THOUGH faced with minor challenges the Tanzania Revenue Authority (TRA) in Kilimanjaro region had recorded success story in 2012/2013 financial year.
During this year TRA in Kilimanjaro recorded a tax collection of Tshs 90.6 billion when compared with the same of Tshs 77.2 billion recorded in 2011/12 with this collection covering the financial year which started on 1stJuly 2012 to 30th June 2013.
This increase in tax collection can be rated as an increase which is equivalent to 17 percent when comparing the year 2011/12 and 2012/13.
Revealing this was the TRA Regional Manager in Kilimanjaro region Mrs. Patience Minga when having an inclusive interview with The Guardian held in her office recently.
Mrs. Minga said leading in these tax collections realized in 2012/13 was the Customs Department with a tax collection of Tshs 46.8 billion while Domestic Revenue Department recorded a tax collection of Tshs 43.79 billion.
However, this TRA Regional Manager said that with such a good performance in tax collection the same did not reach the set out target in the year 2012/13.
“The target was to collect a total of Tshs 103 billion but we actually collected a total of Tshs 90.6 billion meaning we missed our target by Tshs 13.35 billion “ she said adding that this implies that the targeted tax collection was reached at 87 percent only.
Going into details she said the Domestic Revenue Department which had a target to collect Tshs 47.004 billion actually realized a collection of Tshs 43.79 billion thus realizing its set out target by 93 percent.
In the same vein she said the Customs Department which targeted to collect a total of Tshs 56.93 billion realized its target by 82 percent as its actual tax collection was Tshs 46.83 billion.
When asked to give details on Domestic Revenue Department collection from each category she said leading was Pay As You Earn (PAYE) taxes which recorded a tax collection of Tshs 13.042 billion followed by Value Added Tax (VAT) with a record of Tshs 8.578 billion.
“Other Indirect Taxes recorded a collection of Tshs 8.257 billion Corporate Taxes Tshs 6.651 billion, Individuals Tshs 3.88 billion while SDL and WHT recorded a tax collection of Tshs 1.9 billion and Tshs 1.279 billion respectively” said the TRA Boss in this region.
On how each district in the region had performed in terms of tax collections in her region she said leading was Moshi district with a revenue collection of Tshs 38.998 billion followed by Hai district with the same of Tshs 1.678 billion.
“Mwanga district managed to collect Tshs 1.185 billion, Same district Tshs 1.102 billion while least was Rombo district with a collection of Tshs 0.825 billion” she said.
When asked to give the revenue contribution of each district into her regional tax basket she said Moshi contributed a total of 89.1 percent, Hai- 3.8 percent, Same- 2.5 percent, Mwanga- 2.7 percent while Rombo district contribution was 1.9 percent.
When asked as to why Direct taxes collection had a good performance rated at 93 percent she said the same was due the collection of big tax arrears from Dorman (T) Ltd – Tshs 1.2 billion and Kibo Match Corporation –Tshs 1.0 billion.
As to the challenges which faced TRA in the region in 2012/13 she named them to be low collection from Motor Vehicle Registration (imported cars) as this recorded a collection of Tshs 0.924 billion when compared with the same of Tshs 1.124 billion recorded in the previous year 2011/12.
“Motor Vehicles Registration projections for the year 2012/13 was set at Tshs 1.405 billion, however, we managed to collect only Tshs 0.924 billion meaning we realized an unexpected deficit of Tshs 0.471 billion.
Poor compliance in usage of EFD Machines and issuance of general receipts was yet another challenge which faced us” she said adding that still education to both Tax Payers and Customers (buyers) was of paramount importance.
According to her the third main challenge which faced the performance of her institution in 2012/13 was a huge amount of tax relief which stood at Tshs 4.902 billion.
“At times we have to grant such reliefs to government institutions, religious institutions, non governmental institutions and individuals and individuals. However, at times the same is very big amount: she said.
On her side when reached to comment on how Voluntary Payment of Taxes has helped to increase taxes base in the region and how the same was conducted a Senior Tax Payers Service Officer with TRA in Kilimanjaro region Ms. Enni Mwanga had a lot to say.
To start with she said the same had helped a lot to increase the number of Tax Payers from 20,457 recorded as on 1st July 2012 to the same numbering to a total of 23,872 Tax Payers recorded on 30th June 2013 an increase rated at 12 percent.
“The year 2012/13 saw us conducting seminars in all districts across the region which numbered to 178 seminars. These seminars were g eared towards educating tax payers on the importance of Voluntary Tax Compliance's (voluntary payment of taxes).
Apart from these seminars we also educated secondary school students on this importance aspect not forgetting that we also ran some outreach programs (meetings) with tax payers in places with a huge number of people in markets or bus stations whereby we normally conducts a question and answers sessions with tax payers on tax compliance's and related matters.” she said.
Concluding both Ms. Minga and Ms Mwanga said education given to tax payers in the region by the Tax Service and Education Department in the region through Radio Stations like Moshi FM and ‘Redio Sauti ya Injili’ had also helped a lot to minimize the antagonistic relations which used to exist before between Tax Officials and Tax Payers adding that the same is now a harmonious relationship meaning a lot of tax payers in the region have grasped well the concept of tax compliance's through Voluntary payment of their taxes promptly.
Credit: Lyamuya Stanley.