THE Zanzibar Revenue Authority (ZRA) has exceeded its revenue collection target by 2.4bn/- for September.

Said Ali Mohammed, the ZRA acting commissioner general, said yesterday that the agency collected 76.497bn/-, well over the projected 74.049bn/-, in a briefing for journalists.

The increase represents 103.31 percent efficiency level in revenue collection, with September 2023 collections reaching 61.694bn/-, implying a 23.99 percent increase in revenue collection in the past month, he said.

During the first quarter (July-September 2024) of fiscal 2024/2025, ZRA had an estimated target of 194.031bn/- but successfully collected 200.934bn/-, achieving a 103.56 per cent efficiency level, he said.

Fiscal 2023/2024 first quarter collections stood at 161.831bn/-, thus a 24.16 per cent growth in collections for this quarter, owing to economic interaction between Zanzibar and Mainland regions.

An improved business environment explains the situation, with large investments in infrastructure and social services, along with more intense economic activities in Zanzibar, he said.

Higher voluntary compliance due to better relations with taxpayers owing to trade facilitation, reaching out and listening to taxpayers helped, he said, pointing at the ZRA taxpayer contact center, and the ZRA access app.

Greater use of electronic fiscal receipting system (VFMS) and the ZIDRAS revenue collection system contributed, along with close monitoring of taxpayers, enabled by hiring more temporary employees, he stated.

Implementation of tax law amendments for fiscal 2024/2025 improved collection from value added tax (VAT), excise duty, port fees and infrastructure tax, he further noted.

The Zanzibar Treasury, ZRA and the Tanzania Revenue Authority (TRA), the Zanzibar Tourism Commission worked more harmoniously, enhancing overall compliance levels.

These methods will be used to enhance tax revenue collection for the second quarter of the financial year, visiting to taxpayers to address business challenges and tax disputes. This will ease tax law enforcement in eliminating business challenges, he stated.

ZRA will also work with business associations to ensure taxpayers integrate their business systems with the electronic fiscal receipting system for accurate taxpayer information.

Campaigns aimed at promoting voluntary tax payment across all regions will be pursued, alongside taxpayer registration and uplifting the correct use of the VFMS, he said.

ZRA will also conduct research to find solutions for easing tax payment by addressing emerging challenges, enhance the skills of ZRA employees with appropriate training, strict management and delivering quality services to taxpayers, he added.