The Minister of Finance, Khamis Mussa Omar, has directed the Tanzania Revenue Authority (TRA) to strengthen its capacity to mobilise domestic resources in order to support the implementation of the country’s long-term development blueprint, Tanzania Development Vision 2050.
The minister issued the directive during a working visit to the authority where he met with the TRA Board of Directors and management in Dar es Salaam.
The visit marked his first official engagement with the institution since his recent appointment by President Samia Suluhu Hassan.
During the meeting, Ambassador Omar emphasised that effective domestic revenue mobilisation will be central to the successful implementation of the national vision, which aims to transform Tanzania into a high-income and competitive economy by 2050.
He explained that the country’s previous national development vision targeted a Gross Domestic Product (GDP) of about $90 billion by 2025.
However, the new projections under Vision 2050 set a far more ambitious target, with Tanzania expected to reach an economy worth approximately $1 trillion by 2050.
The minister said achieving such an ambitious economic milestone will require strong institutions capable of generating sustainable financial resources from within the country.
He therefore instructed TRA to strategically position itself to ensure domestic revenue contributes significantly toward financing development activities.
According to the minister, tax revenue is expected to contribute about 70 percent of the resources required to support the implementation of the national development agenda.
“TRA must prepare itself to support the implementation of Vision 2050 by strengthening revenue collection systems and ensuring that the country mobilises sufficient domestic resources to finance development priorities,” he said.
Ambassador Omar also commended the revenue authority for improving its engagement with taxpayers, noting that constructive relationships between tax administrators and taxpayers are essential in promoting voluntary tax compliance.
He encouraged the authority to maintain and strengthen initiatives that support voluntary tax payment, saying that trust between taxpayers and the tax administration plays a key role in expanding the tax base and improving revenue collection.
The minister noted that taxpayers remain key partners in national development and that creating a supportive tax environment can help increase compliance while sustaining business growth.
At the same time, he urged TRA to intensify efforts to combat tax evasion and other dishonest practices that undermine government revenue.
Among the challenges he highlighted are cases where traders import goods into Tanzania claiming they are in transit to other countries, only for the goods to be diverted into the domestic market without payment of the required taxes.
He also pointed to manipulation of international trade prices, commonly known as transfer pricing, which allows some businesses to reduce their tax obligations by under-declaring the true value of transactions.
Such practices, the minister said, undermine fair competition and limit the government’s ability to mobilise revenue needed for economic development.
“Addressing tax evasion and closing revenue leakages must remain a priority if we want to achieve our long-term development goals,” he said.
Responding to the minister’s directives, the Commissioner General of the Tanzania Revenue Authority, Yusuph Juma Mwenda, assured the government that the authority is committed to supporting the implementation of Vision 2050.
He said TRA is already implementing measures aimed at improving efficiency in tax administration, including strengthening customs operations and domestic tax collection systems.
According to Mwenda, the authority is focusing on improving digital systems, enhancing monitoring mechanisms and expanding the tax base to ensure sustainable revenue growth.
“We are committed to strengthening tax administration and ensuring that TRA plays a key role in supporting the country’s long-term development vision,” he said.
Meanwhile, the chairman of the TRA Board of Directors, Uledi Abass Mussa, reaffirmed the board’s commitment to ensuring the authority continues to improve its performance in revenue collection.
He said the board will continue providing strategic guidance to strengthen revenue mobilisation and support the country’s development priorities.
The government considers domestic revenue mobilisation a key pillar in financing national development programmes, reducing reliance on external funding and strengthening Tanzania’s economic independence.
With the implementation of Tanzania Development Vision 2050 expected to shape the country’s development trajectory over the next decades, institutions responsible for revenue collection such as the Tanzania Revenue Authority are expected to play a central role in ensuring that Tanzania secures the financial resources needed to support infrastructure development, industrialisation and social services.