Samia commends TRA for averting Sh200 billion loss

Dar es Salaam. The Tanzania Revenue Authority (TRA) has successfully prevented a loss of Sh200 billion due to tax evasion by unscrupulous businesses.

President Samia Suluhu Hassan highlighted this significant achievement on January 23 during the TRA Awards Gala held at the Superdome in Dar es Salaam.

At the event, the President emphasised the serious consequences of tax evasion on the economy and public services.

“Tax evasion harms taxpayers and disrupts the provision of essential public services, such as timely supply of medicine to health centres, desks to schools, and electricity distribution,” she said.

 “Those who evade taxes punish compliant taxpayers, which is unacceptable. This is why I stress the importance of fairness in tax collection. TRA must remain vigilant against dishonest traders who forge Electronic Fiscal Device (EFD) receipts to defraud the government.”

She lauded the taxman for recently thwarting a significant scam involving counterfeit excise stamps on beverages.

 “TRA acted swiftly, saving us from this immense loss. Congratulations, but I urge you to increase your efforts in these critical areas,” she said.

No presidential directives to evade taxes 

President Hassan condemned individuals who misuse her name to evade tax obligations. “Some people avoid paying taxes, claiming directives from above, yet I, the President, have never issued such directives,” she clarified.

She reiterated the government’s commitment to creating a tax system that is fair, predictable, simple, user-friendly, and features reasonable tax rates. “We aim for a tax system that facilitates and accelerates economic growth, allowing us to collect more revenue, achieve financial independence, and build a self-reliant nation,” she explained.

Toward financial self-reliance 

President Hassan highlighted the importance of domestic revenue generation in reducing dependency on external assistance. “When a country relies on its own internal revenue, it gains the confidence to refuse external aid and address matters domestically. This self-reliance also enables us to confidently set our own policies,” she noted, urging businesses to comply with tax obligations.

Citing the CCM manifesto, she reiterated the government’s focus on reducing budget dependency through strengthened domestic revenue collection.

 “For the 2023/24 fiscal year, out of the government’s Sh49.34 trillion budget, Sh33.4 trillion—equivalent to 61.6 percent—is expected to come from tax revenues. This marks a significant improvement compared to the 52 percent recorded in 2020/21,” she explained.

ICT investments to streamline tax processes 

The President also emphasised the government’s investment in ICT systems to enhance operations and service delivery in key institutions like TRA.

"These systems are designed to eliminate inconveniences for taxpayers, simplify business processes, and close revenue leakage loopholes, as outlined in the CCM Manifesto,” she said.

“We are investing heavily in ICT systems and expect to see tangible results. It would be pointless to invest significant funds in systems that yield minimal outcomes. Our systems must prioritise the end-user—the taxpayer.”

President Hassan further stressed the importance of financial inclusion, urging the development of systems accessible even to farmers. “If we can create a system that even farmers can use, that is the financial inclusion we want for our people,” she stated.

Elevating tax awards to presidential level 

President Hassan announced that starting from the 2024/25 fiscal year, the TRA Awards will be elevated to the President’s Awards to enhance the prestige of the event and motivate businesses across the country.

She also emphasised the need for stringent penalties for individuals who make tax collection unnecessarily challenging. “While we recognise taxpayers today, it is equally important to impose appropriate penalties on those who force us to exert unnecessary effort in collecting taxes,” she concluded.