Tanzanian bus owners wary of new e-ticketing system

Tanzania's revenue collecting agency, the Tanzania Revenue Authority revealed shocking findings that bus owners in the country have been losing close to 200 billion Tanzanian shillings due to the current manual taxing system. This revelation has sparked interest from the revenue body to streamline tax collection and plug revenue leakages in the transport sector. Economic Analyst, Rapgael Maganga, shed light on the issue in an interview with CNBC Africa. The Tanzania Revenue Authority conducted a survey over the last five months which uncovered that approximately 195 to 200 billion Tanzanian shillings have been lost through the issuance of physical bus tickets by bus owners and conductors. The loopholes identified in the manual taxing system have not only resulted in revenue loss for the bus owners but also impacted tax collection for the government. As the taxman seeks to shore up its tax base, the transport sector is now facing formal regulation with the implementation of an electronic ticketing system. By digitizing ticket issuance, the government aims to enhance revenue collection, eliminate price hikes on tickets, and ensure transparency in tax payments. Despite the potential benefits of an e-ticketing system, Tanzanian bus owners have expressed concerns and reservations about its implementation. The slow rollout of the system since its introduction in 2018 has left bus owners feeling disconnected and unengaged in the process. The lack of clear information and involvement from relevant stakeholders, including the bus owners association and the Land Transport Regulatory Authority, has fueled apprehensions about the system. While the idea of electronic ticketing is welcomed, bus owners emphasize the need for their participation in the service provision and revenue sharing. One of the major points of contention revolves around the potential increase in ticket prices due to the introduction of the e-ticketing system. The Tanzania Revenue Authority anticipates a 2% hike in taxes, leading to a slight surge in ticket fares. However, bus owners fear that additional fees may be levied, further burdening passengers. The current system, characterized by price hikes especially during holiday seasons, already places financial strain on commuters. The challenge lies in striking a balance between tax regulation and affordability to prevent exorbitant increment in ticket prices. The move towards electronic ticketing signifies a significant shift in Tanzania's public transport sector, aiming to modernize operations, enhance revenue collection, and curb malpractices associated with manual ticketing. While the implementation may present challenges, collaboration between the government, bus owners, and regulatory authorities will be crucial in ensuring a smooth transition to the new system. With proper education and awareness campaigns, stakeholders can overcome resistance and embrace the benefits of e-ticketing in transforming the country's transport industry.