Arusha. The Arusha City Council plans to establish a special court to handle cases involving tax and levy defaulters in a bid to boost domestic revenue and resolve disputes more efficiently.
The city executive director, Mr John Kayombo, announced the plan at the weekend, during an event to recognise staff from the revenue department who helped collect Sh41.3 billion in the 2024/25 financial year—equivalent to 90 percent of the council’s annual target.
He explained that the council had projected to collect Sh46.1 billion last year but managed Sh41.3 billion from various local sources, including new revenue streams.
These included dividing the city into tax zones to streamline collection and enhance oversight.
Mr Kayombo said the proposed special tax court would provide a fast and accessible mechanism to handle cases, thereby reducing challenges in tax collection.
“For the 2024/25 financial year, the council implemented a strategic plan for inclusive revenue collection and management from the headquarters down to the ward and street levels. This approach was designed to make it easier to reach taxpayers and improve compliance,” he said.
He recalled that in 2023/24, the council had targeted Sh48.9 billion but collected Sh35.1 billion, representing 72 percent of the target.
For 2025/26, he said the council would strengthen its strategies to improve performance further.
Key measures include reinforcing six revenue collection zones, upgrading ICT systems for data management, expanding the business database, and increasing both vehicles and staff for revenue operations.
Arusha District Commissioner, Mr Joseph Mkude, commended the council’s management for innovative measures that channelled collections into development projects.
“We have achieved this success because of discipline among council staff, and I have no doubt about the use of these funds since we have seen 10 percent allocated to community groups and witnessed development projects implemented from domestic resources,” he said.
He added that the council could generate more revenue if it strengthened enforcement of by-laws and reviewed them in consultation with key stakeholders, including councillors and legal experts.
During the event, outstanding revenue staff were recognised with certificates, cash prizes ranging between Sh400,000 and Sh1 million, and an educational tour.
They will visit top-performing councils in Temeke, Kinondoni, and Dar es Salaam City Council from Monday, September 1, 2025.
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