Small traders and entrepreneurs will now be formally incorporated into the national tax system following changes introduced under the Finance Act of 2025.
The new law removes the responsibility of issuing identification cards from the Tanzania Revenue Authority (TRA) and transfers it to other institutions such as the Ministry of Community Development, Gender, Women, and Special Groups.
TRA will, however, work jointly with these institutions to identify traders and entrepreneurs and provide them with Taxpayer Identification Numbers (TINs).
TRA’s Taxpayer Education Manager, CPA Walalaze, made the remarks yesterday during a seminar on tax law reforms for the 2025/26 financial year, held in Sumbawanga Municipality, Rukwa Region.
He said the reforms are designed to expand the tax base by bringing small-scale businesses into the formal economy.
According to him, entrepreneurs whose annual gross turnover reaches Sh4 million will now be required to pay income tax.
“The Finance Act has also empowered the responsible minister to issue regulations that will guide the supervision of these entrepreneurs,” he added.
The government says the reforms are expected to strengthen revenue collection while creating a more organized system for supporting small traders and entrepreneurs across the country.