Between July and September 2025, ZRA was tasked with collecting Sh274.073 billion but closed the quarter with Sh274.292 billion, representing a performance rate of 100.08 percent
Unguja. The Zanzibar Revenue Authority (ZRA) has exceeded its revenue collection target for the first quarter of the 2025/2026 financial year, attributing the performance to improved tax systems, stronger taxpayer engagement, and growing economic activity.
Between July and September 2025, ZRA was tasked with collecting Sh274.073 billion but closed the quarter with Sh274.292 billion, representing a performance rate of 100.08 percent.
The achievement pushed the authority’s average monthly collections from Sh80 billion last year to Sh90 billion this year. Compared to the same period in 2024/2025, ZRA’s revenue grew by Sh73.357 billion, equivalent to a 36.5 percent increase, up from Sh200.935 billion.
ZRA’s Head of Communications, Public Relations and Taxpayer Services, Makame Khamis Moh’d, said the growth reflected both economic expansion and reforms within the authority.
“Major investments in infrastructure and the expansion of social services have unlocked new economic opportunities in Zanzibar, following the implementation of sound economic policies under the Eighth Phase Government,” he said.
He added that increased taxpayer education programmes had brought the authority closer to businesses, encouraging voluntary compliance and improving trust.
On the operational side, ZRA has scaled up the use of digital platforms, including the Virtual Fiscal Management System (VFMS) for issuing electronic receipts and the Zanzibar Integrated Domestic Revenue Administration System (ZIDRAS) for revenue collection.
The authority has also intensified taxpayer monitoring and invested in staff training to enhance professionalism, accountability, and service delivery.
Looking ahead, ZRA plans to step up special compliance initiatives in the next quarter, with a focus on strengthening use of electronic fiscal devices and integrating IT systems between the authority and businesses that rely on digital platforms.
The reforms have been positively received by the business community. Traders in Unguja told The Citizen that interactions with ZRA officials are now less confrontational compared to the past.
“Nowadays, officials visit businesses and engage politely. Unlike before, when their presence felt hostile and you would even close your shop, now the environment is friendlier. So it’s no surprise to hear that collections are increasing,” said Abdi Haji, a trader at Mlandege.
