Non-tax revenues reach 67pc as TR Office eyes full-year target

DAR-The government, through the Office of the Treasury Registrar (OTR), has recorded major strides in collecting non-tax revenue, having reached Sh749 billion as of May 7, 2025, representing 67 percent of the annual target of Sh1.113 trillion for the 2024/25 financial year.
The update was delivered on Wednesday by Ms Lightness Mauki, Director of Performance Management, Monitoring, and Evaluation for commercial public entities at the OTR.

She was speaking ahead of the upcoming Gawio Day ‘Dividend Day’, to be held on June 6, 2025, at the State House in Chamwino, Dodoma.

On that day, President Samia Suluhu Hassan is expected to receive dividends from public entities and companies in which the government holds minority shares.

Earlier, speaking with optimism during a special 30-minute programme aired on TBC on Tuesday night, Ms Mauki said that many institutions are still in the process of holding their Annual General Meetings (AGMs), and expressed confidence that the target will be met by the end of the financial year.

Tuesday's TBC programme focused on highlighting the contribution of public institutions to national development through non-tax revenue.

“We are confident that we will present a strong dividend to the President on June 6,” she said.

From the total collections of Sh749 billion, dividends from corporations and minority interests accounted for 63 percent.

The mandatory 15 percent contribution from gross revenues to the Consolidated Fund accounts for 29 percent, while other remittances, including on-lending (loan repayments and interest), and collections from the TTMS system, contributed 8 percent.

Collections as of May 7 this year are significantly higher than the Sh500 billion recorded by the same date last year—an increase of nearly 50 percent.

Behind the success

According to the Treasury Registrar, Mr Nehemiah Mchechu, OTR’s strong performance is the result of strategic oversight and reforms carried out in collaboration with public institutions.

He explained that the office has systematically reviewed shareholder agreements, operational contracts, and technical assistance agreements to reduce operational costs and improve returns to the government.

He further noted that the implementation of ICT systems—particularly the Government Electronic Payment Gateway (GePG)—has significantly improved transparency, accountability, and efficiency in revenue collection.

Speaking on Thursday morning during a special program of Kumepambazuka aired by Radio One, Ms Neema Musomba, the director of Management Services at OTR, said their office has strengthened quarterly, semi-annual, and annual performance reviews of public institutions, as well as budget scrutiny before approval.

"These measures have enhanced the government’s financial oversight of public entities," she underscored as she was speaking ahead of the Gawio Day.

Ms Musomba also highlighted that performance contract evaluations between OTR and the Boards of Directors of public institutions have been intensified, promoting direct accountability among institutional leaders.

Non-tax revenue: A pillar of national development

Non-tax revenues continue to be a cornerstone for funding essential public services such as education, healthcare, clean water, and infrastructure.

These revenues have helped reduce reliance on donor aid and external borrowing, contributing to greater economic sovereignty and policy independence.

Ms Musomba emphasized that beyond the financial aspect, non-tax revenues foster greater accountability among public institutions and build public trust in how national resources are managed.

“Dividends are not just about money—they reflect strong performance, accountability, and institutional participation in national development,” she insisted.

OTR has directed all institutions that have not yet submitted their dividends for the current financial year to do so by June 30, 2025, to support the implementation of government plans.

Diramakini

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