ZRA revenue rises by over 20pc
ZANZIBAR: THE Zanzibar Revenue Authority (ZRA) collected 90.87bn/- in tax revenue in December 2025, surpassing its target of 90.52bn/- and achieving a performance rate of 100.39 per cent.
In a press statement issued yesterday, ZRA said the strong outturn was driven by increased economic activity and improved voluntary tax compliance among taxpayers.
According to the statement signed by ZRA’s Head of Public Relations and Customer Service, Mr Makame Khamis Mohammed, the December collections represented a 20.23 per cent increase compared to the 75.58bn/- collected during the same month in the previous financial year, 2024/2025.
“The strong performance reflects sustained economic growth, improved tax compliance and effective revenue administration reforms,” he said.
During the second quarter of the 2025/2026 financial year, covering the period from October to December 2025, ZRA collected a total of 273.77bn/- against a target of 286.81bn/-, equivalent to 95.45 per cent of the projected revenue.
The amount collected during the quarter marked an increase of 45.67bn/-, or 20.02 per cent, compared to revenue collected in the corresponding quarter of the 2024/2025 financial year.
Monthly collections during the quarter showed steady performance, with 91.61bn/- collected in October, 91.29bn/- in November and 90.87bn/- in December.
ZRA attributed the improved revenue performance to several factors, including the expansion of economic activities between Zanzibar and Mainland Tanzania, supported by improved business policies.
Increased investment in infrastructure and social services in Zanzibar was also cited as a key contributor to the growth in revenue.
Other factors include enhanced taxpayer education programmes, which increased awareness and compliance, as well as improved voluntary tax payment following visible government investment in public services funded through tax revenues.
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The authority also pointed to the implementation of a tax amnesty programme, which waived penalties and interest on long-standing tax arrears, encouraging taxpayers to clear outstanding obligations.
In addition, strengthened cooperation between ZRA and other institutions, including the Tanzania Revenue Authority (TRA), alongside improved relations with the business community, contributed to the positive performance.
Looking ahead, ZRA said it will intensify revenue collection efforts during the third quarter of the 2025/2026 financial year, covering January to March 2026.
Planned measures include accelerating the integration of business systems with the Electronic Fiscal Device and Virtual Fiscal Management Systems, deploying mobile tax service camps in commercial areas, promoting voluntary compliance and enforcing the law against persistent defaulters.
The authority also said it will closely monitor government development projects to ensure accurate tax assessment and collection.
ZRA expressed appreciation to taxpayers for their cooperation and voluntary compliance during the second quarter and throughout 2025, calling for continued partnership in 2026 to support social services and national development.
