Zanzibar eyes tourism growth, increase in revenue collection in FY24

ZANZIBAR expects to raise its revenue collection from 2.38tri/- in the current financial year to more than 3.38tri/- in the next financial year.

This was revealed at the ‘2024/2025 Economy and Budget annual forum’ for stakeholders from local government and Non-Government Organisations (NGOs), held at the Sheikh Idriss Abdulwakil multipurpose Hall.

The Principal Secretary in the Ministry of State, Office of the President, Finance and Planning, Dr Juma Maliki Akili told the gathering that the revenue collection until the end of the current financial year which ends in June this year is projected to hit 2.38tri/-.

He said that good revenue collection this year was due to increased level of commitment by stakeholders in paying tax and promoting voluntary tax payment, increasing hard work by the Zanzibar Revenue Authority (ZRA) and Tanzania Revenue Authority (TRA), and strong relations between the authorities and key institutions.

“We predict to have economic growth of 7.2 per cent next year and our revenue collection may increase to 3.38tri/-, while the number of tourists will increase to 829,000 next year from 638,000, ending the financial year,” Dr Akili said.

According to the Bank of Tanzania, Zanzibar’s economy expanded by 6.8 per cent in 2022 driven by accommodation and food services, livestock, construction and manufacturing activities.

Dr Akili said that in 2019 the economic growth slowed down due to COVID-19 and that good planning has helped Zanzibar to recover its pace along with overcoming inflation, which was maintained at a single digit.

He said that increasing knowledge about tax among ZRA and TRA staff, improving the business/investment environment, increased projects, and increased production from the blue economy are added advantages to an admirable bright future for Zanzibar.

Minister of State, President’s Office Finance and Planning Dr Saada Mkuya Salum also emphasised on accountability among tax authorities as important in achieving the targets. She asked all people in the country to be part of the tax collection by paying taxes or motivating voluntary tax payments.

Principal Secretary, Ministry of State- Office of the President (Regional Administration, Local Government, and Special Department) Mr Issa Mahfoudh Haji said that all local government authority officials including directors, councillors, mayor, and other leaders will continue playing an important role in revenue collection so that the government collects enough to fund different programmes and projects.