Friday, March 27, 2009

7 Days at Shukrani - Wednesday

Wednesday:

Early start with an 8.15am class. By about 8.30 am most students were present.As per Monday, a few instructions, and they were practicing entering the data.I have set up companies for each student (3 sets per computer) and every time instruct them in how to access their company. Open Company, click Next, choose My Documents>Company Files - then select their named folder, Click on the company and choose Open. Unfortunately not all follow the instruction correctly, and data has often been entered into the wrong 'company file'. Oh well, it is good practice.

Early afternoon was discussion with Lucas about tax in Tanzania. There is the official system. VAT is 20%, so we have it good with GST at 10%. The system is similar to ours, but with more exemptions.Businesses with annual gross turnover of 40 million Tshs ($50,000) must be registered. If you are you submit a monthly return, and pay the difference between tax paid on purchases and tax received on sales.If you are not registered you pay VAT on goods you buy from registered businesses, and the taxman will visit and estimate a tax on your business based on what they see and what you tell them. They may well check your assets. If you are not registered, you get hit twice! As with life at home many people try to avoid paying tax. Here the incentives may be greater, and the punishment not so certain. The Tanzanian Revenue Authority handbook on VAT includes a prominent message "Bribes will kill the nation". There are ways to avoid the wrath of the authorities - they are against the law, and they all involve money.

In the afternoon we went shopping for some necessaries - and dropped by the food hall on our way home. It was later in the day and our 'chapatti lady' was cooking mandazi- hot donuts! We learned that she is Mariam; her sister is Margaret (she was doing the cooking). Her neighbouring foodie, Doris, also took the time to talk with us. It was good to be able to get past numbers and to begin to get to know them a little more.

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