Tanzania's Vice President, Deogratius Ndejembi, emphasized the importance of technology in domestic revenue mobilization during the Commonwealth Association of Tax Administrators (CATA) conference in Arusha. He stated that technology should simplify tax compliance, reduce administrative costs, and improve taxpayer services. The government's goal is to broaden the tax base without placing unnecessary burdens on businesses and taxpayers. Ndejembi highlighted that taxation should support, rather than constrain, productive economic activity.
The 2026/27 budget projects tax revenue of Sh36.99 trillion, with domestic revenue expected to finance about 74.2 percent of the national budget. However, Tanzania's tax-to-GDP ratio remains below the desired level, with a long-term ambition of raising it above 20 percent. The government aims to achieve sustainable revenue growth through economic expansion, formalization, a broader tax base, better compliance, and improved use of data and technology. Ndejembi stressed that tax policy and administration must protect the revenue base while preserving the competitive environment for businesses.
Tanzania has continued to modernize tax administration by integrating tax and customs systems with other government systems and adapting laws to digital business models. The government has introduced several digital systems, including the Tanzania Customs Integrated System and the Integrated Domestic Revenue Administration System (IDRAS). These modern systems aim to reduce unnecessary interactions between taxpayers and officials, improve transparency, and support risk-based enforcement.
Tanzania Revenue Authority (TRA) Commissioner General, Yusuph Mwenda, stated that the authority's seventh operating plan envisages a customer-centered and digitally driven revenue administration system. TRA has introduced several digital systems, including electronic invoicing, which allows taxpayers to issue electronic fiscal device receipts without necessarily having a physical device. This has helped reduce compliance costs for taxpayers.
Mwenda emphasized that technology is changing how tax authorities register taxpayers, receive information, process transactions, manage compliance, and deliver services. However, he cautioned that digital transformation must be accompanied by controls on data security, system integrity, institutional capacity, and protection of taxpayer information. TRA plans to expand the use of mobile phones and artificial intelligence while strengthening digital governance.
The private sector has expressed support for the modernization of tax administration, with the Tanzania National Chamber of Commerce representative, Vincent Minja, calling for a system that is simple, predictable, transparent, and fair. Businesses also have a responsibility to keep proper records, declare income honestly, pay taxes due, and comply with the law. A growing economy creates more businesses, jobs, investment, and ultimately a broad and more sustainable tax base.
Various stakeholders, including the Tanzania Association of Tour Operators chairman, Wilbert George Chambulo, proposed greater use of mobile phones to remind taxpayers about their obligations and encourage consumers to demand fiscal receipts. A pilot project involving TRA, mobile operators, and business representatives could encourage consumers to demand receipts, including possible incentives such as additional airtime. This would make it easy for businesses to issue receipts and worthwhile for citizens to demand them.
Key points
- The Tanzanian government aims to raise the tax-to-GDP ratio above 20 percent in the long term.
- The government has introduced digital systems, including the Tanzania Customs Integrated System and the Integrated Domestic Revenue Administration System (IDRAS).
- Technology is expected to play a major role in achieving efficient revenue collection and reducing compliance costs for taxpayers.
