PRESENTATION ON MID YEAR PERFORMANCE REVIEW MEETING HELD IN ARUSHA

PRESENTATION ON MID YEAR PERFORMANCE REVIEW MEETING HELD IN ARUSHA.

Introduction. This presentation highlights key directives issued by the Honorable Minister of Finance during the Mid-year Performance Review Meeting of the Tanzania Revenue Authority (TRA) held in Arusha. The directives aim to strengthen revenue collection, enhance tax compliance, and improve institutional efficiency..

1. Improving VAT Performance. TRA is directed to design and implement effective strategies to address VAT non-performance, strengthen compliance, and close revenue leakages..

2. Implementation of Single Instalment Tax. Implementation of Single Instalment Tax..

3. Increasing Tax Compliance Rate. Increasing Tax Compliance Rate..

4. Capacity Building for TRA Staff. Capacity Building for TRA Staff..

5. Improving Compliance among Small Miners and Jewelers.

6. Strengthening Digital Economy Taxation. Regional Managers, in collaboration with the Digital Economy Unit, are directed to design effective measures to register online traders and improve revenue collection from the digital economy..

7. Implementation of Reduced VAT Rate Measures. TRA, through the Commissioner for Domestic Revenue, should liaise with DRP and DICT to ensure smooth and effective implementation of the introduced reduced VAT rate measures..

8. Effective Utilization of Circular No. 4. TRA is directed to design and implement effective strategies to ensure full utilization of the requirements of Circular No. 4 in order to enhance revenue collection..

Strategies for Implementing Meeting Directives. 1. Capacity Building to Staff • Establish dedicated teams to assess skills gaps and coordinate targeted training. • Strengthen post-audit reviews and conduct practical awareness sessions. • Implement staff rotation and inter-departmental attachments for skills exposure. • Promote effective use of Knowledge Management Systems and Communities of Practice. • Revitalize zonal audit retreats to resolve complex and high-risk cases..

Enhancement of Trade Facilitation Unit (TFU). • Strengthen outreach and public engagement to raise awareness of TFU operations. • Segment taxpayers into economic groups for easier identification and registration. • Conduct physical visits to business premises and taxpayer locations. • Enhance collaboration with government and non-government stakeholders for data sharing..

Improving VAT Performance – Strengthen VAT Registration.

Improving VAT Performance – Enhance Compliance Enforcement.

Improving VAT Performance – Improve VAT Declaration Controls.

Improving VAT Performance – Strengthen VAT Payment and Collection.

Implementation of 2% Single Instalment Tax on Forest Produce.

Implementation Strategies of 2% SIT. • Appoint regional champions and focal persons for awareness and enforcement. • Conduct stakeholder engagement and provide simplified FAQs and guidelines. • Strengthen collaboration with other government agencies. • Enhance use of checkpoints, system integration, and WHT certification..

Improving Compliance of Small-Scale Miners. • Conduct field visits to raise awareness and registration across the mining value chain. • Introduce a small-scale mining compliance block. • Centralize TIN monitoring for mining operations. • Engage stakeholders to shorten payment cycles. • Implement joint training and capacity-building programs in mining-prone regions..

Enhancement of Digital Taxation. • Raise awareness of digital tax services both online and physically. • Collaborate with stakeholders, including LGAs. • Conduct focused physical surveys for taxpayer identification and registration. • Utilize internet platforms and social media for information dissemination. • Encourage digital payment methods through incentives..

[Audio] Slide 1: Title"Presentation on Mid Year Performance Review Meeting Held in Arusha.Directives on Revenue Performance Improvement.Tanzania Revenue Authority."Slide 2: Introduction"This presentation highlights key directives issued by the Honorable Minister of Finance during the Mid-year Performance Review Meeting of the Tanzania Revenue Authority, held in Arusha.The directives aim to strengthen revenue collection, enhance tax compliance, and improve institutional efficiency."Slide 3: Improving VAT Performance"TRA is directed to design and implement effective strategies to address VAT non-performance, strengthen compliance, and close revenue leakages."Slide 4: Implementation of Single Instalment Tax"Implementation of Single Instalment Tax."Slide 5: Increasing Tax Compliance Rate"Increasing Tax Compliance Rate."Slide 6: Capacity Building for TRA Staff"Capacity Building for TRA Staff."Slide 7: Improving Compliance among Small Miners and Jewelers"Improving Compliance among Small Miners and Jewelers."Slide 8: Strengthening Digital Economy Taxation"Regional Managers, in collaboration with the Digital Economy Unit, are directed to design effective measures to register online traders and improve revenue collection from the digital economy."Slide 9: Implementation of Reduced VAT Rate Measures"TRA, through the Commissioner for Domestic Revenue, should liaise with DRP and DICT to ensure smooth and effective implementation of the introduced reduced VAT rate measures."Slide 10: Effective Utilization of Circular Number Four"TRA is directed to design and implement effective strategies to ensure full utilization of the requirements of Circular Number Four in order to enhance revenue collection."Slide 11: Strategies for Implementing Meeting Directives – Capacity Building to Staff"Establish dedicated teams to assess skills gaps and coordinate targeted training.Strengthen post-audit reviews and conduct practical awareness sessions.Implement staff rotation and inter-departmental attachments for skills exposure.Promote effective use of Knowledge Management Systems and Communities of Practice.Revitalize zonal audit retreats to resolve complex and high-risk cases."Slide 12: Enhancement of Trade Facilitation Unit"Strengthen outreach and public engagement to raise awareness of Trade Facilitation Unit operations.Segment taxpayers into economic groups for easier identification and registration.Conduct physical visits to business premises and taxpayer locations.Enhance collaboration with government and non-government stakeholders for data sharing."Slide 13: Improving VAT Performance – Strengthen VAT Registration"Use continuous data matching in IDRAS to identify unregistered taxpayers.Automatically notify businesses approaching the VAT registration threshold, for example, Tanzania shillings two hundred million turnover.Identify and register professional service providers through their professional bodies."Slide 14: Improving VAT Performance – Enhance Compliance Enforcement"Deploy checkpoints and Electronic Fiscal Device teams to block sales without valid buyers' TINs.Enforce continuous and effective use of EFDs to improve transaction visibility.Suspend services for non-filers and issue compliance notifications.Educate government institutions on withholding tax and VAT compliance."Slide 15: Improving VAT Performance – Improve VAT Declaration Controls"Automatically restrict ineligible input tax claims, for example, Government Electronic Payment Gateway related input tax.Restrict or flag suspicious input tax claims early, especially within the first days of filing.Utilize inventory management systems within IDRAS to validate declared purchases and sales.Enforce complete invoicing and deregister unqualified traders using IDRAS alerts."Slide 16: Improving VAT Performance – Strengthen VAT Payment and Collection"Use withholding income tax systems to confirm VAT payment before clearance or further processing.Promote proactive analysis of VAT expectations and engage taxpayers before filing deadlines.Apply zero tolerance on unpaid.