In just nine months of the 2024/25 fiscal year, the Tanzania Revenue Authority (TRA) has collected TZS 24.05 trillion, marking a 17% increase compared to TZS 20.55 trillion collected during the same period in 2023/24. With projections showing total annual collections could exceed TZS 32 trillion, TRA’s performance now rivals the country’s reliance on external development financing — which typically stands at TZS 7–8 trillion annually from loans and grants. This growth signals that domestic revenue can progressively become a sustainable source for financing development projects, reducing dependence on foreign aid.

Revenue Collection Performance – January to March 2025 (Q3, FY 2024/25)

• Collected: TZS 7.53 trillion
• Target: TZS 7.43 trillion
• Performance: 101.32% of the target
• Growth: 13.47% compared to the same period in FY 2023/24 (which had TZS 6.63 trillion collected)

TRA exceeded the target by TZS 0.10 trillion (100 billion).

Cumulative Revenue – July 2024 to March 2025 (First 9 months)

• Collected: TZS 24.05 trillion
• Target: TZS 23.21 trillion
• Performance: 103.62%
• Growth: 17.01% compared to the same period in FY 2023/24 (TZS 20.55 trillion)

This is the highest ever 9-month collection in TRA’s history.

Historical Growth Comparison

• FY 2020/21 (Same period): TZS 13.59 trillion
• FY 2024/25 (Current period): TZS 24.05 trillion
• Growth in 4 years: 77% increase

This highlights the impact of reforms since President Samia Suluhu Hassan assumed office.

Key Drivers of Improved Revenue Collection

1. Leadership Directives

• Implementation of President Samia’s instructions to improve voluntary tax compliance.

2. Internal Improvements at TRA

• Improved staff discipline and innovation.
• Engagement with business communities and tax education.
• Deployment of the enhanced Customs Management System (TANCIS) in January 2025.
• Better enforcement of Electronic Fiscal Devices (EFDs).
• Weekend services at TRA offices (Saturday & Sunday).
• Weekly “Taxpayer Listening Day” (every Thursday).

3. Government Reforms and Environment

• Port services improvement led to increased imports/exports.
• Enhanced relations with investors.
• Rise in the number of Authorized Economic Operators (AEOs).

Focus for April – June 2025 (Q4)

• Finalization of IDRAS (Domestic Revenue System) by June 2025.
• Intensified tax education campaigns.
• Enforcement of electronic receipt issuance.
• Fair and equitable taxation (no favoritism).
• Collaboration with the Presidential Tax Review Taskforce.
• Strengthening audit and investigation units to fight tax evasion.

Tanzania’s revenue performance and how the Tanzania Revenue Authority (TRA) has improved in collecting taxes.

1. Strong Revenue Growth

• TRA collected TZS 24.05 trillion from July 2024 to March 2025.
• This is TZS 3.5 trillion more than the same period last year.
• It shows a 17% increase, which is a sign of strong economic activity and better tax compliance.

TRA is not only meeting but exceeding its targets.

2. Better Efficiency and Reforms Are Working

• TRA’s systems like TANCIS and EFD enforcement are helping track and collect taxes better.
• Opening offices on weekends and listening to taxpayers every Thursday builds trust and accessibility.

It shows that management reforms are paying off.

3. Business and Government Relationship is Improving

• The number of registered businesses and investors is going up.
• TRA is working more closely with them instead of just punishing—a shift from fear to collaboration.

4. Taxpayer Engagement is Crucial

• TRA is thanking taxpayers and encouraging patriotism.
• This signals that voluntary compliance is improving—people are paying taxes because they trust the system more.

5. Tanzania is Building a Stronger Economy

• A 77% growth in 4 years (from TZS 13.6T in 2020/21 to TZS 24.05T now) tells us:
  • There’s real momentum.
  • The government's focus on transparency, digital systems, and service delivery is helping.

🔑 In Simple Terms:

This report shows that Tanzania is collecting more tax than ever before, because:

• People are paying more willingly.
• TRA is doing a better job.
• The government is creating a good business environment.

Key Revenue Collection Figures – TRA Report (March 2025)

Could Tax Collections Alone Power Tanzania’s Development Projects?

Current Performance Shows Great Potential

From this report:

• TRA collected TZS 24.05 trillion in 9 months (July 2024 – March 2025).
• If this trend continues, TRA could collect over TZS 32 trillion by June 2025.

🧮 Estimation: If Q4 (Apr–Jun) brings another ~TZS 8 trillion → Annual Total = 24.05T + ~8T = ~TZS 32T

📉 Tanzania’s 2023/24 Budget Financing Gap (Aid + Loans)

According to past budgets:

• In 2023/24, Tanzania expected about TZS 7.26 trillion from concessional loans and grants.
• Out of a total budget of TZS 44.4 trillion, external financing accounted for ~16.4%.

🧾 So the financing gap Tanzania usually covers with aid/loans = ~TZS 7.2–8 trillion per year

🧠 What This Means

TRA already:

• Collected TZS 24.05T in just 9 months.
• Could reach TZS 32T annually soon.

If TRA can sustain and increase revenue growth:

• It can cover the same amount (or more) than what Tanzania receives from foreign aid and concessional loans.
• Example: TRA exceeding annual revenue by even just 10% = ~TZS 3T extra — halfway to the aid/loan gap.

📌 Key Considerations

Conclusion

Yes, TRA has the potential to replace or reduce Tanzania’s dependence on aid and loans, especially if:

• The current growth trend continues (13%–17% yearly),
• Reforms in tax systems and transparency are sustained,
• The government continues creating a good business and investment climate.

If Tanzania can fully fund development through its own taxes, it becomes more independent and self-reliant.