TANZANIA'S REVENUE SOARS BY 78%: STRATEGIC REFORMS FUEL RECORD GROWTH

Over the past four years, Tanzania's revenue collection has experienced a significant 78% increase, attributed to comprehensive reforms within the Tanzania Revenue Authority (TRA) under President Samia Suluhu Hassan's 4Rs philosophy—Reconciliation, Reforms, Resilience, and Rebuilding.

In the eight-month period from July 2024 to February 2025, TRA collected 21.2 trillion Tanzanian shillings, surpassing the targeted 20.42 trillion shillings and achieving a 104% success rate. This marks a substantial rise from the 11.92 trillion shillings collected during the same period in the 2020/2021 financial year, prior to President Samia's tenure.

Key factors contributing to this growth include:

• Professional Tax Collection and Expanded Tax Base: TRA emphasized professionalism and broadened the tax base, aligning with President Samia's directives.

• Enhanced Business and Investment Environment: Collaborations with the Tanzania Investment Centre (TIC) led to improvements in the business climate and reductions in bureaucratic hurdles.

• Increased VAT Refunds: VAT refunds escalated from 92.37 million shillings in the first eight months of 2020/2021 to approximately 1.2 trillion shillings in the same period of 2024/2025, reflecting enhanced efficiency.

• Investment in ICT: Upgrades to tax management systems have streamlined processes, bolstering revenue collection and settlements.

• Workforce Expansion: TRA's staff increased by 2,240 over four years, totaling 6,989 employees by March 2025, with plans to recruit an additional 1,596 by June 2025 to further enhance service delivery.

These strategic measures have collectively strengthened Tanzania's financial sector, positioning the country for sustained economic growth.