The Tanzania Revenue Authority (TRA) has exceeded its revenue target by five percent, collecting 12.33trn/- from July to November.

Yusuf Mwenda, the TRA commissioner general, made this assertion at a meeting with members of the Budget Committee of the National Assembly, in Dar es Salaam yesterday, which included a training session on the authority’s operations.

 This marks a 19 percent increase from the 10.8trn/- collected during the same period last year, with the five month target set at 12.3trn/-, he said, explaining the higher collections as related to improved efficiency, better interactions with taxpayers and enhanced communication with traders.

There was also a rise in the number of taxpayers, such that revenue rose by two trillion shillings in five months, a significant achievement. “We’ve created an environment where taxpayers pay voluntarily,” he affirmed, expressing appreciation for taxpayer cooperation.

There was also a rise in customs revenue, growing from an average of 850bn/- per month to 1.2trn/-, with October and November figures reaching 1.15trn/- in each case, he said. 

The growth was occasioned by improvements at the port of Dar es Salaam, particularly after DP World took over the container terminal section, speeding up cargo handling and reducing ship turnaround times, he elaborated.
TRA has introduced special electronic stamps (ETS) for alcoholic beverages in an effort to combat the growing problem of counterfeit alcohol, he said, noting that 

The stamps feature advanced security elements to curb the sale of counterfeit goods and difficult to replicate, he said, noting that the agency is focused on educating traders and monitoring those failing to use the correct stamps.

The agency intends to hire 1,000 new staff members next year to enhance efficiency, particularly in taxpayer registration as starting in January, TRA will implement a new customs duty assessment modality, to improve the process.

It is also strengthening its online services to make them more efficient and accessible for businesses and taxpayers, he stated.

TRA is pursuing plans to raise tax revenue from the current 13 percent to 15 percent of the gross domestic product, he said, noting also that the electronic fiscal data management system (EFDMS), a platform that allows businesses to communicate sales transactions to TRA was being upgraded.

The modality enables TRA staff to monitor businesses that fail to issue receipts for extended periods, intended to ensure proper compliance.

The TRA CEO set out challenges like tax evasion by some traders and the lack of modern inspection equipment at border points such as Tunduma, Kasumulu and Namanga. 

This contribute to long truck queues and smuggling at border crossings, he said, pointing out that at the Tunduma border, TRA is working with the Tanzania Ports Authority (TPA) to purchase inspection equipment for Zambia’s Nakonde side, aiming to reduce truck congestion.