Tanzania: Government in New Revenue Collection Drive

LOCAL Government Authorities (LGAs) have received yet another boost after the government on Wednesday handed over about 7,227 Point of Sale (POS) machines, which are expected to double internal revenue collections and surpass the initial target.

The Minister of State, President's Office, Regional Administration and Local Government (RALG), Selemani Jafo handed over the equipment to Regional Administrative Secretaries, Town, District, Municipal and City Executive Directors in Dodoma, expressing optimism that the devices were yet another milestone in the country's revenue collection endeavour.

Basically, the government set a target of collecting 765bn/- from LGAs during the 2019/2020 Financial Year, and as of December 2019, about 356bn/- had been collected (an equivalent of 46.5per cent), according to Mr Jafo.

This means, having over 7,000 POS machines that were handed over to 185 town, district, municipal and city councils countrywide, the expectations are high that revenue collections by LGAs will soar up considerably.

"This is a new revolution to the country's financial plans and we decided to distribute these machines to LGAs so that we can be able to make a thorough assessment on how revenue is collected as well as identifying Accounting Officers who will fail to execute their responsibilities," said Mr Jafo.

POS is the time and place where a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer (which may be a cash register printout), and indicates the options for the customer to make payment.

It is also the point at which a customer makes a payment to the merchant in exchange for goods or after provision of a service.

After receiving payment, the merchant may issue a receipt for the transaction, which is usually printed but can also be dispensed with or sent electronically.

According to financial experts, POS is often referred to as the point of service because it is not just a point of sale but also a point of return or customer order.

Businesses are increasingly adopting POS systems, and one of the most obvious and compelling reasons is that a POS system does away with the need for price tags.

During the meeting, the minister expressed his dismay over poor performance in some District Councils, adding that he was expecting next week to release a list of those that were performing well at the same time releasing a list of those that were still below the target.

According to Mr Jafo, there were LGAs that until December last year collected revenue below 20 per cent, a move that was a clear indication, they would not meet their target.

The government directed that every authority should collect up to 90 per cent during this financial year.

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