Dar es Salaam. Tanzania’s revenue performance gained fresh momentum in the third quarter of the 2025/26 financial year, with the Tanzania Revenue Authority (TRA) collecting Sh9.31 trillion between January and March, well above its target of Sh8.75 trillion.
The strong outturn indicates an improving tax administration, rising compliance, and the impact of ongoing institutional reforms aimed at widening the tax base and sealing revenue leakages.
According to a statement issued by TRA Commissioner General Yusuf Mwenda, the authority surpassed its quarterly target by a significant margin, signalling growing efficiency in domestic revenue mobilisation.
“This is equivalent to an efficiency of 106.4 percent, which is a clear indication of discipline in revenue collection and the strengthening of tax management systems in the country,” said Mr Mwenda.
The performance, he noted, was anchored by a particularly strong March, during which TRA collected Sh3.58 trillion against a target of Sh3.32 trillion, translating into an efficiency rate of 107.6 percent.
February and January also posted solid results, bringing in Sh2.69 trillion and Sh3.04 trillion respectively, both exceeding their monthly targets.
The statement says, consistency across all three months points to a stable and predictable revenue stream, a key factor for government planning and budget execution.
Year-on-year, the third-quarter collections represent a 23.6 percent increase compared to Sh7.53 trillion recorded in the same period of the 2024/25 financial year.
This growth reflects both improved economic activity and stronger enforcement measures by the tax authority.
Much of the improvement, Mr Mwenda argues, has been attributed to the adoption of digital systems in tax administration, enhanced taxpayer education, and closer engagement between TRA and businesses.
Efforts to curb tax evasion have also played a critical role.
Beyond the quarterly figures, TRA’s cumulative performance for the first nine months of the financial year shows sustained progress.
Between July 2025 and March 2026, the authority collected Sh28.005 trillion, surpassing its target of Sh26.773 trillion.
This represents a growth rate of 16.5 percent, putting the authority on track to meet or potentially exceed its full-year revenue targets.
Equally notable is the efficiency of collection. TRA maintained a cost of collection ratio of 2.41 percent, meaning it continues to spend relatively little to generate higher revenues. This level of operational efficiency is often seen as a benchmark of a well-functioning tax system.
The contribution of tax revenue to the country’s Gross Domestic Product (GDP) also improved, rising to 14.1 percent from 13.7 percent previously.
This suggests that domestic resources are increasingly becoming a reliable pillar for financing development.
For the government, the improved inflows provide greater room to finance strategic projects, including infrastructure and social services.
If the current pace is maintained, the outlook for the remainder of the financial year remains positive, with the possibility of outperforming annual targets increasingly within reach.
