THE use of digital systems continues to transform revenue collection in Tanzania, as the government intensifies efforts to expand the tax base and seal revenue leakages.

In the first quarter of the 2025/2026 financial year, the Tanzania Revenue Authority (TRA) collected TZS 8.97 trillion, representing an increase of more than 15 percent compared to the same period in 2024 and exceeding the target by over 6 percent.

These achievements are largely attributed to the adoption of modern systems such as Electronic Tax Stamps (ETS), which have strengthened the tracking of excisable goods from production to the point of sale.

Since the introduction of ETS in 2016, excise duty collections on stamped products have increased by more than 94 percent, helping to curb counterfeit goods and improve tax compliance among manufacturers and traders.

Additionally, the Fuel Marking Programme has enhanced integrity in the petroleum sector by combating adulteration, smuggling and tax revenue losses, with EWURA reporting compliance levels exceeding 96 percent.

Mobile laboratories used in fuel inspections have enabled rapid verification of product quality and authenticity, protecting consumers, the environment and government revenues simultaneously.

Through the use of data analytics and digital intelligence, TRA has strengthened targeted audits in high-risk areas, reduced operational costs and improved efficiency in recovering lost revenues.

Overall, digital transformation continues to demonstrate that technology is a critical tool for building a robust tax system, protecting compliant businesses and strengthening national revenue for Tanzania’s sustainable development.