A proposal by petroleum sector expert Sajad Habib Rai is helping the Government seal tax loopholes in the fuel trade, strengthening revenue collection and improving fairness in one of the country’s most strategic sectors.
Dr Rai, the Country Manager at MOIL Energies, says Tanzania has been fortunate not only for its natural wealth and tourism assets but also for strong leadership since independence.
He singles out President Samia Suluhu Hassan for creating a stable and attractive investment climate that continues to draw interest from foreign investors.
He argues that under the current administration, policy direction and administrative efficiency have improved, enabling key sectors such as energy to perform better and support broader economic growth.
With more than two decades of experience in procurement, logistics and petroleum trade, Dr Rai has built a reputation for linking private sector efficiency with public sector priorities. His recent contribution to tax administration in the fuel business stands out.
The reform idea is straightforward but impactful: require fuel importers to have their tax liabilities assessed and settled before products enter the domestic market.
Previously, gaps in the system allowed some traders to under-declare imports or delay tax payments, creating losses for the Government.
According to Dr Rai, the new approach has helped close those gaps and strengthened the ability of the Tanzania Revenue Authority to collect revenue more effectively.
It has also improved compliance levels among traders while promoting fair competition for those who follow the law.
Industry stakeholders say the system is gradually restoring discipline in the petroleum supply chain, an area that demands high levels of accountability due to its direct impact on the economy.
Dr Rai maintains that professionalism, transparency and strong coordination between the private sector and regulators are essential in managing the fuel business.
He has consistently supported reforms that enhance oversight while ensuring the sector remains efficient and responsive.
His contribution comes at a time when global fuel markets remain volatile due to geopolitical tensions, particularly in the Middle East.
Despite these pressures, he notes that Tanzania is relatively stable and has adequate fuel reserves to meet domestic demand.
Analysts view the reform as part of broader efforts to safeguard Government revenue, reduce inefficiencies and strengthen energy security.
The petroleum sector continues to play a central role in driving economic activities, making reforms that improve its management critical.
Dr Rai’s approach highlights how practical, industry-driven solutions can complement Government efforts, ensuring that growth in key sectors translates into tangible national benefits.
