Tanzania: TRA Faces Uphill Task in Tax Collection

TANZANIA Revenue Authority (TRA) faces an uphill task of fetching 9.9trl/- before the expiry of 2019/2020 financial year in June, the authority's Commissioner General Dr Edwin Mhede said on Thursday.

Dr Mhede revealed this when gracing the large taxpayer's seminar held in Dar es Salaam, saying the amount (9.9tril/-) would help the authority achieve its set annual target of collecting 19.1tril/-.

He urged taxpayers to declare taxes honestly and pay timely as they are key partners in achieving the collection target.

"The reason for making this appeal is not for the TRA to take credit but the fact is the credits go to the taxpayers because they're the ones paying taxes," he noted.

In a speech read on his behalf by the Deputy Commis sioner General Msafiri Mbibo, Dr Mhede told the taxpayers that the annual collection target will only be achieved through transparency from both players, coupled with realistic tax system.

Dr Mhede asked the business community including the large taxpayers to observe and adhere to the tax compliance areas that call for timely filing of returns, remittance of due taxes, confirmation of due taxes, extending cooperation to the officers during field and desk audits as stipulated in the tax administration act.

He said the government intends to have a tax system that does not cause a tax burden to the business community and one that would not erode the tax base and wealth created by the business community.

Dr Mhede urged tax law loyalty by the business community.

In the first half of the current fiscal year, the TRA collected 9.19tril/- (96.5 per cent) out of the 9.52tril/- set target.

Dr Mhede, said TRA appreciated the taxpayers' compliance and moral support for the impressive tax collection performance.

"TRA is proud of you and believes that you will pay your taxes in the remaining period voluntarily to clear the recorded deficit so that we can achieve the annual target at the end of the financial year," he said.

The Commissioner of Large Taxpayers Mr Alfred Mregi said the large taxpayers' business community is one of the TRA valuable departments in the collection of the country's revenue.

He said in this fiscal year, the department has set an annual target of 7.96trl/- 41.4 per cent of the total target of the TRA annual target.

The large taxpayers department according to Mr Mregi, hosts the country's most prominent business from various sectors including mining, oil and gas, commercial banks, telecoms, hospitality, manufactures, transporters among other sectors.

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