Boost for self-reliance goal as TRA breaks collection record

In the final quarter alone (April–June 2025), TRA mobilised Sh8.2 trillion to surpass its quarterly goal of Sh7.8 trillion.

“We have transformed from a revenue authority seen as adversarial and confrontational to one that works alongside taxpayers as partners in nation-building,” Mr Mwenda said.

He attributed the breakthrough to a renewed emphasis on taxpayer education, operational transparency and the effective implementation of President Samia Suluhu Hassan’s vision of economic resilience.

The impressive revenue collection performance, Mr Mwenda added, was also driven by vibrant growth across key sectors such as manufacturing, trade and services, which have continued to expand the tax base.

To further consolidate trust, TRA is implementing bold reforms in its audit approach—one of the most frequently criticised areas by the business community.

Notably, Mr Mwenda announced the introduction of a new audit cycle policy.

“Going forward, no taxpayer will face an audit cycle longer than two years,” he said.

Business voices echoed that sentiment on Tuesday.

Ms Mariam Othman, speaking on behalf of traders in Kariakoo, Tanzania’s busiest shopping area, welcomed the audit policy shift.

“In the past, the business community’s relations with TRA were adversarial, but the atmosphere has now improved significantly. Traders feel more appreciated and involved,” she said.

Optimism expressed by TRA aligns closely with broader government targets presented in the 2025/26 Budget.

Finance minister Mwigulu Nchemba told Parliament when tabling the plan last month that the government expects to collect Sh34.1 trillion in revenue through TRA in the new financial year, of which Sh32.31 trillion will be from tax collections and Sh1.79 trillion from non-tax sources.

These figures represent a clear message – the government is depending heavily on domestic resource mobilisation to fund its ambitions.

To that end, TRA’s momentum will be instrumental in helping the country finance its Sh57 trillion national budget.

Presenting the 2025/26 Development Plan in Parliament last month, the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, said Sh19.47 trillion (approximately 34.1 percent of the total budget of Sh57 trillion) would be  earmarked for development programmes and projects in 2025/26.

This represents a significant increase from Sh15.95 trillion (31.7 percent) allocated in 2024/25.

“Of these funds, Sh13.32 trillion will be domestically sourced, complemented by Sh6.15 trillion from various external financing sources,” Prof Mkumbo said.

He emphasised the critical role of the private sector, stating, “We also significantly aim to boost the participation and contribution of the private sector in implementing development projects through innovative and alternative financing methods, including Public-Private Partnerships (PPPs).”

According to Mr Mwenda, TRA is ready to meet the challenge.

“Our mandate is not just to collect taxes, but to do so in a way that inspires confidence, encourages compliance, and drives development,” he said.

As the new fiscal year begins, all eyes will be on how TRA balances its dual role: hitting higher targets while ensuring that the tax ecosystem becomes more transparent, efficient and inclusive.