TRA projects to meet Sh30 trillion revenue target for 2024/25 Fiscal Year
The Taxpayer Education Manager at the Tanzania Revenue Authority (TRA), Mr Paul Walalaze, addresses Mwananchi Communications Limited (MCL) journalists and marketing executives during a courtesy visit by the Taxpayers Department to the company’s headquarters on Friday, December 20, 2024. PHOTO | SAID KHAMIS
What you need to know:
- TRA's tax collection between July and December 2024 is expected to be boosted by historic collections anticipated in December, the surge that will help the achievement of the ambitious target.
Dar es Salaam. The Tanzania Revenue Authority (TRA) has collected Sh12.5 trillion in the first five months of the 2024/25 fiscal year, reinforcing the authority's optimism about reaching its Sh30 trillion revenue target.
TRA's tax collection between July and December 2024 is expected to be boosted by historic collections anticipated in December, the surge that will help the achievement of the ambitious target.
The revelation came on Friday, December 20, 2024, from the TRA Taxpayer Education Manager, Mr Paul Walalaze, during a visit by his team to the Mwananchi Communications Limited (MCL) headquarters at Tabata Relini in Dar es Salaam.
The Tanzania Revenue Authority (TRA) Taxpayer Education Manager, Mr Paul Walalaze, and Mwananchi Communications Limited (MCL) Head of the Digital and Circulation Department Ms Siael Macha hold a cake as a symbol of collaboration and goodwill in their professional duties. PHOTO | SAID KHAMIS
The visit was aimed at expressing gratitude to MCL, the publisher of Mwananchi, The Citizen, and Mwanaspoti, as well as their online platforms, including Mwananchi Digital, for their significant role in encouraging voluntary tax compliance.
The efforts have contributed to an increase in domestic revenue collection during the first half of the 2024/25 fiscal year.
Mr Walalaze highlighted the progress TRA had made, stating that the collected Sh12.5 trillion averaged Sh2.5 trillion in monthly revenue collection from July to November.
He added that this puts TRA on track to exceed half of its annual tax revenue target.
"We expect to collect Sh3.4 trillion in tax revenue this December. While this is higher than the monthly average, the expected surge is due to increased shopping activity during the festive season," he explained.
Tax collections in December have consistently risen over the past five years, with the TRA setting new records annually.
The collections for December from 2019 to 2024 respectively are as follows: Sh1.987 trillion (2019/20); and Sh2.088 trillion (2020/21). Others are Sh2.51 trillion (2021/22); Sh2.77 trillion (2022/23; and Sh3.05 trillion (2023/24).
Given this positive trend, Mr Walalaze expressed his appreciation for MCL’s role in spreading tax awareness, noting that the company's outreach has played a key role in encouraging citizens to voluntarily pay taxes.
"Thanks to our door-to-door awareness campaign, we’ve surpassed 100 percent of our revenue collection target for the first five months of the fiscal year," he said.
MCL’s Head of the Digital and Circulation Department, Ms Siael Macha, thanked the TRA team for the visit and reiterated the company's commitment to support the authority's efforts.
"We will continue to use our platforms to further spread awareness and reach a broader audience in support of the country's development," she said.
During the presentation of the Sh49.346 trillion budget for the 2024/25 fiscal year, Finance Minister Mwigulu Nchemba informed Parliament that TRA is expected to collect Sh29.415 trillion in tax revenue.
Other anticipated revenue sources include Sh3.839 trillion from non-tax revenues, Sh1.356 trillion from council collections, Sh5.13 trillion in aid and low-interest loans from development partners, and Sh9.604 trillion from commercial loans, both domestically and internationally.
