2025/26 REVENUE: TRA eyes record collection

ARUSHA: THE Tanzania Revenue Authority (TRA) is on track to surpass its tax collection target for the 2025/26 financial year, having already exceeded the first-half goal by 103.7 per cent.

TRA collected 18.77tri/- from July to December 2025, exceeding the target of 18.10tri/- for the same period.

“These achievements indicate that TRA is on course to achieve, and even exceed the revenue target set for the 2025/26 financial year. This is a result of the government’s ongoing economic reforms, the introduction of clear policies and plans and improved revenue collection systems through the new IDRAS system, which will be officially launched early this month,” said Minister for Finance, Ambassador Khamis Mussa Omar.

He made the remarks yesterday in Arusha while officiating the opening of a meeting to assess TRA’s performance for the first half of the 2025/26 financial year and to set strategies for the remaining six months, from January to June 2026.

Minister Omar called on TRA to be a catalyst for tax collection and economic growth, creating a strong foundation to attract business and investment and help Tanzania become self-reliant.

He said the government has contributed to strengthening the tax system and revenue management, including promoting the economy through sound revenue collection policies that have enabled TRA to exceed its collection targets. “A friendly tax collection environment will boost the country’s economy,” he added.

Reflecting on past achievements, he noted that TRA collected 32.26tri/-/- in the 2024/25 financial year, compared to 22.2tri/- in 2021/22, marking a 45 per cent increase.

The Minister directed TRA to ensure its systems function efficiently, improve tax collection through modern technology, encourage voluntary tax compliance, expand the tax base and generate new revenue sources, particularly in the informal sector, digital economy, online commerce and other fast-growing sectors, to reach the annual target of 36tri/-.

TRA Commissioner General, Yusuph Mwenda, said the authority is implementing a modern Internal Revenue Digital Automated System (IDRAS) to simplify tax collection, expand digital services and integrate Artificial Intelligence (AI) for data analysis, enabling traders to spend more time on business rather than visiting offices.

“We commend the government for investing in this system, which will bring more taxpayers into compliance. TRA currently has over 7 million registered taxpayers and the aim is to expand this number to support various economic and development activities,” he said.

ALSO READ: Boost for rapid transit users

Mwenda also emphasised professionalism among TRA staff, noting that employees who fail to meet standards are being warned or subjected to ethical measures. He encouraged continued cooperation with taxpayers to ensure smooth operations.

Meanwhile, Tanzania Private Sector Federation (TPSF) President, Angelina Ngalula, urged TRA to expand AI use to improve efficiency and extend working hours for the revenue collection task force, reducing friction between traders and the authority.

“We request that practical measures be implemented to facilitate efficient operations and reduce conflicts in revenue collection,” she said.

Acting TRA Board Chairperson, Dr Albina Chuwa, said challenges encountered during the first six months will be addressed to increase taxpayer numbers and promote economic growth, leveraging President Samia Suluhu Hassan’s “4Rs” approach to boost the economy.