ZRA exceeds annual revenue collection target

Unguja. The Zanzibar Revenue Authority (ZRA) has exceeded its revenue collection target for the 2024/25 financial year, raking in Sh861.88 billion against a projection of Sh845.98 billion.

This represents a performance of 101.88 percent of the set target.

ZRA Commissioner General Said Athumani Kiondo announced the figures today, July 1, 2025, attributing the strong performance to intensified tax compliance campaigns and the deployment of improved systems.

“This achievement reflects significant growth in economic activities and the success of our efforts to enhance tax administration and voluntary compliance,” Mr Kiondo told reporters at a press briefing in Unguja.

Revenue collections for 2024/25 increased by 19.91 percent compared to the previous financial year, translating to an additional Sh143.12 billion. In 2023/24, the authority collected Sh718.76 billion.

During the fourth quarter alone, ZRA collected Sh194.10 billion against a target of Sh188.16 billion, achieving 103.16 percent of the projection.

“When compared to actual collections for the fourth quarter of 2023/24, which were Sh159.28 billion, we’ve recorded an increase of Sh34.83 billion, equivalent to growth of 21.87 percent,” Mr Kiondo said.

For June 2025 specifically, revenue collections reached Sh63.67 billion, surpassing the monthly target of Sh56.65 billion, representing 112.40 percent of the goal. This marks a significant rise from the Sh48.90 billion collected in June 2024 — an increase of Sh14.78 billion, or 30.22 percent year-on-year.

Mr Kiondo said the improved revenue performance was driven primarily by increased economic activity between Zanzibar and mainland Tanzania, spurred by sound government policies and leadership.

“There has been considerable investment in infrastructure and social services, alongside a general improvement in economic activities in Zanzibar, stemming from effective economic policies,” he noted.

He also pointed to enhanced tax collection strategies, particularly the adoption of modern technology and digital systems, as key contributors to the improved collections.

Plans for 2025/26

Looking ahead, the ZRA has set an ambitious revenue collection target of Sh1.257 trillion for the 2025/26 financial year.

To meet this goal, Mr Kiondo said the authority will implement several measures, including granting tax penalty waivers to taxpayers with outstanding debts arising from late or unpaid taxes.

Presenting the national budget on June 12, 2025, Minister for Finance and Planning, Dr Saada Mkuya, announced that the government would offer a 100 percent waiver on tax penalties from July 1 to December 31, 2025.

“This measure is expected to boost government revenue by Sh12.57 billion,” Dr Mkuya said during her budget address.

Mr Kiondo added that ZRA would continue rolling out public education campaigns to promote voluntary compliance and ensure taxpayers understand their obligations.

“We will sustain outreach initiatives and leverage diverse communication channels to engage different taxpayer groups,” he said.