TRA tasked to research for taxable income

MINISTER for Finance, Dr Mwigulu  Nchemba has tasked the Tanzania Revenue Authority to research and conduct analysis to identify taxable income

ARUSHA: MINISTER for Finance, Dr Mwigulu  Nchemba has tasked the Tanzania Revenue Authority to research and conduct analysis to identify taxable income and establish a well-functioning and user friendly system that will assist in the collection of revenues without causing chaos to tax- payers.

Speaking during the closing session of the TRA’s executive meeting held on Friday in Arusha, Dr Nchemba, directed the authority to always consider professionalism and law when collecting taxes from taxpayers.

He said President Samia Suluhu Hassan has been emphasising on professionalism and adherence to the law and provision of education on issues related to imposing and collection of revenues.

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“So far TRA is doing great, numbers do not lie, we have been able to collect more rev- enues,” he noted.

Dr Nchemba said tax collections has been increasing year after year and that in the last financial year, the taxman managed to collect 27tri/-, which was an increase of 5tri/- for 2022/2023 fiscal year.

Also read: Tanzania tax collections hit 27.64tri/-

The Minister commended TRA for recording good performance in tax collection with an increase of 11.5 per cent for 2023/2024 fiscal year.

“Let’s go and research on the best ways of getting tax, we must identify proper tax- able income,” he noted.

Dr Nchemba attributed the increase in collections to the good policies and strategies that have been put in place by the government.

“The government has boosted domestic production and improved tour- ism sector,” he noted.

The minister also mentioned the government’s initiative to establish modern electronic systems that have helped to simplify tax pay- ment.

He urged TRA officials to strengthen the electronic tax payment system and eliminate unnecessary inconveniences between TRA officials and tax- payers.

Dr Nchemba instructed TRA to ensure they provide tax exemptions for young en- trepreneurs who are just starting their businesses, to allow their businesses to grow and generate profits.

“We need to improve this area so that we can attract more people to start-up businesses, this will help us to get more tax in future,” he said.

Dr Nchemba emphasised on the provision of education, saying people need knowledge on the importance of paying tax and its utilisation in the implementation of various development projects.

Moreover, the Minister directed TRA officials to take stern measures against traders and other officials who evade paying tax. “

Some people tend to tamper with tax paying systems to evade tax, these must be investigated for legal measures to take place against them, there must be no loopholes in revenue collections,” he added.