TRA reaffirms professionalism, standards in revenue collection

By Henry Mwangonde , The Guardian
Published at 06:00 AM Aug 23 2024
Yusuph Mwenda, Tanzania Revenue Authority commissioner general
Photo: Guardian Correspondent
Yusuph Mwenda, Tanzania Revenue Authority commissioner general

THE Tanzania Revenue Authority (TRA) has assured taxpayers of its commitment to upholding high standards of professionalism in tax law enforcement and addressing grievances, including concerns related to the issuance of agency notices.

Yusuph Mwenda, the commissioner general, outlined procedural priorities at a large taxpayer’s relationship meeting in Dar es Salaam yesterday, seeking to find ways to balance maintaining revenue collection levels with addressing taxpayer complaints.

He assured participants that they could expect professionalism and fairness from TRA officers, emphasizing that efforts would be made to curb victimization in tax collection.

The commissioner general, who was shifted from heading ZRA, the Zanzibar equivalent took office last month, succeeding Alphayo Kidata. He assumed the role amid a chaotic dialogue between Treasury and the business community, backed by a range of foreign envoys.

"We promise to provide the best services, he said, asserting that the complaints are temporary. “We will maintain professionalism to ensure fair tax collection and encourage voluntary tax payment," he reiterated.

He pointed out that in the 2023/24 financial year, TRA collected 27.64trn/- out of its 28.3trn/- target, obtaining over 11trn/- from large taxpayers. The latter account for 41 percent of domestic taxes and 39 -percent of customs duties, implying 80 percent of taxes collected, he elaborated.

Due process will be observed before making any tax decisions, with agency notices issued only when absolutely necessary, he said, voicing the will to conduct dialogue with taxpayers.

Following a trader’s strike from June 24 to June 27 across nine regions—primarily due to issues with tax systems—several foreign envoys penned and signed a letter to the government on the issue.

They sought dialogue with the Ministry of Foreign Affairs, the Minister of Finance, the Planning and Investment division in the President’s Office, the Industry and Trade ministry and the revenue authorities to address challenges faced by foreign investors.

They pointed at TRA failure to acknowledged tax concession accords with investors extended by the Tanzania Investment Centre (TIC) and other ministries. The argument was that these agreements are not gazetted, the letter noted.

In the 2024/25 budget, the government stressed intent to maintain a favourable environment for investors and the wider business community.

Michael Mhoja, the commissioner for large taxpayers, had earlier explained that the gathering was intended to address taxpayer grievances and foster open communication.