Remove tax collection bottlenecks-PM orders
ARUSHA: PRIME Minister Kassim Majaliwa has directed the Ministry of Finance and the Tanzania Revenue Authority (TRA) to address persistent tax collection bottlenecks in a bid to broaden the tax base and enhance national revenue.
While commending TRA for surpassing its collection target in the past financial year, the Premier stressed that more can still be achieved if existing challenges are resolved.
He made the remarks yesterday in Arusha while officiating a five-day working session organised by TRA, where he also issued key directives for improving efficiency in revenue mobilisation.
“The current performance in tax collection is commendable. Reports indicate that TRA collected 32.26 tri/- against a target of 31.05 tri/-, achieving a 103.9 per cent performance rate,” said Mr Majaliwa.
He hailed the achievement as a historic milestone that reflects professionalism and commitment within the authority. However, he urged the Ministry of Finance to critically review current policies, in line with TRA’s recommendations, to identify gaps that hinder efficient tax collection.
“The Ministry should strengthen existing regulations and operational systems to boost staff productivity and streamline processes,” he added.
The Prime Minister also urged TRA to continue employing innovative strategies that have proven effective in boosting revenue.
He emphasised the importance of maintaining a professional and user-friendly approach, in compliance with laws and procedures, as emphasised by President Samia Suluhu Hassan.
He underscored the need for TRA to take taxpayer concerns seriously and to consistently improve systems, particularly those supporting virtual transactions. He discouraged direct meetings between tax officers and taxpayers, saying such interactions may lead to discussions that fall outside the scope of tax obligations.
Addressing concerns about foreign traders operating untaxed in Dar es Salaam’s Kariakoo business hub, Mr Majaliwa instructed authorities to educate them on the importance of compliance, while urging the private sector to promote voluntary tax payment and actively collaborate with TRA.
He reminded Tanzanians that paying taxes is a national duty, noting that tax revenues are essential for funding development projects. “Make sure you pay taxes on time and always request receipts after every purchase,” he stressed.
Mr Majaliwa further reiterated the government’s commitment to creating a business-friendly environment to attract both domestic and foreign investors. He noted that an efficient system is already in place to track and support new entrants in the investment landscape.
Shifting to national matters, the Premier called on the public to participate responsibly in the upcoming general elections. He urged citizens to not only contest leadership positions but also elect candidates who prioritise unity and national interest. “Scrutinise candidates who promote divisive politics,” he advised.
Finance Minister Dr Mwigulu Nchemba, who also addressed the gathering, applauded TRA’s outstanding performance, noting that many of the previous complaints raised by taxpayers had already been addressed, though there was still room for improvement.
“We must ensure every Tanzanian understands that the country’s development is anchored in tax contributions,” said Dr Nchemba.
He noted that the government is investing heavily in building robust systems to support automation and reduce human interference, with President Samia allocating significant funds for this purpose, saying the goal is to enhance transparency and efficiency in revenue collection.
Dr Nchemba further pledged that the ministry will continue supporting tax education through various platforms, including public outreach campaigns and even sports initiatives to increase awareness and encourage voluntary compliance.
Earlier, TRA Commissioner General, Yusuph Mwenda reported that the authority recorded a 16.7 per cent increase in revenue collection compared to the previous year, reaching 27.64tri/-. He highlighted that, for the first time since the authority’s establishment in 1996, monthly revenue targets were met for all 12 months, surpassing targets tenfold.
He also noted that the monthly average tax collection rose from 2.3tri/- last year to 2.6tri/- this year, marking a 61-fold increase since TRA’s inception 29 years ago.
“This translates to a 77 per cent increase in tax collection during the four years of President Samia’s administration,” he added.
Mr Mwenda credited the achievement to enhanced use of ICT systems, the formation of the President’s tax reform commission and the recruitment of new tax officials.
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Looking ahead, TRA has set an ambitious goal to collect 36tri/- in gross revenue in the current fiscal year, comprising 34tri/- from Mainland Tanzania and 875bn/- from Zanzibar, with an additional 1.2 tri/- allocated for tax refunds to businesses.
