Tanzania to establish Electronic revenue collection system


Tanzania government is planning to establish various techniques to raise revenue collections and speed up the process of creating a good environment for Tanzania’s industrialization mission set by the fifth phase government.

The government said so on Wednesday, March 11, 2020, by revealing that it will employ supervision of the use of Electronic Tax Stamps (ETS). The Minister of Finance and Planning, Dr Philip Mpango said the country has witnessed a considerable rise in revenue during the first seven months of the 2019/2020 financial year.

“Some of the initiatives that we shall undertake in collecting revenue include ensuring proper use of electronic fiscal devices is used properly, hastening the pace of dealing with tax assessment objectives as well as supervision of ETC on exercisable goods, ” Dr Mpango addressed the Parliament in Dodoma on Wednesday.

Various cases were run in different courts, of people accused of fabricating electronic tax documents leading to a loss to the nation. The Parliamentary Budget Committee urged the revenue body to ensure that ETC was rolled out to every factory.

“This system is good. I advise that it be rolled out to each factory irrespective of its size, ” said the committee’s chairman, Mr Mashimba Ndaki, advising the TRA management to keep a close eye on some of its workers who were colluding with factory owners to abuse the system.

The Tanzania government planned to spend a total of Sh 33.11 trillion during the 2019/20 financial year, and out of it Sh19.1 trillion was to be sourced in the form of domestic tax revenue collection.

Dr Mpango told the MPs on Wednesday that during the first seven months of the current financial year, however, TRA managed to collect Sh10.62 trillion equivalent to 96.9 per cent of a target of Sh10.96 trillion.


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