The Zanzibar Revenue Authority (ZRA) has surpassed its revenue collection target for the first quarter of the 2026/27 financial year. According to ZRA Head of Information, Public Relations and Customer Services Makame Khamis Moh'd, the authority collected Sh353.310 billion between July and September, representing 100.63 percent of the target. This is an increase of Sh79.019 billion, or 28.81 percent, compared to the Sh274.291 billion collected during the same period in the 2025/26 financial year.
The ZRA had set a target of Sh351.106 billion for the first quarter, but achieved a higher collection. The authority attributed the improved performance to increased economic activity and trade between Zanzibar and mainland Tanzania. Additionally, investments in infrastructure and expansion of social services under the Eighth-phase government have created new economic opportunities in Zanzibar.
The authority also cited strengthened taxpayer education programmes and upgrades to electronic systems as contributing factors. The electronic receipt system (VFMS) and the ZIDRAS system have improved transparency and made it easier for taxpayers to meet their obligations. These systems have enabled taxpayers to easily pay their taxes and reduced the likelihood of errors.
In September alone, the ZRA collected Sh128.098 billion, achieving 100.10 percent of the monthly target. This represents a 16.99 percent increase compared to the Sh109.498 billion collected in September 2025. The authority's performance in September contributed significantly to the overall first-quarter collection.
The ZRA plans to intensify taxpayer education and monitor the proper use of the VFMS system in the second quarter. The authority will also strengthen Tax Clubs in schools and conduct special tax camps. These initiatives aim to further improve revenue collection and taxpayer compliance.
Some taxpayers have praised the authority's approach and environment. Yesser Jabir, a trader at Mchina Mwanzo, noted that the messaging is good and the environment is friendly, making taxpayers see ZRA officers as partners. This positive perception may contribute to increased voluntary compliance and revenue growth.
The ZRA's performance in the first quarter demonstrates its ability to achieve revenue targets. The authority's strategies, including taxpayer education and electronic systems, have contributed to the improved collections. The ZRA will continue to implement its plans to sustain revenue growth and improve taxpayer compliance.
Key points
- Zanzibar Revenue Authority collected Sh353.310 billion in first quarter, exceeding target
- Increased economic activity and electronic systems contributed to improved performance
- Authority plans to intensify taxpayer education and monitor VFMS system in second quarter
