Revenue collection targets missed

 

 “It’s important to target being independent in budget funding to avoid risks in implementing projects. Donor funds come with conditions and sometimes they are not reliable, a trend that disrupts our plans,” Ms Saada Mkuya Salum, Finance Minister 

By  Veneranda Sumila, The Citizen Reporter

In Summary

• Mainland’s revenue collection goal was missed by 17 per cent and that in Zanzibar by 7 per  cent in February, says BoT
• Taxes on imports on the mainland were Sh292.9 billion, 18.55 per cent below target. Isles’ tax on imports also fell short of target after only Sh6.8 billion was collected

Dar es Salaam. Mainland Tanzania missed its revenue collection target by about 17 per cent in February while Zanzibar fell short of the goal by 7 per   cent.

This indicates that Zanzibar is good at collecting revenue compared with the mainland.

In February 2015, the central government in Mainland Tanzania collected Sh718.5 billion, 83.4 per cent of the target. The Isles collected Sh31.2 billion, 7 per cent lower than the target during the same month.

Zanzibar has five regions while Mainland Tanzania has 25. While tax revenue in Mainland Tanzania amounted to Sh694.9 billion, 86.9 per cent of the target, Zanzibar’s tax revenue amounted to Sh28.3 billion, 8.2 per cent below the target. A Bank of Tanzania report indicates that the performance on the mainland is partly explained by a decline in the value of imported dutiable and taxable goods.

Taxes on imports on the mainland were Sh292.9 billion, 18.55 per cent lower than the target.  Isles’ tax on imports also fell short of target after only Sh6.8 billion of the targeted Sh9.5 billion was collected. While the mainland’s current account balance improved by 11.4 per cent to a deficit of $4.56 billion in the year ending February 2015 from the outturn of the corresponding period in 2014 the current account balance in Zanzibar improved to a deficit of $66.3 million from $90.1 million recorded in the corresponding period in 2014.

“The development in Zanzibar was mainly on account of a decrease in imports as well as a rise in receipts from tourism-related activities,” says BoT