Lawmakers call for strengthening tax revenues

DODOMA: MEMBERS of Parliament (MPs) have welcomed government’s tax measures as proposed by Finance Minister in the next financial year.

However, they stressed the urgency of broadening the tax base, particularly by integrating the informal sector and enhancing SME compliance.

The MPs said this in the National Assembly during the deliberations of the 2025/2026 national budget estimates, pegged at 56.47tri/-.

Ms Neema Lugangira (CCM Special Seats) revealed that six out of every ten shillings in circulation is held in the informal sector, hence, advised the government to enhance efforts aimed at formalising the sector.

She proposed extending tax holidays for startups from six months to three years to encourage formalisation and expand the tax net.

Meanwhile, Najma Murtaza Giga (Special Seats, CCM) called on Tanzanians to embrace tax compliance as a national duty.

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She warned against dishonest practices in tax collection, urging transparency and fairness to boost public trust and state revenue.

Asha Abdullah Juma (CCM Special Seats) acknowledged the Ministry of Finance’s efforts in harmonising the tax system, stressing the critical role tax revenues play in financing the country’s development projects.

She cautioned against tax evasion and avoidance, urging the government to treat such practices as serious offences, in line with how they are handled in most developed nations.

She further called on the Tanzania Revenue Authority (TRA) and traders to foster stronger relations, urging TRA to intensify public education and awareness campaigns to boost voluntary compliance.

Fatma Tawfiq (CCM Special Seats) welcomed the government’s progress in boosting domestic revenues, urging more efforts to strengthen tax collection.

“Data from the Ministry of Finance shows that domestic revenues have grown from 20.95tri/- in 2020/21 to 29.83tri/-—this is no mean feat,” she said.

We urge the ministry to continue sensitising citizens to demand receipts and encourage businesses to issue them, so we can raise more tax revenue to fund our development projects instead of depending on donors,” said the long-serving politician.

Ms Tawfiq, meanwhile, urged the government to invest in the improvement of groundnut seeds for increased production of groundnuts which would increase domestic production of edible oil.