

Underlining the need to implement a nationwide electronic sales register system, the President said that “…we cannot retreat on this… doing so is the same as going backwards,” as “…we need this system for efficient collection of tax.”

Photo by: Kenny Louie