DAR-Tanzania’s Revenue Authority (TRA) has delivered another standout performance, exceeding its revenue collection targets in the third quarter of the 2025/26 financial year—an outcome that underscores the growing strength of the country’s tax systems and ongoing institutional reforms.
According to a statement issued by the Commissioner General, Yusuf Mwenda, the Authority collected a total of TZS 9.31 trillion between January and March 2026, surpassing its target of TZS 8.75 trillion.
“This represents a performance rate of 106.4 per cent, a clear indication of disciplined revenue mobilisation and strengthened tax administration systems,” Mr Mwenda said.
The statement further notes that in March alone, TRA collected TZS 3.58 trillion against a target of TZS 3.32 trillion, translating into an efficiency rate of 107.6 per cent.
These figures point to an exceptional pace of revenue collection, reflecting not only improved compliance among taxpayers but also intensified efforts by the Authority to seal loopholes associated with tax evasion.
Revenue growth has also remained robust. In the third quarter of the current financial year, collections rose by 23.6 per cent compared with TZS 7.53 trillion recorded during the same period in 2024/25.
This provides tangible evidence that ongoing reforms within the Authority are beginning to yield measurable results.
A breakdown of monthly performance shows that in January 2026, TRA collected TZS 3.04 trillion, achieving 106.7 per cent of its target. February followed with TZS 2.69 trillion at 104.4 per cent efficiency, while March led with TZS 3.58 trillion.
This consistent performance across all three months highlights a sustained and stable revenue trajectory.
Economic analysts attribute these gains largely to the increased use of technology in tax administration, improved collaboration between TRA and taxpayers, and stricter enforcement measures against tax evasion.
Taxpayer education initiatives have also played a critical role in enhancing voluntary compliance and fostering a broader understanding of the importance of paying taxes.
Beyond the third quarter, cumulative figures for the nine-month period from July 2025 to March 2026 show that TRA collected a total of TZS 28.005 trillion against a target of TZS 26.773 trillion, equivalent to growth of 16.5 per cent.
This places the Authority firmly on track to meet, and potentially exceed, its full-year revenue targets.
In another positive development, the efficiency of tax administration continues to improve, with the cost of collection remaining low at 2.41 per cent.
This indicates that TRA is able to generate higher revenues while utilising relatively fewer resources-an important marker of operational efficiency.
Meanwhile, the tax-to-GDP ratio has risen to 14.1 per cent, up from 13.7 per cent, signalling the increasing role of domestic revenue mobilisation as a cornerstone of Tanzania’s economic development.
Development partners have welcomed these results, noting that they strengthen investor confidence and signal the resilience of the country’s fiscal systems.
The improved performance is also expected to support the government’s ability to finance strategic development projects with reduced reliance on external borrowing.
However, experts caution that sustaining this momentum will require continued improvements in taxpayer services, reduced bureaucracy, and further investment in digital systems to expand the tax base and ensure long-term sustainability.
Overall, the third-quarter results clearly demonstrate that TRA has made significant strides in revenue collection, reinforcing its position as a central pillar in Tanzania’s economic management framework.
If this trajectory is maintained, achieving the full-year fiscal targets appears not only realistic but highly attainable.
Analysts further emphasise that this is an opportune moment for all stakeholders to deepen collaboration with TRA in building a self-reliant economy driven by domestic revenues.
Ultimately, these achievements are not solely those of the Authority, but a shared success for every Tanzanian who fulfils their tax obligations promptly and voluntarily. (Credit:Makala ya Moto Team).