Dar es Salaam. The International Monetary Fund (IMF) has commended the Tanzania Revenue Authority (TRA) for strengthening tax administration and improving engagement with taxpayers, saying the reforms are helping to create a more conducive environment for trade and investment.
The remarks were made during a meeting in Dar es Salaam between an IMF delegation led by Mr Thabo Letjama and TRA management headed by Commissioner General Yusuph Mwenda. The two sides discussed tax administration reforms and continued cooperation.
The IMF delegation praised TRA's efforts to improve tax administration while facilitating business and investment.
"We are satisfied with TRA's performance and commend the authority for continuing to strengthen tax administration while facilitating trade and investment in Tanzania," Mr Letjama said.
He also lauded TRA's taxpayer engagement initiatives, saying they have contributed to a more collaborative tax environment.
"We appreciate TRA's close engagement with taxpayers and look forward to strengthening our cooperation in promoting trade, investment and effective tax administration," he said.
Mr Mwenda said TRA's strategy of strengthening relationships with taxpayers had significantly increased voluntary tax compliance, contributing to higher domestic revenue collection.
"We have continued to strengthen our relationship with taxpayers across the country, which has significantly increased voluntary tax compliance and boosted tax collections," he said.
He said the authority was also expanding the tax base by registering new taxpayers while ensuring businesses and other economic activities operate in a supportive tax environment.
Mr Mwenda said TRA was modernising tax administration through digital platforms, including the Integrated Domestic Revenue Administration System (IDRAS) for domestic taxes and the Tanzania Customs Integrated System (TANCIS) for customs operations.
"We will continue working closely with the IMF to further improve tax administration, including ensuring the timely payment of Value Added Tax (VAT) refunds to eligible taxpayers," he said.
