ZRA beats March tax target by 9pc

ZANZIBAR: THE Zanzibar Revenue Authority (ZRA) has exceeded its revenue collection target for March 2026 by nine per cent, reflecting improved economic activity, rising taxpayer compliance and growth in the tourism sector.

According to a statement issued on April 2, 2026 by the Head of Information, Public Relations and Taxpayer Services, Mr Makame Khamis Mohammed, the authority collected 100.606bn/- in March against a target of 92.292bn/-, achieving a performance rate of 109.01 per cent.

The figure also represents a significant increase compared to 73.75bn/- collected in March during the 2024/2025 financial year, marking a rise of 26.856bn/-, equivalent to 36.42 per cent.

For the third quarter of the 2025/2026 financial year (January to March), ZRA collected a total of 320.480bn/- against a target of 344.633bn/-, averaging about 106bn/- per month. This reflects an increase of 81.734bn/-, or 34.23 per cent, compared to the same period in the previous financial year.

ZRA attributed the strong March performance to increased investment in infrastructure and social services, alongside improved economic activity under the leadership of Zanzibar President Dr Hussein Mwinyi.

The authority also cited enhanced trade between Zanzibar and Mainland Tanzania, supported by policies under President Samia Suluhu Hassan, which have strengthened the business environment across the Union.

Other contributing factors include improved voluntary tax compliance following taxpayer education campaigns such as “ZRA Mtaani Kwako”, integration of business and tax systems, particularly in the tourism sector and an increase in newly registered taxpayers, including international businesses operating in Zanzibar.

ZRA further noted that growing tourist arrivals, supported by a stable environment and improved investment climate, have also boosted revenue collection.

Looking ahead, the authority outlined key strategies for the fourth quarter (April to June 2026), including accelerating integration of taxpayer business systems with ZRA platforms, expanding outreach services closer to business communities and strengthening audits of selected taxpayers.

Additional measures include close monitoring of ongoing government projects to ensure proper tax collection, as well as intensifying compliance campaigns while taking enforcement action against non-compliant taxpayers.

ZRA thanked taxpayers for their continued cooperation and voluntary compliance, urging all businesses using digital systems to complete integration with ZRA systems by April 2026 to support efficient tax administration.

“Pay tax for Zanzibar’s development,” the authority stressed.