Dr Nchemba calls for tougher action against tax evaders

ARUSHA: FINANCE Minister Dr Mwigulu Nchemba has directed the Tanzania Revenue Authority (TRA) to adopt a stricter stance toward businesses that intentionally evade taxes, while ensuring fairness and minimising disruptions to legitimate operations.

Dr Nchemba was speaking on Monday in Arusha during the opening of a crucial meeting for TRA executives.

The meeting focused on reviewing the performance of the past year, addressing challenges and developing strategies to enhance revenue collection in 2025.

The meeting brought together senior TRA officials, including heads of departments, directors from TRA headquarters, regional managers from the country’s 33 tax regions and district-level leaders.

Dr Nchemba insisted the importance of tax compliance for national development and urged TRA to enforce tax laws without hesitation.

“No country in the world has achieved development without collecting taxes to fund its progress. Tax evasion is unacceptable and those who engage in it must be held accountable,” he stated.

He also called on TRA staff to ensure equity in tax collection, stressing that no business or individual should receive preferential treatment.

“Every business and citizen must pay their rightful share of taxes. Those who fail to comply should face strict measures without exception,” Dr Nchemba declared.

The Minister expressed concern over discrepancies in the use of Electronic Fiscal Devices (EFDs), noting that some businesses have the machines while others in similar sectors do not.

“It is unacceptable for one business to be equipped with an EFD machine while its neighbour, engaged in similar activities, operates without one.

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TRA must address this issue immediately to eliminate such inequalities,” he said. Dr Nchemba also singled out fuel stations, accusing some operators of tampering with Electronic Fiscal Device (EFD) systems under the false pretext of technical malfunctions.

He directed TRA to intensify inspections and take stern action against those involved in such practices.

Emphasising the role of technology in enhancing tax collection, Dr Nchemba called for the swift implementation of digital systems across all sectors.

He urged TRA to ensure these systems are adopted in all regions to improve efficiency and transparency. “There are still areas where digital tax collection systems have not been installed.

These gaps must be urgently addressed to streamline operations and boost revenue generation,” he said.

Dr Nchemba commended TRA for its progress under the leadership of President Samia Suluhu Hassan, noting that the authority has achieved over 70 per cent of its revenue collection targets.

However, he stressed the need for continued improvement, particularly in tackling challenges such as corruption and inefficiency.

TRA Commissioner General Yusuph Mwenda echoed the minister’s sentiments, expressing gratitude to taxpayers for their compliance and assuring that measures are in place to deal with persistent defaulters.

“Chronic defaulters are being addressed through well-structured plans that encourage compliance without disrupting businesses. Our focus remains on increasing collections month by month,” Mr Mwenda said.

In a bid to maintain integrity within the organisation, Mr Mwenda revealed that TRA has taken strict disciplinary actions against unethical employees, including dismissals, demotions and salary cuts.

“These measures aim to ensure a professional and corruption-free environment within TRA, ultimately enhancing public trust in our operations,” he added.

Director of Administration and Human Resources Moshi Kbangwe insisted the importance of the meeting in resolving past challenges and planning for the future.

“This platform allows us to assess our performance and create a strategic action plan that will help us exceed our revenue collection targets in 2025,” he said.