Non-tax revenue hits 67pc as TR targets full-year goal

DAR ES SALAAM: THE government, through the Office of the Treasury Registrar (OTR), has made significant progress in collecting non-tax revenue, reaching 749bn/- as of May 7th this year.

This amount represents 67 percent of the annual target of 1.113tri/- for the 2024/25 financial year.

The update was delivered on Wednesday by Director of Performance Management, Monitoring and Evaluation for commercial public entities at the OTR Ms Lightness Mauki.

She was speaking ahead of the upcoming Gawio Day ‘Dividend Day’, to be held on June 6th, this year, at the State House in Chamwino, Dodoma.

On that day, President Samia Suluhu Hassan is expected to receive dividends from public entities and companies in which, the government holds minority shares.

Earlier, speaking during a special 30-minute programme aired on TBC on Tuesday night, Ms Mauki said that many institutions are still in the process of holding their Annual General Meetings (AGMs), and expressed confidence that the target will be met by the end of the financial year.

Tuesday’s TBC programme focused on highlighting the contribution of public institutions to national development through non-tax revenue.

“We are confident that we will present a strong dividend to the President on June 6th, this year” she said.

From the total collections of 749bn/-, dividends from corporations and minority interests accounted for 63 per cent.

The mandatory 15 per cent contribution from gross revenues to the Consolidated Fund accounts for 29 per cent, while other remittances, including on-lending (loan repayments and interest), and collections from the Telecommunication Traffic Monitoring System (TTMS), contributed 8 per cent.

Collections, as of May 7th this year, are significantly higher than the 500bn/- recorded the same date last year an increase of nearly 50 per cent.

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According to the Treasury Registrar, Mr Nehemiah Mchechu, OTR’s strong performance is the result of strategic oversight and reforms carried out in collaboration with public institutions.

He explained that the office has systematically reviewed shareholder agreements, operational contracts, and technical assistance agreements to reduce operational costs and improve returns to the government.

He further noted that the implementation of ICT systems particularly the Government Electronic Payment Gateway (GePG) has significantly improved transparency, accountability, and efficiency in revenue collection.

Speaking yesterday morning during a special edition of the Kumepambazuka programme aired on a local radio station, the Director of Management Services at the Office of the Treasury Registrar (OTR), Ms Neema Musomba, said the office has enhanced quarterly, semi-annual, and annual performance reviews of public institutions, along with more rigorous budget scrutiny prior to approval.

“These measures have enhanced the government’s financial oversight of public entities,” she underscored as she was speaking ahead of the Gawio Day.

Ms Musomba also said that performance contract evaluations between OTR and the Boards of Directors of public institutions have been intensified, promoting direct accountability among institutional leaders.

Non-tax revenue: A pillar of national development Non-tax revenues continue to be a cornerstone for funding essential public services such as education, healthcare, clean water, and infrastructure.