Tax Revenue Collections Overview During the review period, tax revenue collections in Tanzania reached TZS 6,511.7 billion, which is 95.3% of the target. This performance was driven by several factors, including increased imports of merchandise, intensified use of electronic fiscal devices, improved economic activities, and enhanced tax compliance due to public awareness campaigns. A notable […]
Tax Revenue Collections Overview
During the review period, tax revenue collections in Tanzania reached TZS 6,511.7 billion, which is 95.3% of the target. This performance was driven by several factors, including increased imports of merchandise, intensified use of electronic fiscal devices, improved economic activities, and enhanced tax compliance due to public awareness campaigns. A notable overperformance was observed in the South-Eastern zone, primarily due to the government's decision to route cashew nut exports through Mtwara port instead of Dar es Salaam port. Dar es Salaam zone was the dominant contributor, accounting for 89% of the total tax revenue collections.
Detailed Zone-Wise Tax Revenue Performance
Zone
Mar-23 Actual (TZS Billion)
Dec-23 Actual (TZS Billion)
Mar-24 Target (TZS Billion)
Mar-24 Actual (TZS Billion)
Actual to Target Ratio (%)
Percentage Change (Mar-23 to Mar-24)
Percentage Share (Mar-24)
Central
96.0
82.5
80.5
84.2
104.6
-12.3
1.3
Dar es Salaam
5,088.5
6,435.4
6,136.5
5,798.2
94.5
13.9
89.0
Lake
143.4
127.8
109.3
116.0
106.2
-19.1
1.8
Northern
372.0
372.7
389.8
367.9
94.4
-1.1
5.6
South Eastern
43.1
95.7
32.7
57.0
174.4
32.3
0.9
Southern Highlands
86.9
91.2
84.6
88.3
104.4
1.7
1.4
Total
5,829.9
7,205.3
6,833.4
6,511.7
95.3
11.7
100.0
Key Observations
Central Zone:
Collected TZS 84.2 billion against a target of TZS 80.5 billion, achieving 104.6% of the target.
This represents a 12.3% decrease from the previous year.
Dar es Salaam Zone:
Collected TZS 5,798.2 billion against a target of TZS 6,136.5 billion, achieving 94.5% of the target.
This zone saw a 13.9% increase in revenue compared to the previous year, maintaining its dominance with an 89% share of total collections.
Lake Zone:
Collected TZS 116.0 billion against a target of TZS 109.3 billion, achieving 106.2% of the target.
Revenue decreased by 19.1% compared to the previous year.
Northern Zone:
Collected TZS 367.9 billion against a target of TZS 389.8 billion, achieving 94.4% of the target.
This zone experienced a slight decrease of 1.1% from the previous year.
South-Eastern Zone:
Collected TZS 57.0 billion against a target of TZS 32.7 billion, achieving 174.4% of the target.
Revenue increased by 32.3%, partly due to the shift of cashew nut exports to Mtwara port.
Southern Highlands Zone:
Collected TZS 88.3 billion against a target of TZS 84.6 billion, achieving 104.4% of the target.
This zone saw a 1.7% increase in revenue compared to the previous year.
Overall Performance:
Total tax revenue collections amounted to TZS 6,511.7 billion, which is 95.3% of the target.
There was an overall increase of 11.7% in tax revenue collections compared to the previous year.
Tax Revenue Collections and Economic Development in Tanzania
The tax revenue collection data suggests that Tanzania is on a positive economic trajectory. The increase in imports, improved tax compliance, technological advancements, and regional economic activities all point to robust economic growth. The government’s efforts to modernize tax collection and promote economic activities in different regions are yielding positive results, contributing to Tanzania's overall economic development. However, there are still challenges that need to be addressed to ensure balanced growth and sustained economic progress across all regions.
Economic Growth and Increased Imports:
Increased Imports of Merchandise Goods: The rise in imports indicates growing domestic demand for goods, suggesting economic expansion and increased consumer purchasing power. This growth in imports likely resulted from improved economic activities, indicating a thriving economy.
Technological Advancements:
Intensified Use of Electronic Fiscal Devices (EFDs): The adoption of EFDs reflects technological advancement and modernization in the tax collection process. This not only increases efficiency but also reduces tax evasion, contributing to higher revenue collections.
Improved Tax Compliance:
Public Awareness Campaigns: Continuous public awareness campaigns have improved tax compliance. Enhanced compliance indicates that businesses and individuals are increasingly adhering to tax laws, which is essential for sustainable revenue growth.
Regional Economic Activities:
Dar es Salaam's Dominance: Accounting for 89% of tax revenue collections, Dar es Salaam remains the economic hub of Tanzania. Its significant contribution reflects the concentration of business activities and economic opportunities in the city.
South-Eastern Zone Performance: The outstanding performance of the South-Eastern zone, driven by the shift of cashew nut exports to Mtwara port, indicates regional economic development. This shift has likely spurred economic activities in the region, leading to increased tax revenue.
Diversification of Economic Activities:
Cashew Nut Export Shift: The decision to route cashew nut exports through Mtwara port instead of Dar es Salaam port suggests efforts to diversify economic activities and develop other regions. This can lead to more balanced economic development across the country.
Challenges and Opportunities:
Variations in Regional Performance: The varying performance across regions highlights challenges and opportunities for targeted economic policies. For instance, the Lake zone's significant decrease in revenue suggests the need for focused interventions to boost economic activities and tax compliance.
Overall Performance and Growth: Despite some regional variations, the overall tax revenue performance is strong, with an 11.7% increase from the previous year. This growth is a positive indicator of Tanzania's economic resilience and development.
