10 January 2019

Tanzania: Babati Revenue Collection Now Drops

BABATI Town Council has registered a drastic drop in revenue collection as the figure between July and December last year stands at only 687,359,057/-.

That was unveiled at a Babati town development stakeholders' meeting, which revealed that projection for 2018/19 was 1,811,327,616/-, meaning revenue collection was only 38 per cent of the projection.

The reason behind such a drop was divulged as the Chama Cha Mapinduzi (CCM) taking over of Babati Town Bus Station from Babati Town Council, an investment that was the main source of revenue to the latter.

Babati Town Council Economist, Hamisi Kitambi said they had relied heavily on the bus station for revenue collection and had included it in its projections for 2018/19 before it was handed over to the ruling party. It is said that it was earlier on owned by the ruling party before the council took over and the reversal was effected last year.

Presenting the 2019/20 budget plan, Mr Kitambi mentioned some revenue sources as business licences (by 74 per cent), auctions (by 77 per cent) and service levy (by 71 per cent). He mentioned sources, whose collections were reduced to zero per cent in the first half of this financial year as Babati Town Bus Stand, public toilets and sewerage services.

Speaking to stakeholders, Acting Manyara Regional Administrative Secretary (RAS), Kenneth Kaganda said the revenue collection issue must be a lasting agenda at all town council meetings. He said they must work out on all plans to have new sources of income and tell stakeholders challenges they faced to ensure council revenue increased.

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