In an unprecedented achievement, Tanzania has witnessed a remarkable surge in tax collections during the first half of the 2023/24 fiscal year, marking an 11.5 percent increase compared to the corresponding period in the previous financial year.
The Tanzania Revenue Authority (TRA) reported a historic milestone in December 2023, with a record-breaking collection of 3.05 trillion Tanzanian shillings (tri/-), equivalent to 102.9 percent, setting a new benchmark since the establishment of TRA.
According to the report released on Monday, the TRA successfully collected 13.9 trillion Tanzanian shillings in the period between July and December 2023, representing an impressive 97.98 percent of the targeted 14.21 trillion Tanzanian shillings. In the same period the previous year, tax collections amounted to 12.49 trillion Tanzanian shillings.
Commissioner General Alphayo Kidata, in a statement, highlighted that the December 2023 collection of 3.05 trillion Tanzanian shillings was a historic achievement, reaching a level unprecedented in TRA's history.
The monthly tax collections for the last six months were as follows: July (1.9 trillion), August (2 trillion), September (2.6 trillion), October (2.1 trillion), November (2.1 trillion), and December (3.05 trillion).
Comparing these figures to the corresponding period in the previous fiscal year, monthly collections experienced an average increase of 11.5 percent.
Kidata attributed these impressive results to the commitment of the authority in implementing directives and guidelines provided by President Dr. Samia Suluhu Hassan and other government leaders. He emphasized the ongoing execution of the government's sixth strategic plan, which has positively impacted tax collection in the country.
Key initiatives under the strategic plan included structural improvements within the TRA, such as the introduction of new mid and large taxpayers’ divisions, aimed at providing enhanced services tailored to different taxpayer groups.
Additionally, improvements in the business environment in Tanzania have attracted more investments in the manufacturing sector and increased imports, contributing to the surge in tax collections.
Major reforms in the tax collection systems, particularly in the management and collection of customs, have played a vital role in simplifying processes and enhancing efficiency in the receipt of returns and reports from taxpayers.
Other factors contributing to the success story include a strengthened tax education network and increased provision of information to taxpayers and the public at large on tax-related issues such as Electronic Fiscal Devices (EFD) and Electronic Tax Stamps (ETS).
Recognizing the significant contribution of taxpayers and the public, Kidata emphasized the importance of sustaining these achievements. He urged taxpayers and the public to continue adhering to legal requirements, including submitting returns and timely payment of taxes, while encouraging the use of electronic receipts.
The management and board of directors of the TRA expressed their gratitude for the collective efforts that led to these outstanding results, indicating a positive trajectory for Tanzania's fiscal health in the coming year.