The Tanzania Revenue Authority (TRA) achieved significant milestones in tax collection during the 2024/25 fiscal year (July 2024 – June 2025), reflecting enhanced administrative efficiency, taxpayer compliance, and technological advancements.
Key Highlights
Total Collection: TZS 32.26 trillion, exceeding the target of TZS 31.05 trillion (103.9% performance rate).
Annual Growth: 16.7% increase from TZS 27.64 trillion in 2023/24.
Quarter 4 (April – June 2025): Collected TZS 8.22 trillion against a target of TZS 7.84 trillion (104.8% performance, 15.8% growth from Q4 2023/24).
Monthly Achievements:
Consistently surpassed monthly targets for 12 consecutive months, a record since TRA’s establishment in 1996.
Average monthly collection: TZS 2.69 trillion, the highest in TRA history.
Peak collection: TZS 3.58 trillion in December 2024.
Major Milestones:
Exceeded the annual target for the first time since 2015/16.
Recorded the highest single-month collection in December 2024.
Monthly Collection Breakdown (FY 2024/25)
Month
2023/24 Collection (TZS Trillion)
2024/25 Target (TZS Trillion)
2024/25 Actual (TZS Trillion)
Performance (%)
Growth (%)
July
1.94
2.25
2.35
104.5%
21.1%
August
2.01
2.30
2.42
105.5%
20.4%
September
2.62
2.88
3.02
104.7%
15.0%
October
2.15
2.47
2.65
107.4%
23.6%
November
2.14
2.42
2.50
103.4%
16.6%
December
3.05
3.46
3.58
103.3%
17.3%
January
2.12
2.38
2.42
101.7%
13.8%
February
2.02
2.26
2.27
100.2%
12.2%
March
2.49
2.79
2.84
101.9%
14.2%
April
1.97
2.22
2.27
102.1%
15.3%
May
2.22
2.44
2.53
103.8%
14.1%
June
2.91
3.19
3.42
107.4%
17.5%
TOTAL
27.64
31.05
32.26
103.9%
16.7%
Revenue Forecast for FY 2025/26
The TRA has set a target of TZS 36.066 trillion for the 2025/26 fiscal year, reflecting an anticipated growth of 11.8% from 2024/25. This ambitious target is supported by:
Continued taxpayer education and compliance initiatives.
Deployment of modern tax systems (IDRAS, TANCIS).
Strengthened cooperation with business communities.
Enhanced staff performance monitoring and accountability.
Projected Monthly Targets for 2025/26
Month
Projected Target (TZS Trillion)
Projected Growth Rate (%)
July
2.55
8.5%
August
2.65
9.5%
September
3.30
9.3%
October
2.90
9.4%
November
2.75
10.0%
December
4.00
11.7%
January
2.70
11.6%
February
2.50
10.1%
March
3.10
9.2%
April
2.50
10.1%
May
2.85
12.7%
June
3.90
14.0%
TOTAL
36.07
11.8%
Implications for Tanzania’s Economic Development (2025/26 Budget)
The TRA’s strong revenue performance in 2024/25 and the optimistic forecast for 2025/26 are critical for funding Tanzania’s TZS 56.49 trillion budget for 2025/26, which aims to achieve 6% GDP growth and aligns with the Third Five-Year National Development Plan (2021/22–2025/26) and Vision 2025. Below are the key implications for economic development:
1. Strengthened Fiscal Capacity
Domestic Revenue Mobilization: The TRA is projected to collect TZS 36.066 trillion in 2025/26, contributing significantly to the budgeted TZS 38.9 trillion in domestic revenues (70.1% of the total budget). This reduces reliance on external financing, which is expected to contribute TZS 16.02 trillion (including grants and loans).
Fiscal Discipline: The TRA’s consistent overperformance (103.9% in 2024/25) and a controlled budget deficit (TZS 30 billion in January 2025) reflect improved tax administration and fiscal management, enabling sustainable funding for development projects.
Reduced External Debt Dependency: With domestic revenue covering over 70% of the budget, Tanzania is moving toward greater self-reliance, despite an external debt of $32.89 billion in September 2024.
2. Support for Flagship Infrastructure Projects
The TRA’s revenue surplus supports the completion of strategic projects outlined in the 2025/26 budget, including:
Standard Gauge Railway (SGR): Enhancing transport infrastructure to boost trade and regional connectivity.
Julius Nyerere Hydropower Project (2,115 MW): Increasing electricity production to support industrial growth.
Ruhudji (358 MW) and Rumakali (222 MW) Hydropower Plants: Expanding energy access for economic activities.
Liquefied Natural Gas (LNG) Project: Positioning Tanzania as a regional energy hub.
John Magufuli Bridge (Kigongo-Busisi): Improving domestic and cross-border connectivity.
These projects drive industrial capacity, competitiveness, and job creation, aligning with the budget’s theme of “Inclusive Economic Transformation through Strengthening Domestic Revenue Mobilization.”
3. Economic Growth and Job Creation
GDP Growth: The 2025/26 budget targets 6% GDP growth, building on 5.5% growth in 2024 (TZS 156.6 trillion GDP). The TRA’s revenue performance supports investments in key sectors like agriculture (26% of GDP), construction (13%), and mining (10%), which are critical for economic expansion.
Job Creation: The budget aims to create employment opportunities, with 41,117 jobs projected from $3.7 billion in registered investment projects (January–May 2025). Strong tax revenue enables funding for human capital development, including education and health initiatives.
Private Sector Growth: Improved tax compliance and a 20% annual increase in private sector credit indicate robust business activity, further supported by tax reforms like VAT exemptions for farmers, producers, and clean energy.
4. Social and Human Capital Development
Health and Education: The 2025/26 budget allocates funds for training 28,000 health workers, expanding specialist services to 9 referral hospitals, and revitalizing pharmaceutical production (e.g., ARV manufacturing in Arusha). Education investments focus on skills development to support industrialization.
Elections and Social Services: Significant allocations for the 2025 general elections and social welfare programs ensure inclusive growth, funded primarily through domestic revenue.
5. Digital and Technological Advancements
Tax Systems: The deployment of modern systems like IDRAS and TANCIS has enhanced tax collection efficiency, contributing to the TRA’s record performance. These systems are expected to sustain revenue growth in 2025/26.
Digital Economy: The budget supports ICT growth (projected at 13.5% by 2026), including over 400 communication towers in rural areas and the National Digital Economy Strategic Framework 2024–2034, fostering digital inclusivity and economic transformation.
6. Challenges and Risks
Tax Base Expansion: Tanzania’s tax-to-GDP ratio (14.9% in 2024/25) remains below the Sub-Saharan Africa average (18.6%), indicating a need to broaden the tax base, particularly in agriculture and the informal economy.
Global and Regional Risks: Potential global economic slowdown, geopolitical tensions, and the 2025 general elections may dampen investment and growth.
The TRA’s exceptional performance in 2024/25, with a record-breaking TZS 32.26 trillion collected, underscores Tanzania’s progress in domestic revenue mobilization. The forecasted TZS 36.066 trillion for 2025/26 will play a pivotal role in funding the TZS 56.49 trillion budget, supporting infrastructure, industrialization, and social development. By reducing reliance on external financing and fostering inclusive growth, Tanzania is poised to achieve its 6% GDP growth target and advance toward Vision 2050. However, addressing challenges like the narrow tax base and global economic uncertainties will be critical to sustaining this trajectory.
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)
