ZRA surpasses revenue collection target for the first half of 2024/25
ZRA's Acting Commissioner, Said Ali Mohamed
What you need to know:
- In a statement released on January 4, 2024, ZRA's Acting Commissioner, Said Ali Mohamed, attributed the strong performance to several key factors, including significant investments in infrastructure and social services, as well as overall improvements in Zanzibar's economic activities.
Unguja. The Zanzibar Revenue Authority (ZRA) has exceeded its revenue collection target for the first half of the 2024/25 fiscal year, collecting Sh429.033 billion from July to December 2024. This amount surpasses the projected target of Sh419.203 billion, achieving an impressive 102 percent of the estimated collection.
In a statement released on January 4, 2024, ZRA's Acting Commissioner, Said Ali Mohamed, attributed the strong performance to several key factors, including significant investments in infrastructure and social services, as well as overall improvements in Zanzibar's economic activities.
In the second quarter of the fiscal year, ZRA was expected to collect Sh225.171 billion, but it exceeded this target by collecting Sh228.098 billion, representing 101.3 percent of the projected revenue. The collection for this period shows a remarkable increase of 20.09 percent compared to the same quarter in the previous fiscal year, where Sh189.937 billion was collected.
For December alone, ZRA collected Sh75.582 billion, slightly surpassing the projection of Sh75.501 billion, achieving a 100.11 percent success rate. This represents a Sh12.069 billion increase from the Sh63.513 billion collected in December 2023, reflecting a growth of 19 percent.
Commissioner Mohamed highlighted the improved cooperation between ZRA and businesses, along with collaboration from various stakeholders both within Zanzibar and beyond, as key drivers behind the increased voluntary tax payments.
He also pointed to the continued development of port infrastructure, particularly at the Mkoani Port in Pemba, and the enhanced use of ZIDRAS revenue collection systems, including the electronic receipt issuance system (VFMS), as contributing factors.
Looking ahead, ZRA plans to strengthen its efforts to further boost revenue collection by working closely with businesses to create a more business-friendly legal environment, providing additional support, and fostering favorable conditions for new taxpayers.
“We are committed to setting up dedicated taxpayer service camps in various areas to offer closer tax services and increase the registration of businesses,” Mohamed said.
Business owners have praised the new approach by ZRA, which includes direct visits and engagement to understand their challenges. This approach has encouraged greater voluntary tax compliance.
“At least now we feel a closer connection between the authorities and businesses. In the past, when we heard that officers were coming, businesses would shut down. Even the tone used by officials was unfriendly. But now, we’ve started working together as people with the same goal,” said Abdukadir Shah, a businessman from Mlandege.
