THE Zanzibar wing of the Tanzania Revenue Authority (TRA) attained 106 percent of its tax collection target for July-March period of fiscal 2024/2025.

Saleh Haji Pandu, the TRA deputy commissioner said at a media briefing here yesterday that the success was facilitated by improved digital services and setting up new branches in northern and southern tourism zones in Unguja Island.

TRA Zanzibar collected 471bn/- during the period against the 442bn/- target, he said.

Opening branches in dense tourism areas like Kiwengwa and Paje was directed by higher authorities, with intent to bring revenue services closer to investors in the sector, he said.

"We succeeded in collecting revenue towards our 660bn/- target primarily because we've brought services closer to investment and tourism areas," he stated.

Other factors include enhanced staff collaboration, plugging loopholes for tax evasion and setting realistic collection targets aligned with Zanzibar's economic trends, he specified.

TRA has also opened service centers at cargo handling areas like Fumba and Maruhubi with its dry port, to offer convenient services to traders, he said. 

Improved online services streamlined operations, reducing congestion at offices, while the use of electronic receipts significantly boosted government revenue, he said.

Electronic receipt services have helped us to obtain accurate sales data, ensuring traders pay due taxes, where despite delays in container clearance at Malindi port, improved online services allowed businesses to process tax payments before cargo arrives in Zanzibar, thereby mitigating delays. 

This system enables early preparation and payment of documents to expedite cargo release, he said, projecting that during fiscal 2025/2026 TRA will ensure efficient systems and timely service delivery.

This has to do with following leadership directives, combating corruption and tax evasion, measures designed to surpass the government's new collection target for the financial year, he said.

TRA Zanzibar is tasked with collecting 825bn/- or a 38 percent increase in revenues for the coming financial year, including a 30 percent rise in port collections and value added tax.

It will also entail rises in tax on Union civil servants stationed in Zanzibar, where revenues collected in Zanzibar remain in the Zanzibar Treasury, with TRA Zanzibar operational costs covered by TRA nationally.

Earlier, while presenting the 2025/2026 budget estimates, the Zanzibar Finance and Planning minister Dr Saada Mkuya observed that the government plans to spend 6.9trn/- overall in recurrent and development expenditure.