TRA set to collect 30.04trn/- in the 2024/2025 - Mwenda

By Guardian Reporter , The Guardian
Published at 11:42 AM Jan 03 2025
Tanzania Revenue Authority Commissioner General Yusuf Mwenda
Photo: Guardian Correspondent
Tanzania Revenue Authority Commissioner General Yusuf Mwenda

THE Tanzania Revenue Authority (TRA) is set to collect 30.04trn/- in the 2024/2025 financial year, Commissioner General Yusuf Mwenda has unveiled.

Briefing journalists in Dar es Salaam on Wednesday on the authority’s performance for the past six months, Mwenda cited factors behind realising the target as promotion of voluntary tax compliance, utilizing upgraded systems, enhancing taxpayer relations, and promoting the use of EFDs.

He also stated that other factors include creating a fair and equitable tax system, collaborating with the presidential task force on tax reviews, improving taxpayer services, and strengthening audit and investigation units to prevent tax evasion.

He also stated that TRA continues to implement President Samia’s directive to integrate systems. Improvements have been made to the customs management system (TANCIS) and the domestic tax management system (IDRAS) to reduce manual inspections of exports and enhance service delivery.

Discussing the IDRAS system, Commissioner for Domestic Taxes Alfred Mregi noted that a feature has been added to track locally produced goods, making it easier to assess taxes for domestic industries.

“The goal is to reduce complaints about arbitrary tax assessments, as the data entered into the system will guide tax evaluation,” he said.

Regarding TANCIS, Customs Commissioner Juma Hassan Bakari explained that it has been upgraded to include more institutions, such as the Tanzania National Roads Agency (TANROADS), airports, and border offices, to facilitate services for traders.

“For goods destined for export, instead of multiple checkpoints, inspections will now be handled through a system integrating TANROADS and other stakeholder institutions,” he said.

He also said TRA surpassed its tax collection target by 103.52% last month, collecting 3.587trn/- and setting eight resolutions to enhance its performance for 2025.

Additionally, the mining, banking, manufacturing, and trade sectors were the key contributors to these collections.

Mwenda stated that the authority collected 16.528trn/-, equivalent to 104.7% of the target, during the first half of the 2024/2025 financial year (July to December 2024).

He noted that this is the highest collection ever recorded by TRA, compared to the 13.9trn/- collected in the same period of the 2023/2024 financial year.

“These collections represent a 78.78% increase from the 9.242trn/- collected during the same period in the 2020/2021 financial year, before the Sixth Government under President Samia Suluhu Hassan took office,” Mwenda said.

The commissioner highlighted that in December, TRA broke records with a 17.59% revenue growth, increasing from 3.050trn/- in December 2023 to 3.587trn/- last year.

“TRA has set a new milestone by consistently meeting and exceeding its collection targets for six consecutive months in the first half of the 2024/2025 financial year. The average monthly collection has grown by 18.80%, from 2.319trn/- in 2023/2024 to 2.755trn/- this year,” he said.

In the second quarter of last year (October to December), TRA collected 8.741trn/-, equivalent to 104.63% of the target, representing a 19.05% growth compared to 7.342trn/- collected during the same period in 2023.

Mwenda credited this success to improved operational discipline, employee innovation, and the promotion of voluntary tax compliance.

He emphasized that TRA closely monitors the business environment, oversees industrial production, and encourages the use of electronic fiscal devices (EFDs).

On key contributing sectors, TRA’s Commissioner for Large Taxpayers, Michael Muhoja, cited banking, mining, manufacturing, and trade as the leading contributors.

Of the 3.587trn/- collected in December 2024, 1.660trn/- came from banks,1.1trn/- trillion from trade and customs duties, while the remainder was contributed by mining and manufacturing.

To further increase revenue, Mwenda revealed that TRA aims to expand its taxpayer base, including small, medium, and large taxpayers.