Africa-Press – Tanzania. TANZANIA Revenue Authority (TRA) has collected 1.34tri/- and 1.35tri/- in April and May respectively, which is up by 8.8 per cent and 13.5 per cent compared to the collections during the corresponding period, last year.
According to TRA Commissioner General Alphayo Kidata, this year the performance against target has generally improved at 83.2 per cent and 82 per cent in April and May respectively.
Last year, the taxman collected 1.23tri/- in April and 1.17tri/-in May, thus performing by 83.3 per cent and 75.3 per cent respectively.
Mr Kidata attributed the collection rise to various measures taken including addressing challenges facing the business community in paying tax and strengthening electronic tax systems.
We revisited electronic systems for improvement to enable all traders and all citizens to pay taxes voluntarily due to challenges that had arisen in the past to ensure that all taxpayers raised their issues with TRA in a bid to seek solutions,” he said.
Mr Kidata attributed the positive revenue collection trend to strengthened systems following directives issued by President Samia recently.
The president told the Minister for Finance and Planning, Dr Mwigulu Nchemba to adopt a more efficient tax collection approach that would encourage compliance, instead of using force which has raised concerns among the business community about being counterproductive.
Mr Kidata said TRA has strengthened electronic systems including Tanzania Customs Integrated System (TANCIS) that operates alongside Tanzania Electronic Single window, which together can process transactions not less than 54,000 per month and helps the taxman boost customs revenue collection.
To curb fake Electronic Fiscal Device (EFD) receipts, he said they have developed software to address the challenge whereby all receipts now have verification and Quick Response (QR) codes.
“There are traders who were subjected to unrealistic tax estimates, thus TRA made arrangements to involve them, listen to them and agree on the amount they could pay instead,” he said.
Regarding VAT Returns, the Commissioner said so far TRA has had claims from traders amounting to 844bn/ – but in 100 days of President Samia they have been able to pay 92bn/-.
According to Mr Kidata, another area that had challenges was to refund import duty of 15 per cent on sugar imported for industrial use in which, for 2020/2021 the taxman was supposed to reimburse 57bn/- to importers.
“So far, this year, we have paid 37bn/ – to traders and we hope to pay the remaining amount of 12bn/ – this month. According to recent tax reforms from tomorrow (July 1st 2021), the requirement of 15 per cent will be waived,” he said.
Mr Kidata said they have arrived at that decision because the introduction of the Electronic Tax System (ETS) enables the government to address longstanding challenges in the administration of tax on excisable goods.
In a move to increase tax awareness among the community, he said the taxman was negotiating with the ministry of education so that the tax subject can be taught from kindergarten and primary schools to enable them to understand the importance of paying taxes.
