TRA sets Sh19 trillion revenue collection despite missing the 2018/2019 target by 13.2 per cent

Dar es Salaam. The Tanzania Revenue Authority is positive that it will hit this year's revenue collection target of Sh19 trillion despite missing last fiscal year's goal by 13.2 per cent.

TRA taxpayer services and education acting director Richard Kayombo said some Sh15.9 trillion was collected in the last financial year compared to the target of Sh18 trillion that they had set.

The sum translates to an average of Sh1.3 trillion on the monthly basis against an average of Sh1.5 trillion.

"The shortfall is attributed to but not limited to tax evasion through smuggling and tax arrears," noted Mr Kayombo.

Despite its failure to hit the target during the period under review, the taxman's revenue collection projection has jumped to Sh19 trillion this financial year compared to last year's Sh18 trillion.

This suggests that if the target is to be achieved, TRA will have to do all in its power to collect an average of Sh1.58 trillion per month.

"We have all what it takes to hit the target. We have set up some strategies to realise this goal," noted Mr Kayombo.

He banked his hopes on increased tax payer compliance, expanding the taxpayer base and crackdown on smuggling.

To increase efficiency in the collection of the excise duty, Value Added Tax (VAT) and corporate tax from manufacturers, he said, the government is rolling out phase two of the electronic tax stamps (ETS) today (Thursday).

The sectors to be touched are those dealing with soft drinks, including juice, water and 'Soda' as well as artistic products.

"No single cent will remain uncollected. The fate of this nation rests on the shoulders of 2.75 million tax payers," noted Mr Kayombo

However, despite its failure to hit the 2018/19 revenue collection target, under the period of reference, TRA recorded an increase of Sh400 billion in revenue compared to the 2017/18.