Revenues surge by 78pc

DODOMA: MAJOR reforms in the Tanzania Revenue Authority (TRA) have been highlighted as key components of President Samia Suluhu Hassan’s 4Rs philosophy which have significantly impacted the country’s financial sector by widening the tax base and increasing revenues by 78 per cent over the past four years.

The latest report shows that in the eight-month period from July 2024 to February 2025, the authority collected 21.2tri/-, achieving a success rate of 104 per cent against the targeted 20.42tri/- for this financial year.

Briefing reporters in Dodoma yesterday, TRA Commissioner General Yusuph Mwenda said that in the first eight months of the 2020/2021 financial year, before President Samia assumed office, the authority had collected only 11.92tri/-.

Comparing the two periods, the commissioner noted that collections have soared by 9.28 tri/-, equivalent to a 78 per cent increase.

According to Commissioner Mwenda, in the 2024/25 financial year, TRA has surpassed its monthly targets for eight consecutive months, a record-breaking achievement for the tax authority.

“We have achieved this following President Samia’s directives to TRA on rebuilding and strengthening good relationships with traders and citizens,” he said.

Mr Mwenda explained that when President Samia assumed power in March 2021, she directed TRA to collect taxes professionally, expand the tax base and implement the 4Rs philosophy—Reconciliation, Reforms, Resilience and Rebuilding, which has significantly contributed to the said successes.

He added that TRA’s efforts to improve the business and investment environment, in collaboration with the Tanzania Investment Centre (TIC) and address bureaucratic challenges in tax payment procedures have cumulatively widened the country’s tax base.

According to the Taxman, in the first eight months of 2020/2021, the authority paid 92.37m/- in VAT refunds. Four years later, from July 2024 to February 2025, the amount surged to approximately 1.2tri/-, reflecting an impressive performance.

Moreover, the commissioner noted that over the past four years, TRA has taken disciplinary measures against 54 staff members linked to malpractices. Of the said number of staff, 14 were dismissed, six received pay cuts, 12 were demoted and 22 were issued warning letters.

To enhance efficiency in tax collection, TRA has also invested in ICT by introducing and upgrading tax management systems, which have significantly improved revenue collection and settlements.

Regarding human resources, he added that over the past four years, TRA has expanded its workforce, reaching 6,989 employees by March 2025, which is an increase of 2,240. Moreover, Mr Mwenda said the authority is in the process of recruiting 1,596 more employees by June, this year.

“This is part of President Samia’s initiative to ensure all citizens receive quality services by equipping TRA with enough staff to efficiently discharge its duties,” he stated. However, he issued a stern warning to traders who issue fake receipts or collude with customers to evade taxes.

Looking ahead, the commissioner said TRA will continue to implement President Samia’s directives on tax management.

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He added that TRA will focus on strengthening its internal tax systems, customs operations and other mechanisms to enhance economic activities and further widen the country’s tax base.

Welcoming the commissioner, the Permanent Secretary in the Ministry of Information, Culture, Arts and Sports and Chief Government Spokesperson, Gerson Msigwa urged Tanzanians to take pride in paying taxes, emphasising that tax revenues are being used to improve social services, including education and healthcare.