TRA revenues on steady rise
DOMESTIC revenue collections peaked 11.78tri/- in the first three quarters of the 2017/18 fiscal year, amplifying prospects of meeting the 17tri/- target by June 30.
The three-quarter collections have surpassed by 8.46 per cent the 10.86tri/- that the Tanzania Revenue Authority (TRA) collected in the corresponding period in the 2016/2017 fiscal year. TRA is tasked to raise 17.1tri/- in domestic revenues for execution of the country’s 31.71tri/- total budget for recurrent and development expenditures.
Speaking in Dar es Salaam yesterday, TRA Director of Taxpayer Services and Education Richard Kayombo expressed confidence that the taxman will meet the target by the end of the current financial year on June 30, 2018.
“Many taxpayers settle their obligations at the end of each quarter and we expect the remaining amount to be covered at the end of the financial year. Save for September, last year, we have been recording increased revenue collections throughout,” he explained. In March, 2018, according to Mr Kayombo, TRA collected 1.54tri/- compared to 1.34trl/- which was collected in March 2017, the 14.49 per cent increase.
The TRA’s publicist attributed the improved tax collections to enhanced compliance among taxpayers coupled with cooperation from government leaders at all levels as well as registration of new taxpayers from groups of small-scale traders.
Mr Kayombo said the authority has put in place proper mechanism for dealing with grievances and payment of taxes and arrears, leading to compliance and increased revenues. “Registration of smallscale traders is now taking place in Geita Region, with issuance of Taxpayer Identification Number (TIN).
Traders are also given the platform to air grievances to help TRA improve its services,” he explained. Mr Kayombo reminded owners of buildings to observe the June 30 deadline of paying property taxes to avoid crowding TRA offices in the eleventh hour.
And in the wake of electronic payments, property owners who have paid before are not required to visit TRA offices to settle the obligations, since they can make the payments at their convenience through mobile phone services by dialing #152#00#, he elaborated. “TRA will continue to conduct public awareness campaigns and registering petty traders,” he stated.
Available statistics indicate that for the first half of 2017/2018 financial year, spanning July to December, 2017, TRA collected 7.87tri/- , the 8.45 per cent increase from 7.27tri/- recorded in the corresponding period in 2016/2017 fiscal year. In December, last year, TRA collected 1.66tri/- as compared to 1.41tri/- collected in December, 2016, representing the 17.65 per cent increase.
Tax collections in November 2017 stood at 1.26tri/- against 1.12tri/- in November 2016. In the period under review, it was only in September, 2017 that revenue collection stood at 1.34trl/- which was 2.37 per cent below the 1.37tri/- collected in corresponding period in 2016.
In the start of financial year 2017/2018 in July, last year, collections by TRA stood at 1.1tri/-, while in August it increased to 1.2tri/-. During the previous fiscal year 2016/2017, Mr Kayombo said the authority had collected 34bn/- countrywide in property tax.
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