TRA surpasses first-quarter tax target

DAR ES SALAAM: THE Tanzania Revenue Authority (TRA) collected 8.97tri/- in the first quarter of the 2025/26 financial year, achieving 106.3 per cent of its quarterly target as improved business conditions and renewed investment supported collections.

According to TRA quarterly report, there has been consistent growth from July to September, with collections exceeding 100 per cent of the set targets each month.

In July, the authority achieved 104.1 per cent of its target, collecting 2.68tri/- against a goal of 2.57tri/-.

August marked the highest performance of the quarter, with 2.82tri/- collected against a target of 2.56tri/-, equivalent to 110 per cent.

The upward trend continued in September, as TRA collected 3.47tri/- against a target of 3.31tri/-, translating to a 105 per cent performance.

Deputy Permanent Secretary in the Ministry of Finance, Elijah Mwandubya, said in his speech at the Tanzania Institute of Tax Administration (ITA) graduation recently that the strong performance reflects ongoing reforms to improve efficiency, expand the tax base, and strengthen digital revenue systems nationwide.

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“The government attributes the achievement to three strategic pillars: expanding the taxpayer register, improving compliance through digital platforms and enhancing professionalism among tax officers, as these factors have significantly boosted voluntary tax payments and reduced leakages,” Mr Mwandubya said

In the first quarter of 2025/26, TRA collected a total of 8.97tri/-, achieving 106.3 per cent of its quarterly target—a record reached without introducing new tax rates or raising existing ones.

The PS said ample revenue collection will enable the government to finance a larger share of its development agenda through internal capacity rather than additional tax burdens on businesses.

The 2025/26 total budget was pegged at 56.49tri/- where the recurrent expenditure account for 68.3 per cent equivalent of 38.6tri/-, covering wages, debt servicing, and other operational costs, while the development expenditure was 29 per cent of the budget of 16.4tri/-.

Financing primarily come from domestic revenue or 38.9tri/-, of total budget with the rest from external sources, including grants, concessional loans, and commercial loans.

Mr Mwandubya stressed that the government does not plan to impose additional tax burdens on the business community, noting that the latest results demonstrate how efficiency reforms can deliver stronger outcomes than raising tax rates.

“The potential for increasing domestic revenue lies not in higher taxes, but in expanding the taxpayer base, supporting business operations, and maintaining an efficient and transparent tax system,” he said.

The increase in revenue collection also stems from the authority’s workforce, which has undergone intensive training to enhance audit quality, enforcement, and modern risk-based revenue management a shift that has strengthened oversight and broadened the tax net.

Furthermore, the government will continue investing in digital infrastructure and administrative reforms to sustain robust revenue performance and foster private sector–led growth.

During the event, the Deputy PS conferred awards to 561 graduates in various disciplines, including certificates, diplomas, degrees and master’s qualifications in tax collection, information security, and customs management.