TRA urged to close revenue collection gap

ZANZIBAR: MINISTER for Finance, Ambassador Khamis Mussa Omar has urged the Tanzania Revenue Authority (TRA) to strengthen revenue collection through improved customs administration, effective use of data and closer cooperation with business stakeholders.

He said the measures were essential to improving collection efficiency and financing government development plans.

Speaking during a visit to TRA offices in Zanzibar, Ambassador Omar said the visit aimed to assess revenue performance, discuss challenges and identify opportunities to improve operations during the remainder of the financial year.

He said TRA Zanzibar collected 216.3bn/- during the first quarter against a target of 245.6bn/-, achieving 88 per cent and recording a shortfall of more than 29bn/-.

The minister said the performance called for intensified collection efforts, particularly in the Customs Department, to ensure that revenue targets are achieved and development projects adequately financed.

He stressed the importance of analysing accurate data to understand changes in trade volumes, the types and values of imported goods, and economic activities influencing revenue performance.

Ambassador Omar also called for stronger cooperation between TRA and the Zanzibar Ports Corporation (ZPC) to reconcile cargo statistics with revenue collection figures, enabling the government to make decisions based on reliable trade information.

He urged customs officials to improve inspection, valuation and verification of import and export documents to ensure that the correct taxes were assessed and collected on time.

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The minister further proposed the introduction of performance indicators for tax consultants and clearing and forwarding agents, taking into account their responsibilities in the tax system.

He also called for faster resolution of long-standing tax disputes to facilitate payments and improve services to taxpayers.

“The government depends on the revenue collected to finance essential public services, including healthcare, salaries and other development needs,” he said.

He urged TRA to harness data, technology and stakeholder cooperation to improve efficiency. For his part, TRA Deputy Commissioner General Mcha Hassan Mcha said the authority would continue implementing government directives to improve tax collection and support national development goals.

He said the TRA Zanzibar office had been assigned a revenue collection target of 1.144tri/-, equivalent to 34 per cent of the tax and nontax revenue projected in the Zanzibar Revolutionary Government’s budget.

Mr Mcha said the authority would make every effort to achieve the target and ensure that the revenue supported planned development activities.