PUNDITS on Sunday described the rise in revenue collection by the Tanzania Revenue Authority (TRA) during the first quarter as ‘good sign for post-Covid 19 economic recovery’.
The TRA collections in the first quarter of this financial year increased by 14.5 per cent compared to collections in the corresponding period last year.
The taxman has collected 5.92tri/- during the three months of July, August and September this year, while the same period last year it collected 5.17tri/-.
Economic expert Dr Bohela Lunogelo said the collections show good economic governance and political stability.
“With growth in international trade, the revenues could have gone even higher if there was no Russia-Ukraine conflict,” Dr Lunogelo argued.
He pointed out that the good collection would enable the government to implement its promises to citizens in bringing social-economic development.
Commenting, University of Dodoma (UDOM) lecturer Dr Paul Lousilie, said the rise in revenue collection shows that commitment by the government and political will has paid off.
“There is high political will from top leadership to down. The President and her aides continue doing more efforts in opening up the country,” he said.
“This is an indication that it is possible to increase revenues, only that it requires more effort and creativity.”
Dr Lousilie further said the achievement should serve as catalyst to put more efforts and infrastructures for tax collection, suggesting that the country should emphasize more on the use of EFD in small and medium businesses.
According to TRA’s statement signed by the Commissioner General Alphayo Kidata, the month of September surpassed the target by 105.5 per cent whereby the authority collected 2.27tri/- against the target of 2.15tri/-.
The figure indicates an increase by 14.3 per cent from the collection of September last year when the collection was 1.99tri/-.
In July this year the collection was 1.76tri/- while the same period last year was 1.53tri/-.
Meanwhile, this year’s August collection was 1.89tri/- while the TRA collected 1.65tri/- in August last year.
Mr Kidata attributed the upward trend in tax collection to heightened use of electronic systems in tax management, improved environment for doing business in the country, increased tax compliance, resolving tax cases out of the court, addressing taxpayers’ challenges and strengthened taxpayer education.
Mr Kidata further cited strengthened industrial production and international trade as other reasons.
“It is clear that taxpayers have continued implementing their duty of paying tax as per the law. This is an indication of high patriotism and increased tax compliance among taxpayers in bringing sustainable development to our country,” he explained.
Dr Kidata argued that achievements made during the first quarter will serve as catalyst to further increase collections in the remaining period of the year 2022/23.
“It’s our hope that taxpayers and the public at large would continue to cooperate with us in a mission to raise government revenues, and hence building its capacity of effectively running its activities, and bringing development to our people,” he stated.
He used the opportunity to remind taxpayers to ensure they use Electronic Fiscal Device (EFD).
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