The Zanzibar Revenue Authority (ZRA) has set a new record in revenue collection, gathering 81.512bn/- in January 2025.
This figure surpasses its target of 80.984bn/- and reflects an efficiency rate of 100.65 per cent, marking the highest revenue collection in ZRA’s history.
Speaking at a press conference in Mazizini on Monday, ZRA Acting Commissioner General, Said Ali Mohammed, lauded the achievement, noting that the revenue collected in January 2025 exceeded the previous year’s total of 70.180bn/-.
“This represents an increase of 11.332bn/-, equivalent to a 16.15 per cent growth,” Mr Mohammed stated.
Sustained Growth in Revenue Collection
Analyzing the broader financial year from July 2024 to January 2025, Mr Mohammed revealed that ZRA initially projected collections of 500.187bn/-.
However, the authority exceeded expectations, collecting 510.545bn/-, achieving 102.07 per cent of its target.
Compared to the same period in the 2023/2024 financial year, which saw collections of 421.949bn/-, this marks an increase of 88.595bn/- or a 21 per cent growth.
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ZRA Achieves Record 81bn Revenue Collection in January 2025: Factors Driving Revenue Growth
Mr Mohammed attributed the milestone to Zanzibar’s favorable investment environment, nurtured by the government’s leadership.
“Stable and predictable tax policies, alongside peace, unity, and security, have attracted significant investments, thereby increasing government revenue,” he explained.
Additional contributing factors included enhanced economic activities between Zanzibar and mainland Tanzania, increased fuel consumption for transportation, and stricter enforcement of withholding tax regulations.
Strategic Measures for Continued Revenue Growth
To sustain and further improve revenue collection, ZRA has outlined several strategic initiatives for February 2025. These include:
- Expanding tax education campaigns to enhance taxpayer awareness.
- Strengthening enforcement to ensure businesses comply with the Electronic Fiscal Management System (EFMS) for issuing receipts.
- Establishing tax service camps to improve accessibility and encourage voluntary compliance.
- Enhancing the inspection and monitoring of goods entering Zanzibar through its ports.
- Closely tracking government projects to ensure accurate tax collection from construction initiatives.
Government Support and Legislative Oversight
Mr Mohammed commended Zanzibar’s President, Dr. Hussein Mwinyi, for his continuous support in strengthening tax administration.
He also acknowledged the House of Representatives and the Parliamentary Committees on Government Accounts and Budget for their oversight and guidance in improving revenue collection and preventing financial leakages.
Crackdown on Counterfeit Receipts
Issuing a stern warning against counterfeit ZRA receipts, Mr Mohammed cautioned businesses against purchasing receipts from third parties.
He urged all transactions to be processed through official ZRA channels to maintain authenticity and transparency.
He further called on the public to report any businesses refusing to issue receipts via ZRA’s official hotline, emphasizing that such measures are crucial in supporting government efforts to enhance public services through effective tax administration.
ZRA remains committed to ensuring a robust tax system that supports Zanzibar’s development and strengthens its fiscal position within Tanzania’s broader economic framework.