ZANZIBAR authorities affirm that Tanzania Revenue Authority (TRA) collections in the Isles exceeded its target for the 2024/25 financial year, collecting 825bn/- against the 600bn/- set target.

Dr Saada Mkuya Salum, the Finance and Planning minister, issued this affirmation at a Treasury performance review meeting here at the weekend, describing the success as a clear sign of improved tax compliance and a reliable tax base uplifting government priorities.

The higher collections will help pave the way for accelerating implementation of development projects across the Isles, she said,noting that Zanzibar is currently implementing numerous infrastructure projects, all made possible by domestic tax revenues.

She expressed support for the prime minister’s call for visible signage at such projects to remind citizens of the power of tax contributions, asserting that it is a strong motivation for sustained compliance.

Yusuph Mwenda, the TRA commissioner general, confirmed that the strong result was made possible by growing voluntary compliance and strategic collection efforts.

Buoyed by the achievement, TRA has now set an even more ambitious goal to collect 1trn/- in the 2025/26 financial year, a figure that exceeds government expectations ast the moment, he said. 

TRA was confident that the milestone is achievable through widening the tax base rather than increases in chargeable tax rates, he said, underlining the need to ensure that everyone eligible contributes fairly and that illicit trade is curtailed.

“We are shifting our focus from raising rates to reaching those who have remained outside the formal tax system,” he specified, with Mcha Haji Mcha, the deputy commissioner general for Zanzibar asserting that the new target represents a monthly average increase of  14.8bn/-, altogether making nearly 30 percent of total income projected at 2.7trn/- for fiscal 2025/26. 

The minister called on TRA staff to embrace innovation in line with the evolving economy. “Much of today’s economic activity takes place online,” she said, urging that the tax collection systems must follow that trend.

TRA needs to develop new, citizen-friendly revenue streams, she elaborated, hailing TRA’s taxpayer education efforts as having enhanced awareness and acceptance of taxation.

Encouraging closer relationships with taxpayers to build a culture of voluntary compliance, she said that TRA’s strategic shift needs to target high-potential sectors such as tourism and digital commerce.

These sources are expected will play a significant role in meeting the 1trn/- mark, she said, while the TRA CEO expressed appreciation for the business community and citizens for higher compliance and harmonious relations with TRA. They are essential partners in national development, he stated.

TRA Zanzibar’s performance comes as the Isles authorities expand infrastructure, improve public services and strengthen fiscal sustainability—key pillars of the government’s broader development agenda, analysts noted.