Strengthened enforcement and closer cooperation between public institutions have significantly improved revenue collection in Kibaha Municipality, after authorities managed to recover and safeguard more than TZS 1.6 billion that had been lost through tax evasion practices.
The breakthrough follows joint efforts between the Prevention and Combating of Corruption Bureau (PCCB) Pwani Region and the Kibaha Municipal Council, aimed at plugging loopholes in local revenue systems and improving accountability in service levy collection.
Speaking to journalists while presenting the bureau’s performance report for the period January to March 2026, PCCB Pwani Deputy Regional Director, Ezekia Sinkara, said the interventions were triggered by monitoring exercises that exposed widespread tax avoidance practices among some business operators.
He said investigations revealed that some traders were deliberately manipulating sales records to reduce the amount of tax payable to the government, including deleting or altering Electronic Fiscal Device (EFD) receipts after transactions had already taken place.
“Some business operators were conducting their activities without issuing EFD receipts, particularly in wholesale businesses and those dealing with industrial goods,” Sinkara said.
He added that further findings showed that some companies were engaging in internal pricing adjustments between parent firms and branch outlets, a strategy that lowered reported sales and reduced tax obligations to the municipality.
Sinkara noted that such practices had been contributing to significant revenue losses, limiting the ability of the local government to fund development projects and public services.
However, he said the situation has improved following coordinated enforcement measures between PCCB and the Kibaha Municipal Director’s office, which have tightened oversight on business operations and strengthened compliance.
As a result, revenue collection in the municipality has shown steady improvement. In the first quarter of the 2025/2026 financial year, Kibaha collected TZS 1.5 billion, rising to TZS 1.8 billion in the second quarter, and TZS 1.6 billion in the third quarter.
The third-quarter collection process is still ongoing, bringing total collections so far to approximately TZS 4.9 billion.
Sinkara emphasized that PCCB will continue working closely with government institutions to close all remaining loopholes that allow loss of public revenue.
He warned that individuals and businesses engaging in tax evasion and other corrupt practices will face legal action, stressing that stronger enforcement is essential to protect public funds and ensure fair contribution from all taxpayers.
The joint initiative is part of broader national efforts to strengthen transparency, improve revenue systems, and ensure that every shilling collected is used to support development priorities at local and national levels.
