Sunday, May 29, 2011

Bank M appointed to collect taxes

BANK M Tanzania Limited (Bank M), a corporate and investment bank, has been appointed by the Tanzania Revenue Authority (TRA) to collect taxes on its behalf.

Launching the product branded Money.Mapato in Dar es Salaam, the Bank M Chairman, Mr Nimrod Mkono, said the service will enable taxpayers make transactions in five minutes.

“We have set new standards to ensure taxpayers are honoured with reliable and top quality service”, he said.

Mr Mkono who is also the Member of Parliament for Musoma Rural in Mara Region said that the bank will continue to invest in new products and services. He said that the new service will be available- seven days a week.

Bank M becomes the first domestic bank to install and use of AsyBank, a TRA customs payment system that offers quick results. Other banks that are using similar system are Citibank and Standard Chartered Bank but don’t work on Sundays.

He said that research shows that taxpayers fail to meet their obligations due to long queues and at times are forced to pay a day or two before to beat the deadline and avoid penalties.

On his part, TRA’s Acting Director of Accounting Operations, Mr Happiness Nkya said the authority is delighted by the initiative which will help improve revenue collection.

“I need to salute you for reducing cost of doing business especially on the clearance of goods at different entry customs points,” Mr Nkya said.

He said the bank has integrated in their systems to TRA’s ASYCUDA tax management software whereby payments are done electronically and at a short time. “Other banks (Citibank and Stanchart) are doing the same but not quickly and encouraging as Bank M,” Mr Nkya who represented the TRA Commissioner General said.

The bank’s CEO Sanjeev Kumar said the idea is to introduce products and services with levels of commitment and unique to the customers.

“We are introducing this service with the assurance that payment of taxes will improve and finally help TRA meets its targets”, he said.

To fulfill their promises, he said, if taxes are not paid as promised the monthly account fee for that particular time will be waived. “No such a bank in the country has ever offered such service or guarantee”, he said.

The taxes which the bank is authorized to collect under the Domestic Revenue Department are VAT on Local goods, VAT on Local services, Stamp Duty and Income Taxes. Bank M got a licence in 2007 and opened window same year.

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