How new tax system enhances compliance

2
How new tax system enhances compliance
How new tax system enhances compliance

Africa-Press – Tanzania. WAVE of optimism is sweeping across Tanzania as citizens, taxpayers and business stakeholders gear up for the official launch of the Tanzania Revenue Authority’s (TRA) Integrated Domestic Revenue Administration System (IDRAS), a major reform widely hailed as a turning point in tax administration and service delivery.

Scheduled for launch on February 9, this year, IDRAS will replace multiple fragmented tax platforms with a single, fully integrated digital system. The reform is expected to bring speed, transparency and convenience to millions of taxpayers while strengthening trust between the business community and the TRA.

Speaking in separate interviews by Sunday News, stakeholders across sectors voiced enthusiasm, describing the system as a long-awaited solution to challenges that have long hindered tax compliance and service delivery.

Ms Neemagrace Protas, an accountant at Pweza Finance Limited, described the new system as a decisive break from the past.

“Many services that once required physical visits to offices are now available online. Tasks that used to be complicated travelling, photocopying documents, waiting in queues can now be done quickly and easily through the system,” she said.

She highlighted obtaining Tax Clearance Certificates as a clear example of IDRAS’ impact.

“Previously, it involved multiple steps and office visits. Now, you apply online, documents are verified instantly and you receive your clearance without unnecessary disturbance. The system has brought tremendous convenience,” Ms Protas said.

The sense of relief is echoed across institutions. Mr Elikunda Materu, Manager of Mwananchi Communication SACCOS Limited, said the reform would transform communication between businesses and the TRA.

“In the past, we struggled with delays, missing payments and slow feedback, especially on returns and reconciliations. Through IDRAS and the training we’ve received, accountants and tax advisers can now work efficiently from anywhere and communicate directly with TRA officers,” he said.

He added that monthly, quarterly and post-audit tax submissions would now be faster and more reliable, cutting bureaucracy and encouraging voluntary compliance.

From the business community, optimism is equally strong. Ms Pendo Lucas, a member of the Dar es Salaam Regional Business Community, said traders believe the new system will address longstanding concerns and improve compliance as training continues.

She urged traders to embrace IDRAS and continue cooperating with the TRA.

“It shows a genuine commitment to improving relations with the business community,” she said.

At the grassroots level, entrepreneurs also see new opportunities. Mr Nuru Kyomo, a local business operator, said the system will boost optimism by simplifying tax compliance and enhancing transparency.

However, he stressed the need for education, especially for rural communities and small-scale traders, to ensure everyone benefits fully from the digital system.

“More education is needed so everyone understands how the system works. TRA teams should visit business operators at their workplaces and provide hands-on training,” he said. With IDRAS, Tanzania moves a step closer to a modern, efficient and transparent tax system a development that promises relief, convenience and renewed trust between taxpayers and the TRA.

He added that such practical engagement would increase awareness, build confidence and strengthen public trust in the IDRAS system.

Tax consultants, who often serve as the bridge between taxpayers and the authority, also see IDRAS as a major turning point.

CPA Victoria Soka, Chairperson of the Tanzania Association of Tax Consultants (TATC), said the system will significantly improve tax management and advisory services.

“IDRAS will give us access to comprehensive taxpayer information, enabling clients to receive services from anywhere,” she said.

At the heart of the reform is the TRA’s ambition to modernise domestic revenue administration. The Commissioner for Domestic Revenue, Mr Alfred Mlegi, said IDRAS was developed to eliminate the inefficiencies caused by operating multiple disconnected systems.

“Previously, we had separate platforms for VAT and other services. Now we have one integrated system that handles registration, return filing, payments, objections and sales monitoring,” he said.

Through its sales module, IDRAS will allow traders to record purchases and sales, automatically update stock balances and generate accurate data for fairer tax assessments.

Mr Mlegi acknowledged past complaints over inaccurate assessments, often caused by limited data.

“By collecting information from multiple sources, IDRAS gives us a broader picture and enables fair and accurate assessments, addressing concerns of unfair taxation,” he said.

In a move welcomed by traders, IDRAS will also eliminate the need for separate Electronic Fiscal Devices (EFDs).

“The system itself can generate fiscal receipts, reducing costs and operational challenges,” he said.

Source: Daily News – Tanzania Standard Newspapers

LEAVE A REPLY

Please enter your comment!
Please enter your name here