ZRA exceeds collection target for third quarter

Unguja. The Zanzibar Revenue Authority (ZRA) has reported a remarkable Sh238.746 billion in collections for the third quarter of the 2024/25 financial year, surpassing its target by 100.06 percent. The target for the period had been set at Sh238.611 billion.

In a statement issued on April 3, 2025, the Commissioner-General of ZRA, Said Kiondo Athumani, confirmed that the collections spanned from January to March this year.

Kiondo highlighted that this represents a growth of 14.9 percent, with an increase of Sh31.090 billion compared to the same period in 2023/24, when the collections amounted to Sh207.715 billion.

“For January 2024/25, the target was Sh80.984 billion, but the actual collections reached Sh81.512 billion, achieving 100.65 percent of the goal. This is an increase of Sh11.332 billion and reflects a growth rate of 16.15 percent,” Kiondo said.

In February, the estimated collection was Sh83.229 billion, and the actual collections reached Sh83.483 billion, or 100.30 percent of the target, an increase of Sh10.558 billion, with a growth rate of 14.48 percent.

For March, the target was Sh74.397 billion, with actual collections totaling Sh73.750 billion, achieving a success rate of 99.15 percent.

Kiondo attributed the success to the growing and dynamic economic relationship between Zanzibar and Mainland Tanzania, fostered by strong leadership and policies that have bolstered trade.

He also pointed to major investments in infrastructure and social services, alongside Zanzibar’s expanding economic activities, as a result of the effective economic strategies under President Hussein Mwinyi’s government.

Other key factors, he said, include enhanced taxpayer education programs, designed to encourage voluntary tax payments, and improvements in the use of systems for tax administration, such as the electronic receipt system (VFMS) and the ZIDRAS revenue collection platform.

Kiondo further emphasized that ZRA’s increased monitoring of taxpayers in various business sectors has been instrumental in improving tax service delivery to both taxpayers and the broader public.

Looking ahead, Kiondo confirmed that ZRA will continue with educational initiatives aimed at different taxpayer groups, further encouraging voluntary compliance.

The Commissioner-General also announced plans to intensify monitoring of all ongoing government projects, ensuring accurate tax collection in line with the scale of these projects.

In a recent developments, Minister of Finance and Planning, Dr. Saada Mkuya, alongside ZRA officials, launched a special operation targeting businesses found evading taxes by failing to issue electronic receipts.

Some businesses were reportedly telling customers that they would have to pay a different price for goods or services, depending on whether they accepted the electronic receipt, with the price being higher for those who requested a receipt.

Dr Saada assured that this issue would be addressed to ensure that all taxpayers contribute fairly to the country’s development.