TRA upbeat despite missing collection target for 2017/18

Dar es Salaam. Tanzania Revenue Authority (TRA) is optimistic that it will attain the 2018/19 tax revenue collection target despite missing last year’s collection goal by 9.4 per cent.

TRA taxpayer services and education director Richard Kayombo said on Tuesday July 16  that Sh15.5 trillion was collected last financial year against the target of Sh17.1 trillion.

This implies that the taxman was collecting an average of Sh1.29 trillion on the monthly basis against an average of Sh1.42 trillion that was required to garner if the set annual target was to be hit.

The shortfall, according to the taxman is explained by, but not limited to accumulation of tax arrears.

Economist and business expert Donath Olomi said poor business performance due to decrease of money in circulation, was to blame for the deficit.

Despite its failure to attain the target during the period, the taxman’s target in the current financial year has increased as it is tasked to collect Sh18.2 trillion to partly finance approximately Sh32.5 trillion.

This suggests that if the target is to be realized, TRA will be required to be collecting an average of Sh1.5 trillion per month.

“Despite a shortfall in the last financial year, still we have all what it takes to hit this year’s target. We have set urgent steps to achieve the set targets without fail,” said Mr Kayombo.

He banks his hopes on attracting more taxpayers to pay the arrears.

This, is through, providing an offer of interest rate and penalties waiver on the arrears for the tax payers who would submit the request not later than the end of November this year.

“We are now making out all efforts to recover arrears. No tax revenue will remain uncollected,” noted Mr Kayombo.

He also noted that TRA was working with various business people in the country to educate and encourage traders on the needs to install Electronic Fiscal Devices (EFDs) machines –a development that will rekindle the taxman’s fortune.

In the same vein TRA has already started broadening the tax base by registering small traders in the informal sector.

“TRA should do more than that. Government should ensure every Tanzanian with income pays tax, to reduce the tax burden that has been shifted to a few,” Prof Samuel Wangwe of the University of Dar es Salaam told The Citizen by telephone.