Tanzania Daily News (Dar es Salaam)

7 October 2012

Tanzania: Minister Urges TRA to Educate Public on Tax Compliance

Photo: The Daily News
Tanzania Revenue Authority Commissioner Harry Kitilya (file photo)

Moshi — DEPUTY Minister for Finance, Ms Saada Mkuya Salum has called on the Tanzania Revenue Authority (TRA) management to mobilize the people in demanding receipts for every purchase made to maximize tax collection.

Addressing TRA senior officials at the Kilimanjaro regional TRA office during her tour of the region on Friday, the minister said the region should play a pivotal role in mobilizing resources and therefore the need by TRA to persuade traders to use the electronic fiscal devices which produce receipts after every transaction.

"TRA should aggressively embark on civic education to its potential taxpayers so that they maintain maximum tax compliance," said the Deputy Minister.On tax evasion, Ms Salum warned that her ministry will not tolerate TRA workers who collude with unscrupulous traders to smuggle goods to neighbouring countries through unauthorized routes and thereby deny the government of statutory levies.

She also urged TRA employees to serve their clients promptly and efficiently to uphold its vision and mission.

The Deputy Minister also urged TRA to be creative by exploring other new revenue sources, so as to widen tax revenue base to further boost social services delivery.

Earlier, TRA Regional Manager, Mrs Patience Minga told the Deputy Minister that in 2011/12 fiscal year, TRA in Kilimanjaro region collected 77.2bn/- in statutory revenue, which was 93.3 per cent of the projected collection of 82.2bn/-.

She explained that of the total collected revenue, 24.3bn/- was raised through direct taxes which was 104 per cent of the budgeted 23.1bn/- while 12.6bn/- was realized through indirect taxes which was 87 per cent of the earlier budgeted 14.4bn/-, adding that in total direct and indirect taxes brought in 36.9bn/- which was 97 per cent of the proposed budget of 37.6bn/-.

Mrs Minga informed the Deputy Minister that during the same period, Customs and Excise Duty Department brought in 40.2bn/- in revenue, which was 90 per cent of the earlier budgeted 44.5bn/-. She added that Holili Border Post contributed 84.25 per cent of all customs revenue collections in the region.

The remaining customs posts at Tarakea, Rongai, Kilimanjaro International Airport and Moshi contributed 11.1 per cent of all customs income for the period under review, adding that Tarakea post and Rongai mini-post were under supervision of Holili.

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