YEAR ENDER: Voluntary compliance, reforms fuel TRA’s 2025 breakthrough

DAR ES SALAAM: THE year 2025 marked a historic turning point for the Tanzania Revenue Authority (TRA), characterised by exceptional performance in revenue collection, expansion of the tax base and strengthened trust between the Authority and taxpayers.

Through reforms centred on fairness, inclusion and service delivery, TRA entered a new era of efficiency and innovation, demonstrating that sustainable development is achievable when taxes are collected transparently and with citizen participation.

TRA recorded its strongest performance to date in the 2024/25 financial year (July 2024–June 2025), collecting 32.26tri/- equivalent to 103.9 per cent of the target of 31.05tri/-. This represented a growth of 16.7 per cent compared to the previous year’s collection of 27.64tri/-.

The momentum was particularly evident in the fourth quarter (April–June 2025), during which TRA collected 8.22tri/-, achieving 104.8 per cent efficiency and a 15.8 per cent increase compared to the same period in the previous year.

These achievements were largely driven by a shift in institutional philosophy from enforcement-based compliance to voluntary tax payment supported by education, engagement and improved taxpayer services.

According to TRA Commissioner General, Mr Yusuph Mwenda, the success recorded in 2025 reflects the policy direction of President Samia Suluhu Hassan, who consistently emphasises voluntary tax compliance over coercive measures.

Key reforms implemented under this guidance include the introduction of the President’s Awards for Best Taxpayers, the establishment of the Tax Reform Commission, and significant upgrades to TRA office infrastructure nationwide, measures that have improved efficiency and enhanced public confidence.

In 2025, TRA intensified direct engagement with taxpayers through regular visits to business centres across the country. These interactions enabled the Authority to listen to taxpayer concerns, resolve challenges in real time and deliver accurate tax education.

This people-centred approach strengthened mutual trust and significantly boosted voluntary tax compliance, translating into increased government revenue and improved relations between TRA and the business community.

One of the most transformative initiatives introduced by TRA in 2025 was the Special Business Empowerment Desk, designed to support small and medium-sized enterprises (SMEs).

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The initiative was officially launched in August 2025 in Morogoro Region by Mr Mwenda, who directed that the desk be established in every region, a directive that has since been fully implemented.

Speaking at the launch, Mr Mwenda said: “This desk will address taxpayers’ challenges while providing business and credit advisory services to support sustainable business growth. Every region must have this desk.”

Through the desk, entrepreneurs received business training, guidance on access to credit, professional advisory services and direct capital support. Demonstrating institutional commitment, the Commissioner General personally provided seed capital to several business groups across almost all regions.

Among the beneficiaries is Mussa Amiri of Dar es Salaam, whose entrepreneurship group received 2m/- in capital. The support enabled the group to expand its clothing business, diversify products and attract a wider customer base.

“We sincerely thank the TRA Commissioner General. In 2025, TRA touched our lives. Our capital was very limited before, but now our business is growing and our customer base has expanded,” said Mr Amiri.

Similarly, Anna Bakari from Geita Region testified to the impact of the initiative after her food business collapsed due to lack of capital. With support from TRA, the business was revived and is now operating successfully.

Through the Business Empowerment Desk, Ms Bakari and her colleagues received business training and were issued Taxpayer Identification Numbers (TINs) free of charge, enabling them to secure business licenses from local authorities and formalise their operations. Today, their business is legally recognised and preparing to begin tax contributions.

“I urge citizens and taxpayers to visit the Business Empowerment Desk for business and tax education. These services truly change lives,” she said.

In its efforts to broaden the tax base, TRA in 2025 introduced online business registration, initially targeting owners of rental properties operating through platforms such as Airbnb. The initiative has received strong public uptake and is expected to expand to other digital entrepreneurs, including transport operators and online service providers.

Launching the initiative, Mr Mwenda emphasised continued taxpayer education as a cornerstone of successful implementation.

“When the number of taxpayers increases, the tax burden is shared fairly and there is a greater possibility of reducing tax rates through an expanded tax base,” he noted.

TRA also convened a National Tax Conference through the Institute of Tax Administration (ITA), bringing together public and private sector stakeholders to discuss strategies for expanding the tax base and curbing tax evasion.

Key outcomes of the conference included the introduction of the Whistleblower Award, aimed at rewarding individuals who provide credible information on tax evasion, and the Innovation Award for New Revenue Sources, designed to encourage creativity in revenue mobilisation.

The year 2025 also marked a milestone in human resource development, with TRA recruiting over 1,800 employees across various professional cadres, the largest intake in the Authority’s history. This strategic move aims to enhance revenue collection efficiency and expand tax education outreach nationwide.

Towards the end of 2025, TRA intensified its crackdown on smuggling, particularly the illegal importation of cooking oil that bypasses customs procedures. This followed the seizure of 18,255 containers of smuggled cooking oil in Dar es Salaam.

“We will pursue all smugglers without exception and take firm legal action. I am also establishing a multi-stakeholder task force to develop a permanent solution,” said Mr Mwenda.

As it enters 2026, TRA remains committed to improving service delivery, strengthening tax education, actively listening to taxpayers, and resolving challenges promptly, efforts aligned with building a resilient and inclusive economy supported fairly and voluntarily by all Tanzanians.