Dodoma, Tanzania – (African Boulevard News) – Traders at Tanzania’s largest market, Kariakoo, have gone on strike over new taxes imposed by the government. The traders closed their shops and gathered to protest the new tax, which they say will cripple their businesses, as well as affect their customers.
“The main reason for our strike is that we are against the new taxes. As a business owner, I am sure this new tax will harm our business but also our customers, that is why we decided to come together,” said one of the traders, who wished to remain anonymous.
The traders are protesting against the Value Added Tax (VAT) on goods sold within the market. The Tanzanian government has imposed a 18 percent VAT on all goods sold, including foodstuff, clothes, and even medicine. The traders, who have been providing affordable goods to the country’s low-income earners, believe that the new tax will make it impossible for them to continue doing so.
“We believe that this tax is not only regressive but also counterproductive. It will end up increasing the prices of goods sold within the market, which will hurt the very people we are trying to serve,” said another trader.
The strike has brought the market to a standstill, with traders refusing to open their shops until the government reverses the decision. The government, however, has refused to back down, arguing that the tax is necessary to boost revenue collection.
“We understand the concerns of the traders, but we need to collect taxes to fund important public services such as healthcare, education, and infrastructure development,” said a government official.
The strike has sparked widespread condemnation, with many experts warning that it could have far-reaching economic implications for the country. In a statement, the Tanzania Private Sector Foundation (TPSF), a leading business organization, expressed solidarity with the traders, urging the government to engage in dialogue to resolve the issue.
“The strike by the Kariakoo traders is a clear indication of the negative impact of high taxes on businesses. We urge the government to reconsider this decision and engage in dialogue with the traders to find a solution that works for everyone,” said the TPSF.
The Kariakoo market is a vital economic hub in the country, employing thousands of people and providing affordable goods to millions. Many fear that if the strike persists, it could lead to widespread shortages of essential goods, as well as cause a slump in the country’s economy.
