MOIL Energies, a petroleum importation and distribution company in Tanzania, has expressed satisfaction with the new Bulk Importation Levy (BIL) system, saying it is improving tax collection, reducing loopholes, and making fuel distribution more transparent and efficient.
Speaking in Dar es Salaam, the company’s General Manager in Tanzania, Dr. Sajad Habib Rai, said the system has brought positive changes in the petroleum sector by ensuring that taxes are collected earlier before fuel reaches the market.
He said MOIL Energies was among the first companies to propose the introduction of the system to regulators, including the Energy and Water Utilities Regulatory Authority (EWURA) and the Petroleum Bulk Procurement Agency (PBPA), before it was later adopted and implemented by the Tanzania Revenue Authority (TRA).
Dr. Sajad said the company is pleased to see the system now fully in operation, noting that it reflects efforts to strengthen the fuel supply chain and ensure government revenue is protected.
He said the main goal was to reduce practices that previously allowed some traders to avoid or delay paying taxes.
He explained that under the new arrangement, importers are required to declare the exact quantity of fuel brought into the country and pay taxes before the fuel is released for sale. This has helped TRA collect revenue in a more organized and timely manner.
According to him, the system has reduced unfair practices such as under-declaring fuel volumes and delaying tax payments, which in the past contributed to government revenue losses. He added that compliant businesses are now able to compete fairly in the market.
The system also involves close coordination with the Tanzania Bureau of Standards (TBS), which helps in identifying and marking fuel imports.
This ensures that every shipment can be tracked and linked to the correct importer, improving monitoring and accountability in the supply chain.
Dr. Sajad said businesses that follow legal procedures have welcomed the reform, saying it brings fairness, predictability, and order in the petroleum sector.
He added that proper tax collection benefits both the government and businesses by creating a stable and reliable market environment.
The Tanzania Revenue Authority (TRA) recently confirmed full implementation of the system, saying it is part of wider reforms aimed at strengthening revenue collection and reducing losses in the fuel importation chain.
During a recent visit to fuel storage facilities in Dar es Salaam, TRA Commissioner General Yusuph Juma Mwenda said the new system is designed to improve tax administration while supporting businesses by removing unnecessary delays that previously affected operations.
He said TRA remains committed to ensuring importers and distributors receive timely services and that the system works efficiently for all stakeholders.
He also urged traders facing challenges to engage directly with TRA for quick resolution.
Commissioner Mwenda further announced that TRA has introduced a 24-hour service operation system to speed up clearance and support the fast-moving petroleum sector.
He said this will ensure fuel importers, distributors, and retailers are served without unnecessary delays.
Overall, stakeholders in the petroleum sector say the new system is a positive step toward improving transparency, increasing government revenue, and strengthening accountability in fuel distribution, ultimately benefiting both businesses and citizens through a more efficient fuel supply chain.
