.jpg)
The government is pushing public institutions to close loopholes in non-tax revenue collection after missing its annual target in the 2025/26 financial year, with officials warning that weak systems and poor oversight could deny the country money needed for public services and development projects.
Deputy Permanent Secretary in the Ministry of Finance Elijah Mwandumbya said institutions must improve the collection, recording and monitoring of revenue to ensure that all money due to the government reaches official accounts.
He said increasing fees and charges or introducing new revenue sources would not be enough if institutions failed to collect money already owed to the State.
“Every shilling that should be collected by the government must enter official systems. We need to strengthen revenue management and monitoring to prevent the loss of funds that are essential for implementing government plans and delivering services to citizens,” he said in Dodoma.
Mr Mwandumbya was speaking at a meeting of technical officials from government institutions responsible for collecting non-tax revenue.
The meeting reviewed collection performance, implementation challenges and measures to improve revenue management.
The push comes as the government seeks to sustain recent growth in non-tax revenue while addressing gaps in collection performance across public institutions.
Between July and August in the 2026/27 financial year, the government collected TZS1.06 trillion in non-tax revenue, exceeding the target for the period by 14.7 per cent.
The collections were 34.4 per cent higher than those recorded during the corresponding period in 2025.
However, the previous financial year's performance shows the scale of the challenge.
The government collected TZS4.3175 trillion in non-tax revenue in 2025/26 against a target of TZS4.682 trillion, achieving 92.2 per cent of the goal.
The shortfall was TZS364.5 billion, highlighting the need to improve collection systems and ensure that revenue-generating institutions meet their responsibilities.
Mr Mwandumbya said collection performance differed significantly among institutions, with some contributing substantially to government revenue while others recorded relatively low collections.
He urged institutions with weaker performance to review their strategies, identify untapped revenue sources and learn from those achieving better results.
But he cautioned that efforts to increase collections should take account of prevailing economic conditions and protect citizens' ability to engage in legitimate economic activities.
“The goal is not only to increase revenue, but also to ensure that no money due to the government is lost because of weak systems or inadequate supervision,” he said.
For citizens and businesses, effective revenue administration is important because money collected by the government helps finance public services and development projects.
Improving compliance and reducing leakages could strengthen public finances without necessarily depending on additional charges.
Director of Planning at the Ministry of Finance Amoury Amoury said the meeting was intended to assess the implementation of previous resolutions and examine trends in collections and the registration of revenue sources.
He said participants would develop recommendations to improve the management of existing sources, identify additional opportunities and strengthen compliance with revenue registration procedures.
Digital payments are also part of the government's efforts to improve collection and accountability.
Director of Financial Management Systems and Information Technology at the ministry, Dr John Sausi, said the government was improving digital systems, including the Control Number platform, to make payments for public services more efficient and easier to track.
However, he identified delays in reconciling transactions and technical problems affecting banking systems as challenges that could undermine the effectiveness of the platforms.
He urged government institutions to verify transactions and account information promptly, while strengthening cooperation with banks and other system operators to ensure that payments are properly recorded.
The meeting is part of preparations for a wider working session involving accounting officers from institutions responsible for non-tax revenue.
The session is expected to assess performance in 2025/26 and review strategies for achieving the current financial year's targets.
The effectiveness of the initiative will ultimately depend on whether institutions translate the recommendations into measurable improvements, with clear responsibilities, timely transaction reconciliation and stronger oversight of collections.
While the latest figures indicate improved performance, sustaining that growth and addressing the previous year's shortfall will be critical to ensuring that government revenue targets are supported by efficient collection rather than simply higher charges on citizens and businesses.