The Tanzania Revenue Authority (TRA) collected TZS 1.767 trillion in taxes in September 2019, the highest amount it has ever collected since its inception in 1996.
The amount corresponds to 97.2% of the TZS 1.817 trillion collection target for the month, and it is 29% higher than the taxes collected in September 2018.
Similarly, in July and August 2019, TRA met its collection targets by 91.92% and 96%, with TZS 1.256 trillion and TZS 1.335 trillion in tax revenues.
Speaking to the media, TRA Commissioner General Dr. Edwin Mhede explained that to reach the record the agency focused on fixing tax loopholes, and on the use of Electronic Fiscal Device (EFD) machines.
He also underlined the role of educating taxpayers who “now have proper knowledge on tax issues and have agreed to comply to raise domestic revenues to finance several development projects.”
Under President Magufuli’s administration, the country has made tax collection a priority.
However, Tanzania’s domestic revenue effort remains chronically below its budget targets.
The World Bank (WB) indicates in its 12th Tanzania Economic Update of July 2019 that tax collection underperformed in all departments – domestic revenue, large taxpayers, and customs and excise – which is partly due to unrealistic high targets.