Dar es Salaam’s Regional Commissioner, Albert Chalamila, has stepped in to resolve a standoff between Manzese traders and the Ubungo Municipal Council, following a dispute over unpaid service levy fees that had led to the closure of 11 shops.
The traders had staged a protest, demanding that the government adopt a flat-rate system for the service levy. In response, RC Chalamila held a meeting on Saturday, where he urged calm and offered a pathway forward, stating that the levy is anchored in law and cannot be arbitrarily revised without due legal process.
“The government under the leadership of President Samia Suluhu Hassan is committed to supporting the business community by creating a friendly and enabling environment,” said Mr Chalamila.
“However, tax reforms require a consultative process involving the relevant ministries. It is not something that can be altered overnight.”he added
To ease tensions and provide a practical solution, the regional commissioner instructed each trader to submit, starting Monday, a written statement detailing the amount they owe and a proposed payment plan.
He said this would allow municipal officials and trade experts to assess each case individually and recommend tailored repayment strategies that do not disrupt livelihoods.
Mr Chalamila also warned against politicising commercial issues and condemned the recent shop closures as counterproductive.
“Protests and strikes do not benefit anyone. Business is an individual enterprise, not a collective one,” he said.
The move has led to a breakthrough, with traders agreeing to reopen their shops and resume business operations.
The dispute highlights ongoing challenges in balancing local tax enforcement with trader welfare, particularly in bustling urban markets like Manzese.
However, authorities remain confident that with open dialogue and structured negotiations, long-term solutions can be reached.
The service levy, imposed by local governments across Tanzania, is designed to enhance service delivery but has in recent years drawn criticism from small traders who say it places a disproportionate burden on micro-businesses.