Tanzania Revenue Authority to Reach Tax Collection Target for 2015-2016 Thanks to Improved Collection Mechanisms

The Tanzania Revenue Authority (TRA) recently announced its confidence in reaching its tax collection target for the financial year 2015-2016 of TZS 12.3 trillion.

The announcement was made by TRA’s Commissioner General Mr. Alphayo Kidata, who explained that the authority was able to collect 99% of its tax revenues target for the last 9 months, set at TZS 9.98 trillion.

Kidata also mentioned that TRA reached a tax surplus during March 2016, collecting TZS 1.32 trillion against a target of TZS 1.30 trillion, thanks to more efficient collection mechanisms.

Since his appointment as the 5th President of Tanzania in November 2015, Dr. John Magufuli and his government have started a crusade on tax evasion.

The same month he sworn in he suspended TRA’s Commissioner General at the time Mr. Rished Bade, together with 5 other TRA’s top executives, following an investigation about TZS 80 billion in taxes for the importation of some 349 containers that went missing.

The current crack down on tax evasion by TRA is in line with an earlier speech by Tanzania’s former Minister of Finance, Hon. Saada Mkuya Salum, during the presentation of Tanzania’s National Budget for 2015-2016.

“Currently, total tax revenue collection is approximately 12 % of GDP, which is lower compared to most neighboring countries. There is room for increase in tax revenue. In order to achieve this, The Ministry of Finance will sign performance contracts with TRA’s senior staff, with a view to ensure that revenue collection target is achieved. Further, the Government will strengthen efforts to avert tax evasion through enforcing the use of Electronic Fiscal Devices (EFDs) in all business transactions”, she said.