TRA opens the AFRITAC Workshop with call for increased use of digital systems in simplifying taxation

DAR ES SALAAM: REVENUE authorities in Africa have been urged to increase their use of technology, data and digital systems to address challenges arising from the growth of the informal sector, while ensuring that tax systems are simple, taxpayer-friendly and make it easier for businesses and individuals to meet their tax obligations.

The call was made today, August 10, 2026, in Dar es Salaam by the Commissioner General of the Tanzania Revenue Authority (TRA), Yusuph Mwenda, while officially opening the AFRITAC East Regional Workshop on Taxation and the Informal Sector.

Mwenda said revenue authorities should not rely solely on strict enforcement of tax laws to encourage businesses to enter the formal economy. Instead, they should place greater emphasis on taxpayer education, quality services and the simplification of tax procedures.

He said the use of technology and digital systems could help reduce costs, time and administrative burdens for taxpayers, thereby encouraging more businesses to transition into the formal economy.

“The informal sector should not be viewed solely as a source of revenue, but as an important part of the economy that requires an enabling environment for businesses to grow and eventually transition into the formal sector,” Mwenda said.

He explained that formalising businesses provides benefits to both entrepreneurs and the wider economy, including greater access to capital, increased investment opportunities, improved competitiveness and enhanced participation in the formal economy.

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According to Mwenda, revenue authorities should use data and evidence to identify the challenges facing businesses operating in the informal sector and develop systems that take into account the actual conditions under which these businesses operate.

He also urged participants at the workshop to use the opportunity to share experiences and develop practical strategies that can be implemented in their respective countries to improve tax administration and strengthen domestic revenue mobilisation.

Mwenda stressed that the success of the workshop should not be measured by the discussions alone, but by the concrete actions taken by participants after the workshop.

The regional workshop brings together stakeholders from tax authorities across Africa to discuss challenges and opportunities in tax administration, particularly in relation to the informal sector, and to explore ways of improving efficiency in domestic revenue collection.