ZRA surpasses revenue collection target for August
ZANZIBAR: THE Zanzibar Revenue Authority (ZRA) collected 71.1bn/- in August 2024, surpassing its 69.5bn/- target, marking a collection rate of 102.34 per cent.
This was disclosed by Acting ZRA Commissioner Said Ali Mohamed, at a press conference held in Zanzibar on Tuesday.
Mr Mohamed said the revenue collected in August, the first month of the 2024/25 fiscal year, significantly exceeded the amount collected in the same month of the previous year (2023/24), which was 57.2bn/-.
This represents a substantial increase of 13.88bn/-, or 24.24 per cent.
“The August 2024 collection reflects a notable improvement compared to August 2023/24.
This success is driven by increasing economic activities within Zanzibar and enhanced trade between Zanzibar and mainland Tanzania,” Mr Mohamed said.
He attributed the performance to several factors, including effective government policies, improved tax education, strict enforcement of tax laws and the leadership of President Samia Suluhu Hassan, which has strengthened the business environment across both sides of the Union.
Mr Mohamed further explained that the strong economic policies of the eighth-phase government, led by Dr Hussein Ali Mwinyi, have attracted significant investments, particularly in the construction and infrastructure sectors, as well as improved social services.
This has played a key role in boosting economic activities and consequently, tax revenue.
“The amendment of tax laws for the 2024/2025 financial year has also contributed to better collection of value-added tax (VAT), excise duties, port fees and infrastructure taxes,” he noted.
He further highlighted the importance of collaboration between various ministries and institutions, such as the Tanzania Revenue Authority (TRA) and the Tourism Commission, in helping ZRA achieve its goals.
Positive relations between ZRA and the business community have also contributed to the strong revenue performance.
Looking ahead, Mr Mohamed outlined ZRA’s plans to further strengthen tax collection in September by enhancing the Zanzibar Integrated Domestic Revenue Administration System (ZIDRAS) and collaborating with other institutions to ensure accurate taxpayer information.
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He also stressed the importance of conducting inspection visits to resolve tax-related challenges and disputes in a timely manner.
Mr Mohamed issued a stern warning to businesses attempting to evade taxes, stating that those caught would face penalties, including paying the owed differences and fines based on the level of loss caused.
