The government has launched a three-year Medium-Term Revenue Strategy (MTRS) designed to strengthen tax compliance, close revenue leakages, and reduce the country’s reliance on external financing.
The strategy, which will run from 2025/26 to 2027/28, was unveiled by the Permanent Secretary in the Ministry of Finance, Dr. Natu El-maamry Mwamba, during a ceremony at Treasury Square in Dodoma.
Dr. Mwamba said the MTRS will provide predictability in revenue policy, improve fiscal discipline, and build stronger public trust in government financing.
“Effective implementation of this strategy will enhance revenue administration and ensure we maintain a sustainable budget that allows the government to scale up delivery of essential services using domestic resources,” she said.
The reforms outlined in the MTRS fall under three broad categories: policy measures, administrative improvements, and legal adjustments.
The framework emphasizes the introduction of a national tax policy, enhanced use of digital systems in revenue collection, and improved oversight of exemptions, returns, customs procedures, and the digital economy.
According to Dr. Mwamba, the strategy is expected to increase voluntary compliance, broaden the tax base, and strengthen investment confidence by creating a more transparent and predictable revenue environment.
Commissioner for Policy Management at the Ministry of Finance, Dr. Johnson Nyella, noted that the strategy was developed through wide consultations with local experts and technical support from the International Monetary Fund (IMF).
He stressed its importance in bridging budget deficits and financing national development projects without overreliance on external debt.
“Tanzania’s transition from a low-income to a middle-income economy requires greater self-reliance. This strategy is an essential tool for achieving that goal,” Dr. Nyella said.
The steering and implementation committees for the MTRS will be chaired by the Treasury Permanent Secretary, with membership drawn from government institutions, regulatory agencies, and the private sector.
The committees include senior officials from key ministries, the Bank of Tanzania, the Tanzania Revenue Authority (TRA), and representatives of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and the Tanzania Private Sector Foundation (TPSF).
The Ministry of Finance highlighted that similar frameworks have been successfully implemented in countries such as Kenya, Uganda, Malawi, Sierra Leone, Ghana, Morocco, and Rwanda.
Officials expressed confidence that Tanzania’s MTRS will provide a robust foundation for sustainable revenue mobilization and long-term economic stability.