TRA targets influencers, wants its share from digital economy

By Christina Mwakangale , The Guardian
Published at 10:17 AM May 09 2025
TRA Director General Yusuf Mwenda
Photo: File
TRA Director General Yusuf Mwenda

THE Tanzania Revenue Authority (TRA) has launched a nationwide operation targeting social media influencers and digital entrepreneurs who earn income online but fail to comply with national tax regulations.

TRA Director General Yusuf Mwenda made the announcement on Wednesday during the inaugural National Tax Forum held in Dar es Salaam, emphasizing that all income-generating activities, including those conducted via social media platforms, are subject to taxation.

“Online businesses are not exempt from tax obligations. Anyone earning over 4m/- per year is required by law to pay tax,” he said. “Those who do not comply will be identified by our officers and face penalties, including fines and interest for non-payment.”

Mwenda revealed that while a number of online entrepreneurs have started complying following public education campaigns, many continue to operate without registering their businesses or disclosing their incomes to TRA.

He called on digital business operators to voluntarily register and fulfill their tax obligations, warning that failure to do so could lead to enforcement actions.

As part of a broader strategy to strengthen tax collection, TRA has set aside 200m/- to support youth and innovators in developing digital solutions that improve revenue mobilization.

Mwenda also unveiled a whistleblower incentive programme aimed at encouraging the public to report tax evaders. Informants who provide credible and verifiable information leading to recovery of unpaid taxes will be rewarded with cash prizes ranging from 1m/- to 20m/-, depending on the amount recovered.

“Timely and accurate information on tax evasion will not only be appreciated but rewarded. This is a critical tool in improving compliance and safeguarding national resources,” he added.

The National Tax Forum, which brought together policy makers, tax professionals, business stakeholders and academics, aimed at building consensus on how to create a more transparent and inclusive tax system.

Gracing the event as guest of honour, Deputy Minister in the President’s Office (Planning and Investment), Stanslaus Nyongo—representing Finance Minister Dr Mwigulu Nchemba—said the forum was vital in helping the government understand how to encourage voluntary compliance and widen the tax base.

“We’re here to listen to stakeholders and collect insights on how to increase the number of taxpayers,” he said. “By creating a friendly tax environment, we can ensure more businesses are brought into the formal economy, ultimately supporting national development.”

He emphasized the government’s commitment to promoting tax justice, efficiency, and the use of digital technologies in tax administration.

Rector of the Institute of Tax Administration (ITA), Prof. Isaya Jairo, said the forum was a significant milestone in efforts to improve tax education and enhance the country’s ability to navigate emerging global economic challenges.

He noted that rapid changes in technology, globalization, and shifting economic dynamics are reshaping the global tax landscape, with implications for how countries like Tanzania collect and manage revenue.

“These trends present both opportunities and challenges. Our responsibility as a tax training institution is to equip the next generation of professionals with the knowledge and tools they need to manage these issues effectively,” he said.

He added that forums like this create a platform for collaboration between the government, private sector and academic institutions to drive sustainable tax policy and administration reforms.

With the expansion of Tanzania’s digital economy and increased engagement in e-commerce and content creation, TRA officials emphasized the need for updated strategies that reflect modern revenue streams.

The National Tax Forum is expected to serve as a foundation for deeper stakeholder engagement, innovative solutions and the development of policies that support a fair and efficient tax regime.

The forum concluded with a shared commitment to improving tax education, embracing digital tools and fostering a culture of voluntary compliance across all sectors of the economy.