Tanzania breaks tax record: TZS 16.5T collected in six months of 2024

By Respondent Reporter
Tanzania’s Minister of Finance, Dr. Mwigulu Lameck Nchemba, has applauded the Tanzania Revenue Authority (TRA) for achieving a historic surge in tax collections.

Over two fiscal years, revenues grew from TZS 22.2 trillion in 2021/22 to TZS 27.6 trillion in 2023/24. Additionally, TRA set a record by collecting TZS 16.528 trillion in the first half of the 2024/25 fiscal year (July to December 2024).

Speaking during the opening of a five-day performance review meeting held at the Arusha International Conference Center (AICC), Dr. Nchemba emphasized the transformative impact of these revenues.

He highlighted how the funds have bolstered the government's ability to execute strategic projects aimed at enhancing public services, including the Julius Nyerere Hydropower Project, the Standard Gauge Railway (SGR), road infrastructure, and other key development initiatives.

The minister urged TRA to intensify the use of modern electronic revenue collection systems to improve transparency, efficiency, and accountability while minimizing unnecessary face-to-face interactions between tax officials and taxpayers, which often breed corruption.

In a progressive move, Dr. Nchemba reiterated his stance against shutting down businesses for unpaid taxes. Instead, he called for mechanisms to nurture such businesses while ensuring tax compliance.

He noted that closing businesses disrupts the economy, derails growth, and exacerbates unemployment and poverty.

Dr. Nchemba also appealed to business owners to fulfill their tax obligations and fully utilize electronic fiscal devices (EFDs) to issue proper receipts that reflect the value of transactions. At the same time, he urged consumers to demand valid receipts to strengthen accountability.

TRA Commissioner General Yusuph Juma Mwenda reaffirmed the agency's commitment to meeting the government’s ambitious revenue target of TZS 30.449 trillion for the 2024/25 fiscal year.

He expressed confidence, citing the remarkable TZS 16.528 trillion collected by December 2024—a 78.78% increase compared to TZS 9.242 trillion collected during the same period in the 2020/21 fiscal year.

Mwenda attributed this success to TRA's initiatives, including fostering voluntary tax compliance, addressing taxpayers' concerns, and enhancing collaboration with business associations.

He credited President Samia Suluhu Hassan for her directive to improve the business environment and tax compliance landscape, which has cultivated mutual trust between TRA and taxpayers.

He encouraged TRA staff to maintain professionalism, diligence, and integrity in their duties while assuring that the government would continue providing the resources and tools necessary to support their work.

This performance, anchored by reforms and collaborative efforts, signals a transformative era for Tanzania’s tax administration, setting the stage for sustained economic growth and development.

 

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