Why TRA’s beating revenue collection target is a big deal

This is equivalent to 106.3 percent of its Sh8.44 trillion target.

This represents a 15 percent rise compared to Sh7.79 trillion collected in the same period last year, underscoring how reforms are reshaping the country’s fiscal landscape.

The strong performance gives the government a solid start in implementing its Sh56.49 trillion 2025/26 budget, which was approved in June.

The budget places strong emphasis on domestic production, small-scale income-generating activities, clean energy and healthcare financing.

Out of the total, TRA is expected to raise Sh34.1 trillion, while the remaining Sh22.39 trillion is to be sourced from other domestic sources, external financing and non-tax revenues.

September proved a historic month, with the authority collecting Sh3.47 trillion, the highest monthly haul since TRA was established.

Officials say this record is a clear indicator of growing voluntary compliance and more effective tax administration systems.

TRA Commissioner General Yusuf Mwenda attributed the improved performance to better taxpayer relations, which align with President Samia Suluhu Hassan’s directive to encourage voluntary compliance rather than coercive enforcement.

“Stronger collaboration with ministries, agencies, international organisations and businesses has boosted compliance,” Mr Mwenda said in a statement.

To sustain momentum, the Authority has strengthened cooperation with institutions such as the Tanzania National Roads Agency and cargo-handling operators to ensure proper use of technological systems like TANCIS.

It is also working more closely with manufacturers to enforce the use of Electronic Fiscal Devices (EFDs), which track sales and ensure correct tax remittance.

Other initiatives include the deployment of Tax Ambassadors, the creation of a business facilitation desk to resolve bottlenecks, and the rollout of targeted audit plans to encourage consistent compliance across sectors.

According to Mr Mwenda, dialogue with businesses has eased tensions and is helping to build trust.

“Many businesses used to criticise heavy-handed enforcement, but through consultations, inspections are now regular yet fair, ensuring taxpayers meet obligations without stifling operations,” he said.

He added that TRA is also collaborating with agencies involved in the fight against economic crime to protect honest taxpayers and foster a predictable business environment.

Another major shift has been service delivery.

Mwenda said TRA now offers taxpayer services seven days a week in selected offices, a move aimed at addressing compliance challenges more swiftly.

Online traders, particularly in the hospitality sector, have also responded positively to recent campaigns urging them to register and pay taxes.

Analysts argue that the strong outturn is significant not only for fiscal management but also for investor confidence.

With Tanzania heading towards the October 2025 general election, a period when fiscal discipline is often tested, meeting revenue targets reassures businesses and development partners that the government can manage its finances responsibly.

Mwenda urged both citizens and businesses to remain tax-compliant during the election cycle.

“We assure taxpayers that the environment for doing business will remain fair and predictable,” he said.

TRA has set a full-year collection target of Sh36.07 trillion.

At the current pace, averaging Sh2.99 trillion per month, the goal appears achievable, although sustaining momentum will require continued partnership with the business community.

For the government, beating collection targets is more than a statistical victory.

It means fewer disruptions in implementing priority projects, reduced dependence on borrowing, and stronger capacity to finance social services, including education and health, from domestic resources.