Why TRA fetched 5.9tri/- in third quarter

THE improved awareness among taxpayers and the strengthened collection systems have been mentioned as some of the attributes, which enabled the Tanzania Revenue Authority (TRA) to collect 97.9 per cent of its target for the third quarter of the financial year 2022/23.

In the third quarter of 2022/23, that covers January to March 2023, TRA collected 5.9tri/- out of the set target of 6tri/-.

These collections are up by 6.1 per cent from the amount collected in the corresponding period of the previous financial year 2021/2022, TRA said in a statement issued on Tuesday.

In a statement that was signed by TRA Commissioner General  Alphayo Kidata noted that in January alone, they exceeded the target  by collecting  2.01tri/- out of 1.9tri/- targeted.

According to the TRA statement, the January collections are equivalent to 103.5 per cent of the actual estimations.

The collections target of February was set 1.85tri/- but the actual collections registered 1.6tri/- being 86 per cent of the total estimations.

Moreover, the taxman surpassed the target in March by collecting 2.31tri/-, being 102 per cent of the actual target that was set at 2.2tri/-.

“This was attributed to timely resolution of issues, conducive environment for business, rising willingness among the public to pay taxes as well as the improved relations between the authority and taxpayers,” said Mr Kidata in a statement.

He added that there is an increase in the capacity of taxpayers to clear their tax arrears due to the government’s initiatives of paying tax refunds in time.

“Another reason is the improved relation between TRA and taxpayers that has resulted in enhanced capacity of the taxman to solving tax disputes outside the court,” said Mr Kidata, commending taxpayers for their continued support to the government’s initiatives in raising collections for national development.

He went on to explain that taxpayers are now enjoying a good and conducive business climate that has been set by the government in collaboration with stakeholders.

The TRA boss also asked Tanzanians to continue supporting the efforts by President Samia Suluhu Hassan, who has been insisting on the importance of companies, public institutions and organisations as well as individual taxpayers to continue adhering to voluntary tax payment.

In another development, Mr Kidata asked taxpayers to fulfill their legal requirements of submitting their tax returns and paying withholding tax on time, as well as continue using the Electronic Fiscal Devices (EFD) machines in all the transactions as required by the law.

Mr Kidata is optimistic that achievements made during the third quarter will serve as catalyst to further increase collections in the remaining period of the current fiscal year.

From July to December 2022, the taxman collected a total of 12.46 tri/-, which was 99 per cent of its 12.48 tri/- target.

In the implementation of the government budget for the current fiscal year, TRA was given a target to collect 23.65tri/- to partly finance the expenditure that was estimated at 41.4tri/-.