Tanzania Revenue Authority (TRA) collected TZS 8.97 trillion ($3.5 billion) in the first quarter of the 2024/25 fiscal year, exceeding its target of TZS 8.87 trillion, the authority said on Wednesday.
The collections mark a 15% year-on-year increase from the same period last year, supported by improved compliance and economic expansion in sectors such as services, manufacturing and trade.
September recorded the strongest monthly performance, with collections of TZS 3.31 trillion against a target of TZS 3.23 trillion, the highest ever achieved in a single month, according to TRA Commissioner General Yusufu Mwneda.
“This performance reflects growing confidence in our tax administration systems and the positive response from taxpayers,” Mwneda says in a press statement.
“We are seeing steady growth in domestic revenue, which is critical for financing government priorities without over-reliance on external borrowing,” he added.
Tanzania has set an ambitious target of TZS 32.4 trillion in tax revenue for the 2024/25 fiscal year, representing about 72% of the government’s TZS 44.4 trillion budget.
The government plans to use the funds to support infrastructure projects, education, healthcare, and agriculture, while narrowing the budget deficit projected at 2.8% of GDP.
The TRA has recently introduced digital systems to reduce leakages, including electronic fiscal devices and online tax filing.
It is also working to integrate more small businesses into the tax net.
Mwneda said the authority will continue to strengthen enforcement and taxpayer education to maintain growth in collections.
“Our focus is on building a fair and transparent tax regime that supports national development,” he added.
Tanzania’s economy is projected to grow by 5.3% in 2024, supported by public investment and improved business climate, according to the Ministry of Finance.
