Voluntary tax compliance rises to 80 pc in Isles

ZANZIBAR: VOLUNTARY tax compliance among Zanzibar citizens is steadily increasing, according to Deputy Minister in the President’s Office (Finance and Planning), Mr Juma Makungu.

Responding to a question from Ameir Abdalla Ameir (Mwanakwerekwe) in the House of Representatives, Mr Makungu said since the implementation of the Fourth Strategic Plan by the Zanzibar Revenue Authority (ZRA) in the 2020/2021 fiscal year, voluntary tax compliance has grown from 68 per cent to 80 per cent in 2023/2024.

“This progress is based on professional assessments of three key indicators of voluntary compliance. The percentage of tax returns filed electronically has increased from 0 to 50 per cent,” he said.

He further noted that the percentage of tax declarations filed on time rose from 84.6 per cent to 95 per cent, while timely tax payments increased from 73.27 per cent to 92 per cent, all pointing to improved performance.

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This growth reflects enhanced payment systems, including mobile money and bank payments, as well as awareness campaigns encouraging timely tax compliance. Tax advisory services have also been brought closer to taxpayers through regional offices, along with SMS reminders and door-to-door outreach.

Mr Makungu also pointed to the 2009 Tax Administration Act, which allows the ZRA Commissioner General to approve instalment payments for taxpayers, as an effective tool in boosting collections.

Looking ahead, the government through ZRA, plans to raise the voluntary compliance rate to 90 per cent by the 2029/2030 financial year in line with targets set in the Fifth ZRA Strategic Plan.

He added that the government will continue investing in ICT systems, learning from global best practices and expanding taxpayer education programmes using various communication channels and community outreach initiatives.