Why TRA missed target revenue by Sh2.8 trillion

 

By Alex Nelson Malanga

Business journalist

Summary

• The reasons include shortfalls in tax collection systems and inefficiency in dealing with tax-related cases.

Dodoma. The Parliamentary Public Accounts Committee (PAC) revealed yesterday the reasons why the Tanzania Revenue Authority (TRA) failed to meet the revenue collection target by Sh2.8 trillion during the 2020/21 financial year.

The reasons include shortfalls in tax collection systems and inefficiency in dealing with tax-related cases.

The PAC made the revelations in Parliament yesterday when presenting its report after working on the audit report of the Controller and Auditor General (CAG) for the period under review.

Going by the audit report, in the financial year ending June 2021, the taxman missed collection target by Sh2.8 trillion.

Under the period of reference, the taxman garnered Sh17.8 trillion against the target of Sh20.7 trillion. 

Also Read:TRA strives to achieve revenue target

Presenting the report, the committee’s vice chairperson Japhet Hasunga said the committee established that the deficit was a result of various challenges including poor handling of tax debts and presence of number of undecided tax cases in courts, Tax Revenue Appeals Tribunal (Trat) and Tax Revenue Appeals Board (Trab).

“As a matter of fact, the committee advises the TRA to improve its tax collection systems,” asserted Mr Hasunga.

Parliamentary Public Accounts Committee (PAC), vice chairperson Japhet Hasunga speaks in Parliament in Dodoma. PHOTO | FILE

TRA, he recommended, should also improve its technical unit in order to work on tax objections in time, improve its performance in tax assessment and estimations in order to get rid of shortcomings in the assessment and estimations.

Furthermore, the TRA was also asked to effectively supervise collection of levies on transit petroleum products, this should go in parallel with strong supervision of warehouses.

Meanwhile, the Local Authorities Accounts Committee also tabled its report after it had inquired a total of 40 local governments audited by the CAG. 

Presenting the report, committee’s vice chairperson Stanslaus Mabula said their committee identified 10 areas with misuse of public funds.

The areas, according to Mr Mabula, are relating to internal control systems, challenges in revenues collection and spending, poor human resources and contracts.

“The committee found out shortfalls in public investment in some council, whereby the councils invested without doing a due diligence and business proposal,” he revealed.