Zanzibar Tax Authority Exceeds Quarterly Goals

Zanzibar Revenue Authority Exceeds Q3 Target with Sh238.75 Billion Collection
Thursday, April 3, 2025

Unguja, Zanzibar — The Zanzibar Revenue Authority (ZRA) has recorded a significant achievement in revenue performance for the third quarter of the 2024/25 fiscal year, collecting Sh238.746 billion—surpassing its target of Sh238.611 billion by 100.06 percent.

The impressive figures, covering the period from January to March 2025, were confirmed by ZRA Commissioner-General, Said Kiondo Athumani, in a statement issued on Thursday, April 3.

This third-quarter performance represents a year-on-year increase of Sh31.090 billion, or 14.9 percent, compared to the Sh207.715 billion collected during the same period in the 2023/24 fiscal year.

Monthly Breakdown Highlights Strong Momentum

In January, ZRA had set a target of Sh80.984 billion, yet actual collections reached Sh81.512 billion—exceeding the goal by 100.65 percent. This marked a Sh11.332 billion increase over the previous year, reflecting a 16.15 percent growth rate.

February also delivered solid results, with actual collections totaling Sh83.483 billion against a target of Sh83.229 billion, achieving 100.30 percent of the objective and showing a Sh10.558 billion rise—translating to 14.48 percent growth.

Although March saw slightly lower figures, ZRA still attained 99.15 percent of its monthly goal, with Sh73.750 billion collected against a target of Sh74.397 billion.

Factors Behind the Success

Commissioner-General Kiondo credited the strong performance to the increasingly integrated and dynamic economic ties between Zanzibar and Mainland Tanzania. He cited the role of effective leadership and strategic policies that have spurred trade, investment, and economic expansion under President Hussein Mwinyi’s administration.

He further noted that investments in infrastructure and social services, coupled with robust taxpayer education campaigns and advancements in digital tax systems—such as the electronic receipt system (VFMS) and the Zanzibar Integrated Domestic Revenue Administration System (ZIDRAS)—have significantly contributed to the success.

Enhanced monitoring of business activities and improved service delivery to taxpayers were also emphasized as key drivers of improved compliance and revenue growth.

Crackdown on Tax Evasion and Continued Reforms

In efforts to strengthen compliance, the Ministry of Finance and Planning has launched a special operation targeting businesses that avoid issuing electronic receipts. During a recent inspection on March 5 in Mlandege, Unguja, Finance Minister Dr. Saada Mkuya and Commissioner-General Kiondo identified discrepancies in several receipts.

Some business operators were found manipulating prices based on whether a customer requested an official receipt—charging more when receipts were issued, a practice that constitutes tax evasion.

Dr. Mkuya assured the public that such practices would be addressed, emphasizing that all taxpayers must contribute equitably to national development.

Ongoing Initiatives and Future Outlook

Looking ahead, Kiondo reaffirmed ZRA’s commitment to intensifying taxpayer education and outreach programs to further encourage voluntary compliance. The authority also plans to scale up oversight of ongoing government projects to ensure appropriate tax collection corresponding with the size and scope of each project.