Taxman downplays 2.5pc shortfall
The TRA Commissioner General, Rished Bade.
What you need to know:
Announcing actual collections for the first time since the current financial year started, the TRA Commissioner General, Rished Bade, said between July and October, the taxman garnered Sh3.77 trillion against a target of Sh3.87 trillion.
Dar es Salaam. Tanzania Revenue Authority (TRA) said yesterday that it was on track to meet its revenue collection obligations despite registering a 2.5 per cent shortfall during the first four months of the current financial year.
Announcing actual collections for the first time since the current financial year started, the TRA Commissioner General, Rished Bade, said between July and October, the taxman garnered Sh3.77 trillion against a target of Sh3.87 trillion.
Going by the 2015/2016 budget, TRA is required to collect a total of Sh12.363 trillion to partly finance Tanzania’s Sh22.495 trillion-revenue and expenditure plan. “This collection trend gives us hope that we will garner the entire Sh12.3 trillion until the expiry of the entire financial year,” said Mr Bade. He said the 2.5 per cent shortfall was largely a result of falling prices of minerals in the world market which meant that the taxman could not be able to fetch enough revenue from the sector.
Last week, President Dr John Magufuli, who seems set to come up with the much-needed austerity measures, summoned Mr Bade, Bank of Tanzania Governor, Prof Benno Ndulu and permanent secretaries to a meeting at the State House. The President urged Mr Bade to collect enough revenue that would help him finance the multi-trillion shilling pledges he made during campaigns.
And Mr Bade said yesterday that the taxman had what it takes to collect enough revenue in line with what is in the budget books.
“I would like to assure President Magufuli that with the strategies that we are currently pursuing, we are committed towards hitting the target of Sh12 trillion within the remaining 8 months,” he said.
The strategies include zero tolerance to tax evasion and taming corruption within the tax body. Mr Bade who is former Barclays Bank Tanzania managing director, also put sluggish TRA officials on notice. “The officials who have been a liability to us will face the music….we won’t hesitate to take them to court….we all ought to adhere to the President’s motto of ‘Hapa ni kazi tuu’ (here work matters),” said Mr Bade.
