In a significant move towards enhancing revenue administration, the Tanzania Revenue Authority (TRA) and Zanzibar Revenue Authority (ZRA) are in the final stages of integrating their tax systems. This integration aims to facilitate a more convenient tax administration process, particularly for traders engaged in transactions spanning both mainland Tanzania and Zanzibar.
Deputy Minister of State for the President’s Office, Finance, and Planning, Ali Suleiman Ameir, announced this development during a session at the House of Representatives. He revealed that ZRA is also making efforts to bring its services closer to taxpayers by establishing regional tax offices. Already, four regional offices have been inaugurated in Urban West, Unguja South, Unguja North, and North Pemba regions, strategically positioned to reduce inconveniences for taxpayers and promote compliance in tax payments.
To further enhance efficiency, the authorities are implementing electronic systems and introducing online return services. These advancements are expected to not only streamline the tax collection process but also reduce the overall cost of tax obligations for taxpayers.
Responding to a query from Special Seats Representative Mwantatu Mbarak Khamis regarding the government's strategy to strengthen revenue collection systems, especially from petrol stations, Deputy Minister Ameir clarified that taxes on petrol are levied upon consignment entry at the seaport. Furthermore, petrol station operators are liable for income tax solely on their business profits, ensuring a fair and transparent taxation process.