By Alfred Zacharia
The Commissioner General of the Tanzania Revenue Authority (TRA), Mr. Yusuph Juma Mwenda, conducted an unannounced inspection on May 17, 2025, at several factories located in Mkuranga District, Coast Region, and uncovered widespread tax evasion by factory owners.
During the surprise visit, Mr. Mwenda inspected a plastic shoe manufacturing facility operated by DOLIN Investment Company Ltd, known for producing "Yeboyebo" shoes, as well as a steel bar production plant owned by Fujian Hexingwang Industry Tanzania Ltd. Both factories are operated by foreign investors.
Following his findings, Mr. Mwenda stated that TRA will launch a comprehensive investigation to determine the full extent of the tax evasion. Any unpaid taxes will be collected in full, along with applicable interest and penalties.
"We received credible reports from whistleblowers and TRA staff regarding possible tax evasion at these facilities. Upon inspection, we confirmed the existence of these irregularities," said Mr. Mwenda. "All outstanding tax liabilities must be settled, including interest and fines."
TRA officers will be stationed at the factories for a period of one month to carry out a thorough audit and valuation exercise to establish the accurate amount of tax due.
Mr. Mwenda also issued a strong warning to other businesses engaging in tax evasion, urging them to come forward voluntarily.
"Tax evasion has serious consequences, and in the end, the tax must be paid. Evading taxes only delays the inevitable."he added
Despite the violations, the Commissioner General commended the investors for their significant contributions to the Tanzanian economy and for creating employment opportunities for local citizens.