Zanzibar Cracks Down on Tax Evasion: Businesses Warned of Strict Enforcement
In a bold move to combat tax fraud, Zanzibar’s Finance Ministry has launched a comprehensive crackdown on businesses failing to issue electronic receipts and display product prices. The operation, conducted in the Mlandege area, revealed systematic attempts by local businesses to evade tax obligations.
Government officials warned that businesses refusing to issue electronic receipts could face fines up to 2 million Tanzanian shillings, while customers not demanding receipts may be penalized 30,000 shillings per item. The initiative aims to ensure transparent business practices and maximize government tax collection.
Key findings from the inspection include:
– Widespread non-compliance with tax receipt regulations
– Potential price manipulation affecting consumer rights
– Deliberate attempts to conceal financial transactions
Authorities emphasized that failing to issue receipts creates significant opportunities for fraud. Businesses are now required to use electronic receipt systems and clearly display product prices, with strict consequences for non-compliance.
“We continue providing education, but the next step will be enforcing tax laws,” government representatives stated. The campaign signals a strong commitment to improving financial transparency and supporting Zanzibar’s economic development.
Business owners have been urged to cooperate with tax authorities and fulfill their legal responsibilities voluntarily. Those found repeatedly violating regulations may face additional legal actions, including penalties and potential business restrictions.
Consumers are encouraged to demand electronic receipts for all transactions, helping to ensure proper tax collection and maintain fair business practices across Zanzibar.
