For years, the relationship between taxpayers and tax collectors has been one of cautious distance –a relationship shaped by fear, not understanding
Not long ago, the CEO Roundtable of Tanzania (CEOrt) convened a conversation themed “Strengthening Public–Private Dialogue on Tax Administration”.
At the centre of the dialogue was Mr Yusuph J. Mwenda, Commissioner General of the Tanzania Revenue Authority (TRA), engaging directly with private sector leaders to reflect on how we can build a tax ecosystem rooted in trust, understanding and shared responsibility.
For years, the relationship between taxpayers and tax collectors has been one of cautious distance – a relationship shaped by fear, not understanding. Fear of audits. Fear of penalties. Fear of the unknown.
But the truth is this – fear does not build nations. Understanding does.
In that room, I shared a personal story – one that mirrors the lived reality of millions of Tanzanian entrepreneurs.
“When I was a young business reporter at Business Times, I could only imagine the pain entrepreneurs were feeling in their quest to comply.
They felt it deeper but for me, it was like a pain on my skin, bearable. I could not relate that much. Then, as CEO of Mwananchi Communications Limited, I began to feel that pain getting closer, deep, in my flesh. Fast forward to setting up my own company and now the pain has reached the bone. Iko kwa mfupa.”
That pain is the price of compliance in its current form – a maze of overlapping regulations, multiple levies and duplicated inspections.
A system where every regulatory body – TRA, Occupational Safety and Health Authority (OSHA), Fire Department and others – knocks at the same small door, each asking for its share.
For many, it is too much to bear. And so, they choose the path of informality – not out of defiance, but survival.
Why a transformed TRA matters
This is why the conversation with the TRA Commissioner General gave me hope.
Because what I saw that evening was not the traditional taxman. It was a leader on a mission to transform an institution – from an enforcer to an enabler; from a collector to a connector; from fear to understanding.
The CG spoke candidly about his mission as the TRA czar, which, as expected, has its own internal challenges, including leading thousands of staff, many of whom are still adjusting to the authority’s renewed vision.
He recognises that change begins from within. And that realisation alone is powerful because a transformed TRA can transform the culture of compliance itself.
From enforcement to empowerment
During our follow-up meeting with the CG – who had invited me to his office seeking to understand better the “maumivu kwenye mfupa” (the pain in the bone) – we unpacked this transformation agenda – not in theory, but through practical ideas that can change how citizens experience compliance.
Imagine a single digital and physical platform that integrates all regulatory bodies – TRA, OSHA, Fire, National Environmental Management Council (NEMC), and others – so that businesses register, pay, and get certified in one place. That is efficiency. That is empowerment.
Imagine a tiered system that allows startups and small and medium enterprises (SMEs) to grow under lighter compliance obligations before being fully absorbed into the mainstream framework. That is not leniency. It is logic. Growth first, taxation next.
The meeting ended with a shared resolve that compliance should not be a punishment but a pathway. This is what transformation looks like when institutions listen.
The bigger picture
As Tanzania moves toward Dira 2050, the role of TRA is more than collecting revenue. It is about shaping national culture – one where citizens see tax not as extraction, but as contribution; not as loss, but as investment.
For that to happen, TRA must continue on this path of change – leading with empathy, communicating with clarity, and engaging with courage because when understanding replaces fear, compliance follows naturally.
The question is no longer, “How do we collect more?” The question is, “How do we help our people understand more so that they choose to comply?”
A transformed TRA will be the answer to move taxpayers from fear to understanding and compliance and they will need all our support.
Bakari S. Machumu is the Founder and CEO of BSM Washauri (TZ) Ltd., a knowledge-based business firm specialising in Business and Leadership Advisory; Strategy and Media and Communications Solutions
