By Benny Mwaipaja, Zanzibar
Finance Minister Ambassador Khamis Mussa Omar has praised the Tanzania Revenue Authority (TRA) for its strong revenue collection performance, expressing confidence that the tax agency can exceed its ambitious target of more than TSh42 trillion in the 2026/27 financial year.
Ambassador Omar said the target was achievable through continued cooperation between the Government, TRA and taxpayers, following a strong start to the financial year in July.
He made the remarks in Kizimkazi, Zanzibar, during the laying of the foundation stone for a new TRA office building whose construction is expected to cost TSh3.6 billion to its completion.
TRA Commissioner General Yusuph Mwenda said the authority collected more than TSh3.245 trillion in July, against a monthly target of TSh2.971 trillion. The performance represented 109 percent of the target and 21 per cent growth compared with the corresponding period.
“Under your leadership as Minister of Finance, and with the cooperation of taxpayers, we assure you that we will exceed that target,” Mr. Mwenda said, describing the July performance as a strong start to the new financial year.
The Commissioner General attributed the improved collection performance to close cooperation among the Government, Parliament and taxpayers.
He also disclosed that TRA collected TSh325 billion during July for direct transfers to 11 infrastructure funds supporting projects in areas including roads, water and tourism. The amount represented about 70 per cent of the relevant collections, according to the authority.
Bringing tax services closer to businesses
The Kizimkazi office is being constructed by Chinese contractor CRJE as part of a nationwide programme to build 49 TRA offices at a combined cost of more than TSh32 billion.
The investment is intended to improve the working environment for tax officials while bringing tax services closer to taxpayers and businesses.
Ambassador Omar said the Government’s broader objective was to strengthen domestic revenue mobilisation and reduce reliance on external financing.
For the 2026/27 financial year, he said the Government planned to finance more than 74 per cent of its activities from domestic resources.
The new TRA offices, he added, formed part of efforts to improve service delivery, make it easier to conduct business and strengthen revenue collection. Increased domestic revenues would, in turn, support development spending on roads, energy, water, healthcare and education.
The Minister also directed TRA to work closely with the Zanzibar Revenue Authority (ZRA) to ensure that both institutions make effective use of the new and existing office infrastructure in Zanzibar.
Such cooperation, he said, would enable taxpayers to access services more easily and avoid unnecessary administrative hurdles.
Mr Mwenda pledged that TRA would implement the directive.
Government calls for voluntary tax compliance
Ambassador Omar urged businesses and members of the public to meet their tax obligations on time, in full and voluntarily.
He said paying taxes should be regarded as a civic responsibility and a source of pride, while assuring the business community that the Government would continue working with them to improve tax services and address challenges affecting compliance.
The call was echoed by South District Commissioner for the Southern Region, Othman Ali Maulid, who urged TRA and ZRA to maintain efficient revenue collection while prioritising quality services.
He also encouraged the two authorities to listen more closely to the concerns of businesses and citizens.
Representing Zanzibar’s hotel and tourism businesses, Henry Kaunda thanked TRA and ZRA for working with the private sector to resolve tax-related challenges.
He said the engagement had contributed to greater voluntary compliance and called for continued taxpayer education, particularly among businesses in the tourism and hospitality sectors. The Government’s confidence in TRA comes as Tanzania seeks to broaden its domestic revenue base and strengthen the role of locally generated income in financing development. The authority’s July performance has provided an early indication of the scale of the task ahead as the country pursues its TSh42 trillion-plus revenue target for 2026/27.
