Explore new tax avenues to boost domestic revenue, TRA told

ZANZIBAR: ZANZIBAR Minister of State in the President’s Office (Finance and Planning), Dr Saada Mkuya Salum has urged the Tanzania Revenue Authority (TRA) to invest in research aimed at identifying new sources of tax revenue and broadening the country’s tax base.

Dr Mkuya made the call while officiating the opening of the TRA Zanzibar performance review meeting for the 2024/2025 financial year over the weekend.

The meeting brought together key stakeholders to deliberate on two main topics: “TRA Zanzibar Performance Status for the Financial Year 2024/2025 – Challenges and Strategies to Enhance Revenue Collection for 2025/2026” and “Strategic Focus of TRA Zanzibar’s Revenue Collection for FY 2025/2026 and the Way Forward.”

In her keynote address, the minister called for innovative and adaptive approaches in tax collection, citing ongoing economic and social changes driven by citizens’ growing financial activities.

“As the economy evolves, so should our strategies. Broadening the tax base is crucial for increasing domestic revenue, which in turn strengthens our economy, improves public welfare and supports key development projects,” Dr Mkuya said.

She also called on TRA to intensify public education campaigns about the importance of tax compliance, saying that awareness remains low among some citizens and business owners.

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“Many people still lack adequate knowledge about taxation both in terms of its significance and the laws and procedures that govern it,” she noted.

“Enhancing public awareness will boost compliance and contribute to social and economic development.” Dr Mkuya further encouraged TRA to maintain transparency by sharing information on how tax revenues are utilised in national development efforts.

“When the public sees the direct benefits of their tax contributions, trust is built and voluntary compliance improves,” she added.

Speaking at the event, TRA Commissioner General Mr Yussuf Juma Mwenda said the purpose of the meeting was to assess TRA Zanzibar’s performance over the past year, address challenges in tax administration and outline strategies to improve revenue collection in the upcoming fiscal year.

TRA Deputy Commissioner Zanzibar, Mr Mcha Hassan Mcha said that the authority collected over 600bn/- in the last financial year. He said the target for the 2025/2026 fiscal year is to increase collections to between 800bn/- and 1tri/-.