By Charles Mkoka
Dar es Salaam – The Tanzania Revenue Authority (TRA) and the National Arts Council of Tanzania (BASATA) have formalized an agreement to exchange information and integrate systems aimed at streamlining the regulation and management of revenue generated by artists.
This collaboration, announced on December 24, 2024, in Dar es Salaam, seeks to identify tax-compliant and non-compliant artists, ensuring fairness and fostering growth in the creative industry.
Speaking at the event, TRA Commissioner General Yusuph Mwenda emphasized that the new systems will play a crucial role in identifying artists and enhancing their economic well-being.
He stated that these measures are designed to support artists while also ensuring their compliance with tax regulations.
Mwenda highlighted the importance of the creative sector in driving national economic growth, noting that artists who earn less than TZS 170,000 per month will be exempt from paying taxes.
Additionally, those earning higher amounts will only contribute modestly based on their income levels.
Mwenda detailed that artists starting companies with monthly earnings below TZS 4 million will not be taxed, while those earning TZS 7 million annually will pay TZS 100,000 per month.
Artists with earnings between TZS 7 million and TZS 11 million annually will contribute TZS 250,000 monthly, and those earning between TZS 11 million and TZS 100 million monthly will pay 3.5% of their income. These measures aim to balance tax compliance with financial relief, ensuring that artists are not overburdened.
The Commissioner General also emphasized that the agreement enables seamless integration between TRA and Basata systems, making it easier to register artists and provide them with Taxpayer Identification Numbers (TIN).
Mwenda announced plans to offer training to artists, helping them understand basic tax concepts and encouraging them to act as TRA ambassadors, spreading awareness about the importance of tax compliance.
Basata Executive Secretary, Dr. Kedmon Mapana, praised the initiative as a transformative step for the arts sector.
He expressed confidence that the agreement will drive growth for both emerging and established artists, allowing them to focus on their creative work without unnecessary administrative burdens.
Dr. Mapana stressed that the new system simplifies tax payments, empowering artists to contribute to the national economy while benefiting from government support.
The partnership aligns with President Samia Suluhu Hassan’s directive for government institutions to harmonize their systems and share information seamlessly.
Current statistics reveal that the creative industry has been a key economic driver, recording growth rates of 17.7% in 2023-24 and 19% in 2022-23, even before the formalization of these systems.
The agreement between TRA and BASATA marks a significant milestone in the formalization and advancement of Tanzania’s arts sector, ensuring it continues to thrive and contribute meaningfully to the country’s economy.