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| TRA Commissioner General, Mr. Yusuph Mwenda. |
Dar es Salaam – July 2, 2025
In a groundbreaking achievement for Tanzania’s tax system, the Tanzania Revenue Authority (TRA) has surpassed its revenue collection targets for all 12 months of the 2024/2025 financial year — a historic first since the authority’s establishment in 1996.
Record-Breaking Performance
TRA Commissioner General, Mr. Yusuph Mwenda, announced on Tuesday that total collections reached TZS 32.2 trillion, surpassing the year’s target of approximately TZS 31 trillion. This marks a 16.7% increase compared to the previous financial year.
“For the first time, we have exceeded our revenue target in every single month of the financial year,” said Mr. Mwenda. “This is not only historic but sets a new benchmark for future performance. We are committed to doing whatever it takes to sustain this momentum.”
A Shift Toward Voluntary Compliance
Mr. Mwenda attributed the success to a strategic shift in TRA’s tax collection approach, which now emphasizes consultation, education, and voluntary compliance over enforcement.
He noted that this transformation aligns with President Samia Suluhu Hassan’s vision to foster a more taxpayer-friendly environment that builds trust and promotes compliance through dialogue.
“President Samia’s vision has been clear: engage taxpayers, don’t intimidate them,” said Mwenda. “Her approach encourages dialogue and builds trust, allowing businesses to grow while contributing their fair share.”
From Humble Beginnings to Record Figures
When TRA was founded, its annual revenue target stood at TZS 539 billion, and actual collections reached TZS 531 billion, achieving 98% of the goal. At the time, monthly collections averaged just TZS 44 billion.
In stark contrast, 2025 monthly averages exceed TZS 2.5 trillion, with September and December 2024 and June 2025 each recording collections above TZS 3 trillion.
Presidential Support Drives Institutional Growth
To support the Authority’s expanding responsibilities, President Samia approved the recruitment of 1,896 new TRA staff, boosting the workforce to nearly 7,000. This investment aims to address long-standing delays in tax audits and processing.
The president also established a Tax Reforms Commission to engage stakeholders across the economy in enhancing compliance and broadening the tax base.
Her presence at the TRA Annual Taxpayer Awards last year was hailed as a major morale boost and a strong endorsement of the voluntary tax compliance model.
Economic Expansion and Strategic Reforms
Beyond policy shifts, Mr. Mwenda credited the performance to increased economic activity at ports, airports, and along key road networks. He also pointed to population growth and enhanced administrative capacity as contributing factors.
Looking ahead, TRA aims to collect TZS 36 trillion in the 2025/2026 financial year.
Board Chair and Stakeholders React
TRA Board Chairperson, Mr. Uledi Mussa, praised the achievement, stating:
“We want to close funding gaps for strategic national projects and social services by relying more on domestic revenue. Our ambition is for TRA to become the top-performing revenue authority in Africa.”
Leaders from the private sector and professional associations also expressed their support:
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Mr. Edward Urio, President of the Tanzania Freight Forwarders Association (TAFA), congratulated TRA and pledged continued cooperation to strengthen tax compliance.
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Ms. Victoria Soka, representing the Tanzania Association of Tax Consultants (TATC), reiterated their commitment to supporting fair and broad-based tax collection.
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Ms. Melinda Muganda, from the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), emphasized the importance of voluntary compliance for business sustainability and national growth.
Stay tuned to our blog for more insights into Tanzania’s economic and fiscal progress — and how strategic leadership is transforming tax systems for national development.
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