STARTING AN ACTIVITY AND FORMALIZING A BUSINESS....!!!!

A LOT of discussion is often put up concerning how far informal sector operators pay tax, and it must take up some effort on the part of business educators to draw the line between what is civic to do . In a meantime, we need to ask what is necessary in terms of business activity. The question that comes up is the link between civic duty and paying tax, and how this comes up when one starts an activity. For in the final analysis most small businesses start up simply as activities that are expected to generate incomes but not assured to succeed. In other words what is first is success, not the tax part. Ethically speaking, the notion of taxation in how it has developed it twofold, first as tribute one pays to the ruler (the king, chief or headman, whoever was in charge of a certain place) so that there are resources for interventions when the need arises. Later on, as society became increasingly stratified, tax stopped being just a tribute paid by everyone, for instance after the harvest or during that period, to become a charity. Many religious codes put a mark on wealth to be surrendered to the priesthood, with some as low as ten per cent and some as high as 20 percent. It is largely this latter aspect that became secularized and became a tax, received by the government to enhance the provision of public services. The latter are the sort of needs that cannot be put up by individuals on their own, or by liaising between them, requiring proper authorities to coordinate such activity. But in that sense, ethical notions of tax, including the element of patriotism or civic attitude cannot afford to lose scope of how taxation comes about, for instance if the tax requirements on an informal sector operator is tribute for common good, or charity. An example of this confusion is the recently rescinded excise tax on sim-cards, which was brought in to replace a 12 per cent tax on topping up of airtime. The latter kind of taxation would bring those who pile up airtime on their phones to pay plenty, which is consonant with 'reinforced charity,' while the MPs chose a tributary Tsh1,000 tax for everyone, which is uncharitable. Their effort to raise a patriotic flavor out of this, that it is payable, could not hide that ethical deformity. That is also why those who start small activities for their upkeep and their families, where breaking even is not assured let alone when one starts making a profit need not to worry so much as to the ethical issues of paying taxes. As it is clear from the mobile phone excise phone example, the middle classes all too often make too much noise as to their paying taxes, which in ethical terms is a drawback, as the Messiah once pointed out in a temple ceremony. When everyone has placed coins in the collection (for sadq, offerings) he said a widow had given the most, as she gave the last coin she had while everyone else gave what is in excess of their needs, One at times wonders if middle class policy makers always berating about 'expansion of the tax base' wish that the poor give the last coin they have before they accept that the poor are making an effort. As a matter of fact, the first civic duty of the poor is to try and occupy oneself with something gainful, even if it just was to plant vegetables around the house for direct use, for a balanced diet, and then seek some cash for grain, fish, etc. Any occupation is a civic plus because it reduces the number of desperate people; those who just live marginally are not ethically bound to add to charity - they do so by reducing those crying for charity. So the point is peacefulness for one who has just started a trade, is not making a profit that anyone can talk about, does ot have registered business places where it is unlikely not to be noticed by the tax enforcers, like frames along busy roads.  Let such person spend no sleepless nights that he or she is not 'contributing to national development.' When one keeps a small family out hunger, a number of children in school and out of begging or exposure to harm by being put to labour, the Messiah would say the person has done better than millionaires, who can afford even more. (ends) Darzonetz