Some small traders continue their business as usual in front of closed shops on Kongo Street, Kariakoo, Dar es Salaam, this afternoon, due to the ongoing strike. Photo: Courtesy
Kariakoo Market Standoff: Merchants Strike Despite Commissioner’s Plea, Demand Sweeping Tax Reforms
By Adonis Byemelwa
The bustling Kariakoo market in Dar es Salaam remains tense as merchants continue their strike, undeterred by a 17-minute address from Dar es Salaam Regional Commissioner Albert Chalamila. His efforts to persuade traders to reopen their shops fell short, with many maintaining their stance hours after his departure.
Chalamila arrived at the market at 11:09 AM, convening a meeting with the traders. Despite his assurances, dissatisfaction lingered among the merchants, who accused the Tanzania Revenue Authority (TRA) of oppressive practices.
The Commissioner urged petty traders, known locally as ‘machinga,’ to continue their activities while addressing the shop owners’ complaints. He emphasized that machinga are the future big business owners, a statement that received a mixed reaction from the crowd.
“Governor, you came here to talk to us, the traders, not the machinga. They haven’t gone on strike; we have,” one trader shouted from a balcony, highlighting the frustration.
Chalamila also acknowledged concerns about Chinese small-scale traders in the area, a source of contention among local businesses. He warned that political motives might be fueling the strike, urging traders to focus on their businesses and avoid being misled by political agendas.
“Do business without being deceived. Don’t tarnish Dar es Salaam’s reputation. If you ruin it, there’s nowhere else to go. Protect Dar es Salaam above all,” Chalamila stated, recalling a similar strike last year that prompted a visit from Prime Minister Kassim Majaliwa. He noted that many issues raised then are still being addressed, requiring time to resolve.
He cautioned that prolonged shop closures would lead to financial regret and reiterated his preference for dialogue over coercion.
“I prefer we sit down and understand each other. If you turn business into politics, I won’t listen to you. I’m not a political party leader; I support all traders equally,” he emphasized.
Chalamila reminded traders that previous defiant merchants had eventually left the country when the government intervened. He assured them that the government could maintain order, hinting at the possibility of deploying security forces if necessary.
The Commissioner dismissed the strike as an ineffective solution, advocating for negotiations instead. Regarding the influx of Chinese traders, he called for diplomatic discussions to delineate roles between locals and foreigners.
On tax evasion, he remarked on the high rate and the traders’ habit of threatening strikes whenever the TRA enforces receipt issuance.
Chalamila urged traders to adhere to existing laws and regulations, asserting that coercive demands for immediate change were unrealistic.
He pledged to protect all businesses and, if required, would enforce orders to ensure shops remain closed until resolutions are reached.
“Government is capable of anything. If it sends troops to Congo and Darfur, it can send them to Kariakoo. But would that be business? If you make Sh200 today with Sh100 profit, continue; better conditions tomorrow will yield Sh400. What do you gain by closing?” he queried.
Following his speech, a few traders resumed their activities, but many shops stayed shut. Herbal medicine vendors, claiming to provide essential services akin to hospitals, continued operating, aligning with the broader grievances about taxation.
Martin Mbwana, Chairman of the Kariakoo Traders Association, acknowledged the strike’s motivation, citing deep-seated frustrations with the TRA. Flyers encouraging the strike had circulated, reflecting the traders’ mounting anger.
As the strike at the Kariakoo market continues, traders have issued a series of demands to alleviate their grievances against the Tanzania Revenue Authority (TRA) and other government bodies. The traders, who have shut their shops in protest, are calling for sweeping changes to tax and regulatory policies they deem oppressive.
Traders are demanding the removal of all service and government levies, which they argue are burdensome and stifle business operations. They also want the tax imposed on hotels, which is aired on ITV, to be abolished.
As well, they argue that fines should be proportionate to the value of the business. They cite that a fine for a Sh 60-million- car is Sh30,000, while a Bajaj or bodaboda is fined Sh10,000. They believe shop fines should be similarly scaled down.
The demand for all taxes to be consolidated into a single system is growing, with traders asserting that the current fragmented system is inefficient and unfair.
Traders view the requirement for receipts not as a tax collection measure but as a form of harassment, calling for its elimination.
There are also complaints about TRA’s aggressive tactics in seizing goods, with traders feeling treated like thieves over their merchandise.
They report that their accountants’ calculations are frequently rejected, resulting in inflated and unpayable debts. The continuing problems with withholding tax are highlighted as a major issue for traders.
Traders propose that VAT should only be collected at factories, airports, and ports, rather than on the streets, to simplify the process.
They demand a cap on presumptive tax, starting from Sh35,000 and not exceeding Sh1 million, regardless of the business size. They are calling for the prevention of foreign nationals from engaging in small-scale businesses across the country.
In a bold move, traders are calling for the resignation of the Prime Minister, the Minister of Finance, the Minister of Industry and Trade, and their principal secretaries, accusing them of failing in their duties. Traders are urging the entire country to unite in their cause, believing that collective action will lead to significant success.
The situation at the Kariakoo market remains tense as traders hold firm on these demands. The government’s response to this escalating standoff will be crucial in determining the future of Dar es Salaam’s vital commercial hub.
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