Quake, drought lower Kagera revenue collection

From MEDDY MULISA in Bukoba

TANZANIA Revenue Authority revenue collection in Kagera Region were below the target in the first seven months of the 2017/18 financial year due to impacts of an earthquake that hit some parts of the region in 2016, drought and political tension in Kenya last year.

The Kagera Regional TRA Manager, Adam Ntog'ha told the `Daily News' that revenue collection from July last year to February this year reached 28.772bn/- which is equivalent to 84.7 per cent of the target of 33.976bn/- He said the earthquake that struck some parts of the region in 2016 which destabilized some businesses had contributed to lower revenue collection in the first eight months of the financial year.
An earthquake measuring 5.7 on the Richter scale struck on September 2016 in Kagera region killing at least 19 people and injuring over 500 people, the majority in and around the town of Bukoba or in Missenyi District to the north. Over 840 homes had been destroyed and another 2,000 damaged, leaving thousands of families homeless. The TRA Manager said lower revenue collection were also contributed by low coffee output due to drought that hit most parts of the region last year.
"Coffee production declined due to drought," he said adding the region could not collect an estimated 240m/- from coffee sales from primary societies. According to him Karagwe market fire incident of last year had also contributed to low revenue collection as businesses were affected and could not pay taxes as expected. According to him they could not collect an estimated 170.7m/- from the market. Mr Ntog'ha said the region could not collect an estimated amount of 520m/- after research activities under Economic Development Initiative (EDI) declined.
EDI is a survey research and consultancy house providing clients from the public, private and civil society sectors expert knowledge, skills and tools to improve their effectiveness to promote economic development in developing countries. The TRA Manager said revenue collection were hampered by lower imports through the Mtukula border post due to political tension in Kenya late last year. According to him, Mtukula border post accounts for 75 per cent of total customs revenue.
Elaborating, he said the Domestic Revenue department's projections were to collect 18.003bn/- while actual collection was 16.108bn/-, equivalent to 89.4 per cent performance. Customs and Excise department's projections were to collect 15.973bn/- while actual collection was 12.663bn/-, implying 79.3 per cent performance. He further revealed that during 2016/2017 (July-Feb) the Domestic Revenue department's projection was to collect 15.662bn/- while actual collection was 15.390bn/-,which is 98.3 per cent performance.
According to Mr Ntogh'a, TRA anticipated to collect about 50.8bn/- during 2017/2018 fiscal year adding that the authority also anticipated to collect 561.3m/- from property tax this year. Mr Ntog'ha said between July, last year to February, this year the projections were to collect 374.2m/- while actual collection stood at 146,379,308/- from property tax. He noted that TRA collected a total of 405.3m/- from property tax between October, 2016 to June 30, last year.
TRA also has targeted to collect 65.5m/- from Sign Board Levy this year. Between July last year to February, this year about 43.6m/- was garnered, implying 39.1 per cent performance. He urged customers to ensure they get receipts for goods they buy from traders by getting genuine Electronic Fiscal Devices.