THE IMPACT OF BUSINESS ENVIRONMENT ON TRADE: THE CASE OF KARIAKOO INTERNATIONAL MARKET, TANZANIA

This study was conducted to investigate the impact of the business environment on trade with reference to the Kariakoo International Market in Dar es Salaam, Tanzania. The study employed a case study design and documentary review methodology. Content analysis was employed to analyze data. The research found that the Market is facing many challenges related to taxes and non-taxes. Tax challenges comprise numerous and high taxes that do not match the value of goods sold by businesspersons and purchased by consumers. Non-taxes challenges include harassment of traders, and luggage carriers by Police, municipality guards, and TRA; the registration of cargo stores and taxing of goods in the stores; a large number of vendors doing business in front of shop owners; strikes by traders; bureaucracy in obtaining many permits from different institutions; rampant corruption and bribery; the poor arrangement of shops and uncontrolled auctioning of goods and renting shops. Such factors increase costs, delays, and risks leading to business closure or runaway. Further, the key players in the market were identified, and their role in forming the existing business environment in the market was thoroughly discussed. This study recommends: First, involving all the key players to find solutions for the challenges in the market. Second, enhancing taxpayers’ education and information on the importance of tax compliance by every citizen is key to success. Third, to prepare a platform where the government will give feedback to all stakeholders on revenue collection, and in financing the country’s development efforts. Fourth, enforce the use of Electronic Fiscal Devices to issue receipts. Fifth, encourages online business. Finally, the successful creation of a favorable business environment in the market, requires legislative support, effective design of the administrative structure and technical procedures, skilled staff, consultation processes with key players, and policies and regulations to reinforce it.