THE Tanzania Revenue Authority (TRA) has to take a firm stance against tax evaders, given their detrimental impact on the nation's development.

Dr Mwigulu Nchemba, the Finance minister, issued this instruction when opening a five-day working session for senior TRA officials here yesterday, underlining that tax evaders hinder the country's progress. “Deal with them decisively and without fear, as the law protects you and the nation stands with you,” the minister intoned, insisting that tax evasion creates inequalities in economic activity.

TRA officials need to intensify efforts as no individual, regardless of status, is above the law, he said, describing tax evasion as unacceptable. “Do not fear criticism, as development relies on the taxes collected by the government,” he specified, asking TRA officials to adopt strategies that target habitual defaulters without disrupting businesses.
 “Closing businesses or freezing accounts discourages bank usage, complicating tax collection. Instead, focus on addressing the defaulters themselves,” he explained.

Dr. Nchemba highlighted the need to combat the use of fake electronic fiscal receipts, which contribute to revenue losses, as TRA needs to ensure that all government revenue is collected, by curbing fraudulent practices.

Fostering a positive relationship between taxpayers and tax collectors vital as there is no enmity between the two. “A good relationship will expand the taxpayer base. Taxpayers are not slaves; they only need to fulfill their duty,” he declared.

Yusuf Mwenda, the TRA commissioner general, reported that from July to December 2024, TRA surpassed its revenue collection target, obtaining 104 per cent of estimates.

It heightened its monthly targets through cooperation with compliant traders rather than by using coercive tactics, he specified, similarly attributing increased tax collections to growth of activity at the Dar es Salaam port, largely owing to the presence of DP World port concession holder.

Tax evasion remains a challenge globally and domestically, he said, stressing TRA commitment to educating the public on voluntary compliance over tax obligtions.

 “We will engage various community groups, including influential figures, politicians, media personalities and religious leaders to promote tax education,” he specified.