Tanzania’s Prime Minister, Kassim Majaliwa, has urged the Tanzania Revenue Authority (TRA) to intensify its supervision of tax collection, especially focusing on businesses both local and foreign operating within the country.
Speaking at a leadership meeting of TRA officials held at the Arusha International Conference Centre (AICC), Majaliwa emphasised the need for robust enforcement of tax laws and regular audits to ensure compliance.
“Those conducting business here must comply with Tanzania’s tax laws,” he said. “We must investigate businesses that operate in the country but fail to pay their fair share of taxes. Just as Tanzanian businesses face scrutiny abroad, foreign companies must respect our legal frameworks.”
The Prime Minister praised TRA for exceeding its revenue collection target in the 2024/2025 financial year, achieving TSh 32.26 trillion 103.9% of the targeted TSh 31.05 trillion.
He described the accomplishment as historic and a sign of the authority’s dedication and professionalism.
Majaliwa further called on the Ministry of Finance to continue reviewing tax policies, laws, and systems to expand the tax base without harming economic activities.
“The innovative approaches TRA has adopted have yielded impressive results. These efforts should be sustained and developed further, with a strong focus on lawfulness, good governance, and respect for taxpayers,” he added.
Finance Minister Dr Mwigulu Nchemba highlighted the importance of public awareness on tax matters, noting that many Tanzanians mistakenly believe development funds originate from the central bank.
“We must educate citizens that the infrastructure and services they see such as roads, schools, and hospitals are funded by their taxes. Even borrowed money is repaid from tax revenue,” said Dr Nchemba.
TRA Commissioner General Yusuph Mwenda revealed that during the last financial year, the authority refunded more than TSh 1.2 trillion to taxpayers the highest ever in its history. This move was intended to support businesses and maintain liquidity in the market.
Looking ahead, TRA aims to collect TSh 36 trillion in the current financial year. Mwenda expressed confidence that this target would be met through strong cooperation between taxpayers and government leadership.
The TRA leadership meeting provided a platform for reviewing past performance and strategising on enhancing tax administration, aligned with Tanzania’s wider economic development goals.