Z’bar revenue jumps 41pc to 1.2tri/-

ZANZIBAR: THE Zanzibar Revenue Authority (ZRA) collected more than 1.215tri/- in the 2025/26 financial year, a 41 per cent increase from the previous year, reflecting improved economic activity and stronger tax administration.

In a statement, ZRA said it collected 1.215tri/- between July 2025 and June 2026, achieving 96.7 per cent of its 1.257tri/- target.

The figure represents an increase of 353.84bn/- from the 861.88bn/- collected in 2024/25. The authority attributed the performance to improved tax administration, stronger economic activity and increased voluntary tax compliance.

It also credited continued investment in infrastructure and social services, alongside Zanzibar’s economic growth under President Hussein Ali Mwinyi.

According to ZRA, improved trade relations between Zanzibar and Mainland Tanzania, supported by President Samia Suluhu Hassan’s leadership, have also contributed to increased revenue collection.

Other factors included integration of taxpayers’ business systems with ZRA platforms, particularly in the tourism sector, expanded taxpayer education through digital platforms and increased registration of new taxpayers, including foreign businesses operating in Zanzibar.

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The authority further cited strengthened collaboration with stakeholders and improved staff professionalism as key contributors to the revenue growth. For the 2026/27 financial year, ZRA has set a revenue target of 1.726tri/.

To achieve the goal, the authority plans to expand integration of business systems with its tax platforms, strengthen verification of imported goods to improve Value Added Tax (VAT) and excise duty collection, enhance taxpayer education and intensify tax audits in collaboration with other institutions.

It also plans to improve debt recovery, closely monitor government projects to ensure proper tax collection and promote voluntary compliance while taking action against tax defaulters. ZRA thanked taxpayers for their cooperation, saying voluntary compliance had played a key role in enabling the government to finance essential public services.

The authority reaffirmed its commitment to improving service delivery and strengthening revenue collection systems to support Zanzibar’s development agenda.