New tax culture delivers

• Collections soar past 32tri/-

DAR ES SALAAM: IN a historic milestone for Tanzania’s tax administration, the Tanzania Revenue Authority (TRA) has surpassed its revenue collection targets in all 12 months of the 2024/2025 financial year, marking the first time such an achievement has occurred since the authority’s establishment in 1996.

TRA Commissioner General, Mr Yusuph Mwenda announced on Tuesday that total collections reached 32.2tri/-, exceeding the target of approximately 31tri/-, representing a 16.7 per cent increase over the previous financial year.

Speaking at a special ceremony in Dar es Salaam to honour and thank taxpayers across the country, Mr Mwenda described the achievement as the highest performance ever recorded by the Authority.

“For the first time, we have exceeded our revenue target in every single month of the financial year.

This is not only historic but sets a new benchmark for future performance,” said Mr Mwenda. “We are committed to doing whatever it takes to sustain this momentum.”

He credited the success to a new tax collection approach that emphasises consultation, education and voluntary compliance.

TRA, he said, has shifted away from aggressive enforcement tactics toward a more collaborative model, in line with President Samia Suluhu Hassan’s directive to foster a taxpayer-friendly environment.

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Mr Mwenda recalled that when TRA was founded, its annual target stood at 539bn/-, with actual collections at 531bn/-, representing about 98 per cent of the goal. At the time, the monthly average was just 44bn/-, compared to over 2.5tri/- in 2025.

He noted that three months, September and December 2024 and June 2025, each recorded collections exceeding 3tri/-, further underlining the year’s exceptional performance.

“President Samia’s vision has been clear: engage taxpayers, don’t intimidate them. Her approach encourages dialogue and builds trust, allowing businesses to grow while contributing their fair share,” Mr Mwenda said.

He said that the president sees domestic tax revenues as key to building a self-reliant economy capable of funding major development projects.

In support of this vision, she approved the recruitment of 1,896 new TRA employees, boosting the authority’s workforce to nearly 7,000 and addressing long-standing delays in business audits and tax processing.

Mr Mwenda said the president established a Tax Reforms Commission to gather input from stakeholders across the economy on how to improve tax compliance and expand the revenue base.

Mr Mwenda also acknowledged the president’s support for the TRA Annual Taxpayer Awards, highlighting her attendance at last year’s ceremony as a major morale boost and sign of her commitment to voluntary tax compliance.

He attributed the Authority’s success not only to policy reforms but also to expanding economic activities at ports, airports and along road networks, along with continued population growth and strengthened administrative capacity.

TRA aims to collect 36tri/- in the 2025/2026 financial year.

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Earlier, TRA Board Chairperson, Mr Uledi Mussa praised the achievement and expressed his ambition for TRA to become the top-performing revenue authority in Africa.

“We want to close funding gaps for strategic national projects and social services by relying more on domestic revenue,” Mr Mussa said.

Leaders from key business and tax stakeholder groups also praised TRA’s performance and pledged continued collaboration.

Tanzania Freight Forwarders Association (TAFA) President Mr Edward Urio commended TRA for its milestones and promised continued support to strengthen tax compliance.

Tanzania Association of Tax Consultants (TATC) representative, Ms Victoria Soka said the association is committed to working with TRA to expand the tax base and ensure fairness.

Meanwhile, Ms Melinda Muganda, representing the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), reaffirmed the chamber’s role in encouraging businesses to comply voluntarily with tax obligations.