Concern as Tanzanian Traders’ Tax Strike Shuts Shops, Calls for Economic Reform Enters Second Day

By Adonis Byemelwa

In a swift escalation of protest against tax burdens, Mwanza and Mbeya regions in Tanzania have joined Kariakoo traders in a strike, demanding a business-friendly environment amidst cries of excessive levies.

Despite the Minister of Planning and Investment, Prof. Kitila Mkumbo, announcing the suspension of electronic fiscal device (EFD) inspections, traders continue to stand firm in their decision to keep their shops closed.

By 3:30 AM this Tuesday, June 25, 2024, many shops remained shut, with a significant number of traders absent from their premises compared to yesterday.

In Dar es Salaam's Kariakoo area, numerous clothing and various goods shops were closed, leading to dismay among buyers from other regions and abroad.

In Mbeya city, traders at Kabwe and Mwanjelwa markets also closed their shops and suspended services today, June 25, 2024, citing multiple taxes and levies. Mwanjelwa Market's Traders Association Chairman, Charles Syonga, confirmed the strike, emphasizing issues such as taxes and numerous levies.

"We as leaders haven't directed anyone to close their shops. We acknowledge challenges like taxes and various levies, all of which have been communicated to the government. We are waiting for directives from the authorities today," Syonga said.

Recently, complaints about excessive taxes and levies have been increasingly voiced by Mbeya city traders. Earlier, Mwanjelwa Market shop owners had decided to close their businesses before government intervention resolved the issue.

A day after Dar es Salaam's Kariakoo traders went on strike and closed shops, Mwanza traders also shut down their shops.

Chairman of the Mwanza Regional Traders Association, Patrick Masagati, outlined the reasons for their strike. Speaking to reporters on Tuesday, June 25, 2024, Masagati attributed the strike to opposition against tax laws contributing to exploitation and hindering business progress.

"The driving force behind traders suspending their businesses is the ongoing issues related to tax laws. Tax laws have become problematic," Masagati stated.

When asked about the duration of the strike, Masagati declined to specify when it would end, stating that the decision to end the strike rested with the traders themselves after presenting their grievances to the government.

"Following the submission of our challenges to the government, we await further actions while hoping that today's National Budget presentation by the Finance Minister will address our concerns," Masagati added.

The decision by traders to close their shops has adversely affected small-scale traders ('Machinga') and product vendors from neighboring regions and beyond, who travel long distances to purchase goods in Mwanza only to find closed doors.

Stephen Kitwe, a 'Machinga' trader from Misungwi District, Mwanza Region, expressed his frustration over the strike's impact. "I didn't expect to encounter a strike today. It has greatly affected me. I've been wandering since noon trying to find an open shop but now, I'm heading back home," Timba said.

The resident of Nyasaka, Anna Nyemo, expressed concern about repaying her business startup loan, as she was unable to find goods to sell in her area. "Today has severely affected us, small traders. We have loans to repay, children in school, and the new school term approaching. Big shops where we buy goods to resell are closed. We urge the government to address this issue," Maria pleaded.

Ekerege Mugoa from Chato District, Geita Region, expressed surprise and dismay at traveling a long distance to encounter the strike in Mwanza.

As of 5:50 AM, there were no signs of traders reopening their shops, underscoring the persistence of the strike as efforts continue to secure a government response.

The ongoing strike has deeply impacted traders and the economy at large. Small-scale vendors, known locally as 'Machinga', who depend on daily sales to sustain their livelihoods, find themselves unable to operate or procure goods. This disruption not only affects their immediate income but also jeopardizes their ability to repay loans and support their families. Furthermore, the closure of shops in major markets like Kariakoo, Mbeya, and Mwanza disrupts supply chains, affecting businesses beyond the immediate vicinity and contributing to economic instability.

On a broader scale, the strike highlights systemic issues within Tanzania's business environment, particularly concerning tax policies and regulatory burdens that traders perceive as stifling growth. The standoff between traders and the government reflects a broader sentiment of discontent and underscores the need for policy reforms that support entrepreneurship and economic resilience.

Negotiations between traders and government officials continue, leaving the fate of thousands of affected businesses hanging in the balance. Stakeholders anxiously await a resolution that can restore normalcy and ensure sustainable business operations across the affected regions.