Africa-Press – Tanzania. IMPROVED systems in revenue collection and conducive business environment in the country has enabled the Tanzania Revenue Authority (TRA) to collect 99.22 per cent of its target for the 2021/22 financial year.
In the financial year ended June 30 this year, the taxman collected 22.22tri/- out of the ceiling that was set at 22.45tri/-. The collection is an increase of 4.13tri/- from 18tri/- that the TRA had mobilized in the past financial year, 2020/21.
A statement issued yesterday by the TRA Commissioner General Alphayo Kidata has it that this year’s collections are equivalent to an increase of 22.77 per cent in the quarter four of the financial year 2021/22.
Mr Kidata also attributed the positive revenue collection trend to strengthened systems following directives issued by President Samia Suluhu Hassan.
Last year, 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.
Thus, TRA 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.
He said between April and June 2022, TRA collections were recorded at 5.59 tri/- out of the target that was set at 5.30 tri/-, which is equivalent to 105.47 per cent.
“This collection was equivalent to an increase of 22.7 per cent compared to the amount that TRA bagged during the corresponding period in the financial year 2020/21,” he said.
Moreover, in June, the taxman collected 2.32tri/-, being 113.17 per cent of the target set at 2.05tri/-.
According to him, the June collection is an increase of 24.81 per cent of the amount raised in the corresponding period for the year.
Also there is a positive trend in voluntary tax remittance, improvement in provision of taxpayer education as well as settlement of tax disputes outside courts as well as the use of Electronic Fiscal Device (EFD) machines.
Mr Kidata also commended taxpayers for their support and ensuring the government collects revenue on time and according to the law, as a result of the achievement that has been recorded in the previous financial year, 2021/22.
“The collection rise is due to various measures taken, including addressing challenges facing the business community in paying tax and strengthening electronic tax systems,” he said.
He said different guidance and instructions from President Samia enabled the authority to enhance its relationship with taxpayers, resulting in the positive results that have been recorded.
“Achievements recorded in 2021/22 will be catalysts for improved performance in the current fiscal year 2022/23,” he said.
Mr Kidata was optimistic that taxpayers will continue cooperating with the authority on ensuring revenue is due on time for the country to have enough financial muscles to improve social services provision.
The TRA boss also reminded business community with average sales from 11m/- to continue using EFD machines in their transactions “Also, all business men in Kariakoo should use EFD machines regardless of their sales volume,” he noted.
Moreover, he said the Taxman will continue using Information Communication Technology (ICT) to ensure effective revenue collections.
“Also buyers have to demand for EFD receipts after buying goods and services. Also taxpayers should be submitting accurate tax returns,” he added.
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