Tax Revenue Collections Factors Contributing to Performance Zone-wise Performance Performance by Zone (in Billions of TZS): Zone Dec-22 Sep-23 Dec-23 Actual to Target Ratio Percentage Change Percentage Share Central 210.2 171.4 84.3 82.5 97.9 1.1 Dar es Salaam 5,608.1 5,664.5 6,555.3 6,435.4 98.2 89.3 Lake 194.4 127.4 139.1 127.8 91.9 1.8 Northern 387.3 466.9 433.8 […]
Tax Revenue Collections
Tax revenue collections for the quarter ending December 2023 were largely in line with the targets.
Total tax revenue amounted to TZS 7,205.3 billion, which was 98.3 percent of the target.
Factors Contributing to Performance
Increased Imports: Imports of merchandise goods increased, contributing to the overall tax revenue.
Use of Electronic Fiscal Devices: There was intensified use of electronic fiscal devices, which likely improved tax collection efficiency.
Expanding Economic Activities: The economy saw expansion, which naturally led to higher tax revenues.
Improved Tax Compliance: Continuous public awareness campaigns to enhance tax collection resulted in improved tax compliance.
Zone-wise Performance
Dar es Salaam Dominance: Dar es Salaam zone remained dominant, accounting for 89.3 percent of tax revenue collections.
South Eastern Zone Exceptional Performance: The South Eastern zone performed exceptionally, surpassing the target by 191 percent. This was mainly due to:
Rise in collection of raw cashew export levy following the Government’s decision to use Mtwara port.
Performance by Zone (in Billions of TZS):
Zone
Dec-22
Sep-23
Dec-23
Actual to Target Ratio
Percentage Change
Percentage Share
Central
210.2
171.4
84.3
82.5
97.9
1.1
Dar es Salaam
5,608.1
5,664.5
6,555.3
6,435.4
98.2
89.3
Lake
194.4
127.4
139.1
127.8
91.9
1.8
Northern
387.3
466.9
433.8
372.7
85.9
5.2
South Eastern
46.9
26.2
32.9
95.7
291.0
1.3
Southern Highlands
96.7
74.8
84.2
91.2
108.3
1.3
Total
6,543.6
6,531.2
7,329.5
7,205.3
98.3
100.0
Tanzania's zonal economic development:
Regional Disparities: There are significant regional disparities in economic activity and tax revenue generation. Dar es Salaam, as the economic hub, contributes the most to tax revenue, while other regions lag behind.
Dar es Salaam Dominance: Dar es Salaam remains the dominant economic zone, accounting for the majority of tax revenue collections (89.3%). This indicates its strong economic activity, likely driven by trade, commerce, and other business activities.
South Eastern Zone: The South Eastern zone's exceptional performance, particularly in surpassing its tax revenue target by 191%, suggests that this region may be experiencing significant economic growth or benefiting from specific policies or investments, such as the decision to use Mtwara port for cashew exports.
Other Zones: While some zones, like the Central and Southern Highlands zones, are still contributing to tax revenue, their contributions are relatively smaller compared to Dar es Salaam and, to some extent, the South Eastern zone.
Improving Economic Activity: The overall positive performance and the fact that most zones met or exceeded their targets indicate a general trend of improving economic activity across Tanzania. Factors such as increased imports, improved tax compliance, and expanding economic activities contribute to this growth.
Challenges: Despite overall positive performance, some zones, like the Northern and Lake zones, have not met their tax revenue targets, indicating potential challenges or slower economic growth in these regions.
