The Tanzania Revenue Authority (TRA) in Zanzibar has collected 88 percent of its revenue target in the first quarter of the 2026/27 financial year, leaving a shortfall of TZS29.3 billion that the government wants addressed through tighter customs controls and improved monitoring of trade activities.
Finance Minister Ambassador Khamis Mussa Omar said the authority needed to strengthen revenue collection strategies, improve the accuracy of trade statistics and work more closely with business stakeholders to meet its annual targets.
During a visit to TRA offices in Zanzibar, Ambassador Omar said the authority had collected TZS216.3 billion against a quarterly target of TZS245.6 billion.
The performance represents a shortfall of about 12 percent, raising questions about the measures needed to improve collections during the remaining nine months of the financial year.
The minister said the visit was intended to assess revenue performance, identify operational challenges and discuss opportunities for improving collection.
He singled out customs administration as an area requiring greater attention, particularly the inspection and valuation of imported goods and verification of import and export documentation.
"Detailed analysis of revenue collection trends is important in identifying changes in trade and the factors contributing to increases or declines in revenue," he said.
He said TRA needed to examine the types, quantities and values of goods entering Zanzibar, alongside changes in economic activities and development projects, to understand movements in revenue collections.
Ambassador Omar also called for closer cooperation between TRA and the Zanzibar Ports Corporation (ZPC), particularly in reconciling cargo statistics with tax collection records.
Accurate information on the volume and value of goods passing through ports would help identify possible gaps between recorded trade activities and revenue collected, while enabling the government to make better-informed decisions.
The minister said stronger coordination between the two institutions was necessary to improve transparency and the effectiveness of customs operations.
He also called for clear performance indicators for tax consultants and clearing and forwarding agents, arguing that their responsibilities within the tax administration system should be matched with accountability.
On tax disputes, he urged TRA to speed up the resolution of long-standing cases, saying delays could complicate tax payments and undermine service delivery to taxpayers.
The push for improved collection comes as Zanzibar's revenue authority faces an annual target of TZS1.144 trillion, equivalent to 34 percent of the Zanzibar Government's projected tax and non-tax revenue under its budget.
TRA Deputy Commissioner General Mcha Hassan Mcha said the authority would implement the government's directives and intensify efforts to achieve the target.
He said revenue collection was critical to financing development activities and supporting the government's spending priorities.
For the government, improving revenue performance is important because tax collections provide resources for public services and infrastructure without relying entirely on borrowing or other financing sources.
Ambassador Omar said government revenue was needed to finance healthcare, salaries and other development requirements, urging TRA to make greater use of technology, data and cooperation with stakeholders.
"Government relies on collected revenue to finance essential services for citizens, including healthcare, salaries and other development needs," he said.
The challenge for TRA will be to increase collections while improving efficiency in tax administration, particularly by addressing weaknesses in customs controls and resolving disputes without creating unnecessary delays for legitimate businesses.
Meeting the annual target will require sustained improvements beyond the first-quarter performance, as the authority seeks to turn the government's revenue expectations into resources for Zanzibar's development priorities.