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TRA announces record revenue collections

Despite Tanzania’s economy being ravaged by Covid-19 pandemic, revenue collected by the Tanzania Revenue Authority (TRA) in the first half of the 2021/22 Fiscal Year shades light of a bright future.

This comes after TRA reported to have collected Sh11.11 trillion which is equivalent to 98 percent of Sh11.302 trillion forecasts between July and December 2021.

A statement signed by TRA Commissioner General Alphayo Kidata released yesterday had it that when compared to revenue collected during a similar period in 2020/21 there is a notable 20.2 percent increase.

“The collection equals to an increment by Sh1.87 trillion when compared to Sh9.24 trillion collected during the same period of 2020/21 Financial Year,” reads the statement in part.

The taxman says TRA collected Sh2.51 trillion in December 2021 which is Sh220 billion more as compared to the Sh2.29 trillion forecasts.

Richard Kayombo, Mkurugenzi wa Huduma na Elimu kwa Mlipakodi wa TRA
Richard Kayombo, Mkurugenzi wa Huduma na Elimu kwa Mlipakodi wa TRA

Furthermore, the statement says that despite surpassing the forecasts, the 109 percent collections sets the new monthly revenue collections records since establishment TRA.

“During that period, the voluntary tax payments trend as well as authority and taxpayers relationship was satisfactory,” reads the statement, adding.

“The authority would like to thank stakeholders and taxpayers who have enabled the authority to set the new revenue collection record since its establishment.”

In the statement, Mr Kidata thanks President Samia Suluhu Hassan for her directives and guidance aimed at enabling TRA to provide services according to integrity, professionalism and accountability.

Regarding its expectations in the New Year 2022, TRA says it expects traders dealing in different products would provide appropriate Electronic Fiscal Device (EFD) receipts as per the directives of the regulations of the country.

The authority wants customers to demand accurate EFD receipts in every sales and services given, noting that the move will give significant contribution to the country.

“Taxpayers should submit accurate returns and make timely payment of taxes due,” says the taxman in the statement.

According to TRA, producers and importers of products charged with import duties should make better use of excise duty stamps.

The taxman also wants taxpayers to timely service their tax debts and that stakeholders should keep attending trainings provided by TRA on tax capacity building education and tax systems supervision.

Parliament on June 22, 2021 passed the 2021/22 Budget after the government clarified a number of issues raised during the debate on the financial plan.

The final Budget was raised to Sh36.68 trillion from the Sh36.3 trillion plan that was proposed by Finance and Planning minister Mwigulu Nchemba in his speech to Parliament on June 10.

Apart from raising the Budget, the government also clarified that the new monthly Sim card levy ranging from Sh10 to Sh200 would depend on the ability of users to recharge their balances.

It also said that despite complaints that the cost of electronic tax stamps (ETS) was too high, the government needed them in its revenue collection endeavors and plans.

About Tanzania Revenue Authority (TRA)

The Tanzania Revenue Authority is a semi-autonomous Government Agency of the United Republic of Tanzania. It was established by the Tanzania Revenue Act, CAP. 339 in 1995 and started its operations on the 1st of July 1996

About Tanzania Revenue Authority (TRA)
About Tanzania Revenue Authority (TRA)

In carrying out its statutory functions, TRA is responsible for, among others, to administer and give effect to the laws or the specified provisions of the laws set out in the First Schedule to said Act, and for that purpose, TRA undertakes to assess, collect, and account for all revenue to which those laws apply, on behalf of the Government. Other specific functions of TRA include the following.

First, to monitor, oversee, coordinate activities and ensure the fair, efficient and effective administration of revenue laws by the Revenue Department in the jurisdiction of the Union Government. Second, to monitor and ensure the collection of fees, levies, charges, or any other tax collected by any Ministry, Department or Division of the Government as revenue for the Government.

Third, to advise the Minister and other relevant organs on all matters pertaining to fiscal policy, the implementation of the Policy, and the constant improvement of policy regarding revenue laws and administration. Fourth, to promote voluntary tax compliance to the highest degree possible.

Fifth, to take such measures as may be necessary to improve the standard of service given to Taxpayers with a view to improving the effectiveness of the revenue Departments and maximizing revenue collection. Sixth, to determine the steps to be taken to counteract fraud and other forms of tax and another fiscal evasion. Seventh, to produce trade statistics and publications on a quarterly basis.

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