A statement released recently by Said Ali Mohamed, Acting Commissioner General of Zanzibar Revenue Authority (ZRA), informs that the target for the month was to collect 75.501bn/- but actual collection stood at 75.582bn/- which is equivalent to success rate of 100.11 percent. This achievement reflects the effective strategies implemented by the Zanzibar Revenue Authority.
“This is a milestone compared to our revenue collection for December 2023 which amounted to 63.513bn/-, equivalent to an increase of 12.069bn/- or 19 percent,” reads the advisory.
This commendable performance by the Zanzibar Revenue Authority showcases their commitment to enhancing revenue collection in the region.
The Zanzibar Revenue Authority has proven its capability to meet and exceed targets, ensuring funds for crucial government projects.
This success further underscores the role of the Zanzibar Revenue Authority in boosting the economy of the islands.
Also, in the second quarter of 2024/25, ZRA set a target of collecting 225.171bn/- but the taxman managed 228.98bn/- which is an increase of 38.141bn/- which is equal to 20.09 percent.
According to the Zanzibar Revenue Authority, these results are indicative of a broader trend in improving fiscal responsibility.
The collaboration between the Zanzibar Revenue Authority and various stakeholders has fostered a culture of compliance and accountability.
In the first half of 2024 (July-December), ZRA set a target of collecting 419.202bn/- but actual collection stood at 429.033bn/- which is 102.34 percent.
In comparison, revenue collection for the same period in 2023 stood at 351.769bn/-, resulting in an increase of 77.269bn/- which is equivalent to 21.96 percent.
“Prudent implementation of sound economic policies by President of the United Republic of Tanzania Samia Suluhu Hassan and Zanzibar President Dr Hussein Ali Mwinyi significantly contributed to the success,” Mohamed said.
Another factor that contributed to the milestone, according to Mohamed, is improved relations between ZRA and its partners which led to a boost in tax compliance in the isles.
“The improved relations also led to a significant increase in withholding tax by agents implementing various development projects across Zanzibar,” he said.
Business activities between Unguja and Pemba have also shot up, especially following the upgrade of ports especially Mkoani port on the Pemba side, resulting in more money in circulation hence more taxes.
“Increased use of our modern tax collection system IDRAS as well as electronic receipt system VFMS also made significant contribution to our success,” sad Mohaned.
“We also enhanced our engagement with taxpayers, reminding them to honour their tax obligations and many responded. Our taxpayer education and awareness drives helped a lot.”
ZRA has also announced strategies to maintain the pace in the second half running from January to June 2025 in the 2024/2025 financial year.
The taxman plans to target various taxpayer groups with tax education so that they understand their obligation to pay tax to enable the government continue implementing various development projects.
“We are set to strengthen our inspection units to deter some unscrupulous traders who are bent on making undue profits at the expense of citizens,” he said.
“We will continue visiting taxpayers at their places of business to listen to their challenges and act on the same, including prompt resolution of tax complaints and disputes.”
ZRA also seeks to offer trade facilitation on legal issues to new taxpayers to enable them meet set requirements and become taxpayers. This will go alongside tax clinics in areas with many traders so that taxpayers don’t have to visit ZRA offices. This will enable the authority to register as many traders as possible with the aim of widening the tax base.
The Zanzibar Revenue Authority aims to sustain this momentum in the coming years, positioning itself as a leader in revenue management.
Zanzibar Revenue Authority: Ensuring Tax Compliance
“We will also emphasise capacity building for our employees so that they serve diligently by prioritising professionalism and utmost customer care,” Mohamed stated.
“Voluntary tax compliance will be our top priority. To achieve this, we will engage taxpayers through various means to ensure that they fully understand why it is important to pay tax.”
Mohamed expressed appreciation to all taxpayers, attributing the success to their cooperation, appealing to them to continue with the same spirit so as to make Zanzibar a modern island economy.
“ZRA wishes all taxpayers a happy and prosperous New Year. It is our hope that in 2025, businesses will grow further and taxpayers will voluntarily honour their tax obligations.”
ZRA, also known as the Zanzibar Revenue Authority, was established under the Act No. 11 of the year 2022 as an institution for the collection of Government revenue. The Zanzibar Revenue Authority has a history dating back to the Zanzibar Revenue Board (ZRB), which was established under the Act No. 7 in 1996 and began to work officially from September 1998 until December 2022.
