Tanzania’s government is accelerating its use of technology to modernize tax administration, aiming to boost revenue collection, reduce compliance costs, and improve taxpayer services.
Vice President Deogratius Ndejembi emphasized the role of technology in simplifying tax compliance and enhancing revenue mobilization during the 46th Commonwealth Association of Tax Administrators (CATA) conference in Arusha. He stated that digital systems could reduce administrative costs, improve taxpayer services, and detect non-compliance more accurately,
aligning with Tanzania’s Development Vision 2050.
Zanzibar Exceeds Revenue Targets Using Digital Tools
The Zanzibar Revenue Authority (ZRA) collected 100.63 percent of its first-quarter revenue target for the 2026/27 financial year, surpassing Sh351.106 billion with Sh353.310 billion in collections. This marked a 28.81 percent increase compared to the same period in 2025. ZRA Head of Information, Public Relations and Customer Services Makame Khamis Moh’d noted that taxpayer education programs and digital tools enhanced transparency and compliance. For September alone, ZRA achieved 100.10 percent of its monthly target, collecting Sh128.098 billion compared to Sh128.006 billion, a 16.99 percent year-on-year increase over Sh109.498 billion in September 2025.
Mr Makame emphasized that the authority’s investments in electronic systems, including the VFMS and ZIDRAS, improved transparency and simplified taxpayer obligations. He cited increased economic activity and trade between Zanzibar and mainland Tanzania, as well as the Eighth-phase government’s infrastructure and social service expansions, as key drivers of revenue growth. Taxpayer education programs and employee training also contributed to the results. Yesser Jabir, a trader at Mchina Mwanzo, stated that ZRA’s “friendly” environment and clear messaging encouraged voluntary compliance, with taxpayers viewing ZRA officers as partners.
TRA Expands Digital Systems for Tax Compliance
The Tanzania Revenue Authority (TRA) is rolling out the Integrated Domestic Revenue Administration System (IDRAS), which includes 17 modules. Commissioner General Yusuph Mwenda mentioned that the system features an Electronic Invoicing Module that allows taxpayers to generate digital fiscal receipts and invoices without eliminating the necessity of physical Electronic Fiscal Devices (EFDs). Mwenda noted that the authority is developing pre-filing, where taxpayers and revenue authorities could achieve a more transparent understanding of tax liabilities before a return is filed.
TRA’s seventh operating plan, which began this year, envisions a customer-centred and digitally driven revenue administration system. Mwenda stressed the need for strong coordination between the two to deliver better revenue outcomes without creating uncertainty or unnecessary costs for doing business. The TRA’s initiatives correspond to Tanzania’s projected tax revenue collection of 36.99 tri/- for the 2026/27 financial year, with domestic revenue anticipated to cover approximately 74.2 percent of the national budget.
CATA Conference Focuses on Tech-Driven Revenue Collection
The CATA conference, themed Leveraging Technology for Efficient Revenue Collection,
brought together more than 400 tax experts and senior officials from 48 Commonwealth countries. CATA President Dr Abu Tariq Jamaluddin highlighted the role of Artificial Intelligence (AI), automation, and data analytics in transforming tax administration. TRA’s Mwenda highlighted the importance of digital transformation being complemented by effective controls to ensure data security, system integrity, institutional capacity, and protection of taxpayers’ information.
The conference’s theme, Leveraging Technology for Efficient Revenue Collection,
reflected its focus on digital tax administration and revenue mobilization.
Vice President Ndejembi called on Commonwealth countries to adopt technology for equitable domestic revenue collection, stating that technology must help mobilise more domestic revenues, effectively and fairly so that our countries can increasingly finance their operations and development priorities from the domestic resources.
He reiterated Tanzania’s domestic revenue mobilisation goals through economic expansion, formalisation, a broader tax base, better compliance and improved use of data and technology. Technology should become a central tool for governments seeking to increase revenue without placing unnecessary pressure on productive economic activities,
he said.
Mr. Ndejembi delivered the comments on behalf of President Dr. Samia Suluhu Hassan during the opening of the 46th Commonwealth Association of Tax Administrators (CATA) Annual Heads Meeting and Technicians Conference in Arusha. Meanwhile, ZRA’s Yesser Jabir praised the authority’s friendly environment, stating that taxpayers see ZRA officers as partners. As Tanzania modernises tax administration, the government is using technology to collect revenue more efficiently and support productive economic activities.