Tanzania’s tax authority has closed the first half of the 2025/26 financial year on a strong footing, collecting TZS18.77 trillion between July and December 2025 and surpassing its target by 3.7 percent, official figures show.
In a public statement issued on January 1, 2025, the Tanzania Revenue Authority (TRA) said the collections exceeded the TZS18.10 trillion target and marked a 13.6 percent increase compared with TZS16.52 trillion raised in the same period of the 2024/25 financial year, underscoring sustained improvements in tax administration and compliance.
The momentum was particularly evident in the second quarter of the financial year. Between October and December 2025, TRA collected TZS9.8 trillion against a target of TZS9.66 trillion, equivalent to 101.45 percent performance. The amount represents a year-on-year increase of TZS1.07 trillion, or 12.26 percent.
December 2025 stood out as a landmark month in the country’s revenue history, with collections reaching TZS4.13 trillion the highest monthly figure ever recorded. The amount eclipsed the previous record of TZS3.58 trillion set in December 2024.
On average, monthly collections during the July–December period reached Sh3.13 trillion, up from TZS2.75 trillion in the corresponding period last year.
TRA said it has now met or exceeded its monthly revenue targets for 18 consecutive months since July 2024, a feat the authority described as unprecedented.
The performance has been attributed to consistent implementation of government fiscal policies, strengthened enforcement, and improved taxpayer services under the leadership of President Samia Suluhu Hassan.
Taxpayer registration also continued to expand. By December 2025, the number of registered taxpayers had reached 7,683,290, reflecting a 7.3 percent increase from 7,163,362 recorded in June 2025.
To support operational efficiency, the authority trained 2,094 newly recruited staff during the period.
Additional revenue gains were realised through enhanced compliance measures and resolution of tax disputes.
Between October and December 2025, TRA concluded 42 tax settlements valued at Sh9.04 billion, while tax audits conducted between July and December resulted in the recovery of Sh483 billion.
Sectoral performance remained broad-based, with strong contributions from manufacturing, trade, mining, financial services, transport and communications.
Collections from excise duty increased by 12.9 percent, driven largely by higher revenues from beverages, fuel and postal services.
Based on the half-year performance, TRA said it remains on course to meet its annual revenue target of Sh36.06 trillion for the 2025/26 financial year.
The revenue-to-GDP ratio is projected to rise to 14.1 percent, from 13.7 percent recorded in 2024/25. Further reforms are also in the pipeline, including the rollout of the Integrated Domestic Revenue Administration System (IDRAS) starting in 2026 to modernise tax collection and administration.
In its New Year message, the TRA Board of Directors, management and staff extended greetings to Tanzanians and reaffirmed their commitment to supporting national development efforts, calling for continued cooperation between the authority and taxpayers in building a resilient economy.