Tanzanian tax payers and collectors alike are responding positively to President Magufuli’s ‘boost internal revenue’ tune.
The President of Tanzania, H.E. John P. Magufuli would like internal revenue to contribute the bigger half of Tanzania’s 31.7tri/- Tshilling budget and to do so, the Tanzania Revenue Authority (TRA) is expected to collect at least 17.1tri/-Tshillings (approx. $7.5 billion USD) by June 30.
Having surpassed collections at the same period last year, the authority is well underway to meeting the target.
As of March 2017, tax collection was up 14.49 percent compared to the same period last year.
The total for the first three quarters of the year is reported at 11.78tri/- an 8.46 percent top off compared to last year’s 10.86tri/- collected at the reciprocal time.
Behind The Success
Richard Kayombo , the TRA Director of Taxpayer Services and Education has attributed the successful collection to three aspects:
· Improved compliance among taxpayers
· New businesses
· Local Government Authorities’ Cooperation
Mr Kayombo did not go without complimenting his own team for a job well done noting that TRA staff has performed exceptionally.
He also said TRA now ‘listens more’ and responds to the customers’ grievances that previously would deter tax payers from their legal duty.
Further still, the Director said TRA has eased the registration process for new businesses making it smoother and faster with limited bureaucratic huddles if any.
He also attributed the improved compliance among taxpayers to TRA’s improved collection mechanisms like mobile and points of sale payments.
In this regard, he cited the fast drawing Building Tax deadline (June 30) and urged all property owners to make use of the readily available, efficient and safe mobile payment systems; to go ‘online’ rather than stand ‘inline’ at the offices.
TRA mobile phone services can be accessed by dialing #152#00# and following the instructions provided. It is simple, convenient, safe and fast, he said.
TRA begun the 2017/2018 financial year last July at 1.1tri/- and with a positive note edged up to 1.2tri/- by August. Then came the dull month, which however was short lived.
When September came, the authority suffered a 2.37 percent fall in collections compared to the same period the previous year; 2016’s 1.37tri/- vs 2017’s 1.34trl/- but that was the last time TRA recorded a drop in collections.
From that point to date, TRA’s tax collection has been an upward trend. November last year collections hit 1.26tri/- topping the 2016’s 1.12tri/- during the same month.
December saw another 17.65 percent increment, collections hitting1.66tri/- up from 2016’s 1.41tri/- collections.
Available statistics indicate that for the first half of 2017/2018 financial year, spanning July to December, 2017, TRA collected 7.87tri/- , the 8.45 per cent increase from 7.27tri/- recorded in the corresponding period in 2016/2017 fiscal year.