Tanzania: Taxman, Businesses Find Common Ground As Revenue Collection Rises

Dar es Salaam — A MORE cooperative relationship between taxpayers and tax collectors is emerging in Tanzania, with Agriculture Minister Daniel Chongolo saying the changing environment is helping boost revenue collection while giving businesses greater confidence.

Mr Chongolo said the shift was evident in the way taxpayers and the Tanzania Revenue Authority (TRA) were increasingly engaging with each other, describing a situation where "the taxpayer and the tax collector are meeting, and people are smiling."

Speaking at the 20th anniversary celebrations of TRA SACCOS in Dar es Salaam, the minister said the stability prevailing in the country had created a favourable environment for business growth and improved revenue collection.

He said professional tax administration was important not only for government revenue but also for creating a business environment in which taxpayers could meet their obligations while continuing to grow their enterprises.

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Mr Chongolo also linked the performance of TRA to the welfare of its employees, saying revenue officers have an important role to play in nation-building and therefore need access to quality financial services and affordable credit.

He commended TRA SACCOS for supporting employees financially and for launching the PesaCard digital system, saying technology would improve service delivery and could make the SACCOS a model for similar institutions across the country.

The SACCOS has also strengthened its financial position, with liquidity rising to an estimated 122bn/-, a development Mr Chongolo said had enabled loans to remain in circulation and helped members improve their livelihoods.

For TRA Commissioner General Yusuph Juma Mwenda, the strength of the SACCOS goes beyond providing financial services to employees.

He said financial stability had helped TRA employees work with greater peace of mind and efficiency, particularly when dealing with taxpayers and supporting businesses to fulfil their tax obligations.

Commissioner Mwenda said TRA would continue empowering its employees with the knowledge, skills and support required to carry out their responsibilities with greater accountability and professionalism.

He also thanked taxpayers for continuing to meet their tax obligations, saying their contribution remained essential to the country's development.

The event also highlighted the growing role of TRA SACCOS in supporting communities outside its core financial activities.

Kisarawe District Commissioner Petro Magoti said the SACCOS had supported vulnerable groups through various social initiatives, including assistance to people with disabilities, patients and students.

He said the institution had donated more than 200 mattresses, bed sheets, patient beds and surgical equipment, in addition to school bags and learning materials for students in need.

DC Magoti said such initiatives supported Government efforts to improve access to health and education services while demonstrating that institutions could return part of what they gained to the communities around them.

He urged more institutions to embrace such initiatives, saying social responsibility should remain an important part of institutional development.

The DC also commended TRA Commissioner General Mwenda for his role in overseeing Government revenue collection, saying TRA's responsibilities extend beyond collecting taxes to contributing to the welfare and development of citizens.

"Government revenue should be reflected in the lives of citizens. When we see, assistance being provided to schools, hospitals and vulnerable groups, we see how the contribution of institutions is returned to the community," Magoti said.

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