ZANZIBAR: The Zanzibar Revenue Authority (ZRA) has reported a sharp increase in domestic revenue collection, recording more than 1.215tri/- during the 2025/26 financial year, driven by stronger economic activity, improved tax administration and growing voluntary tax compliance.
In a statement issued on Friday, the authority said it collected 1.215tri/- between July 2025 and June 2026, equivalent to 96.7 per cent of its annual target of 1.257tri/-.
The amount represents an increase of 353.84bn/-, or 41 per cent, compared to the 861.88bn/- collected during the 2024/25 financial year.
According to ZRA, the strong performance reflects continued improvements in tax administration, expanding economic activity across key sectors and increased compliance by taxpayers.
The authority also linked the revenue growth to sustained public investment in infrastructure and social services, as well as Zanzibar’s continued economic progress under the leadership of President Hussein Ali Mwinyi.
ZRA further noted that strengthened trade and economic cooperation between Zanzibar and Mainland Tanzania, supported by President Samia Suluhu Hassan’s initiatives to enhance the Union economy, has contributed to improved revenue mobilisation.
Other factors behind the increase include wider integration of taxpayers’ business systems with ZRA’s digital platforms, particularly in the tourism industry, expanded taxpayer education through online channels and the registration of new taxpayers, including foreign-owned businesses operating in Zanzibar.
The authority also cited stronger collaboration with key stakeholders and improved professionalism among its staff as important drivers of the improved revenue performance.
Looking ahead, ZRA has set an ambitious revenue target of 1.726tri/- for the 2026/27 financial year.
To achieve the target, the authority plans to further expand the integration of business systems with its tax platforms, strengthen verification of imported goods to improve the collection of Value Added Tax (VAT) and excise duty, enhance taxpayer education and intensify tax audits in collaboration with other government institutions.
It also intends to strengthen debt recovery efforts, closely monitor government-funded projects to ensure proper tax collection and continue promoting voluntary compliance while taking firm action against tax defaulters.
ZRA thanked taxpayers for their continued cooperation, saying voluntary compliance has played a vital role in enabling the government to finance essential public services and implement development programmes.
The authority reaffirmed its commitment to improving service delivery, modernising revenue collection systems and strengthening domestic resource mobilisation to support Zanzibar’s long-term economic development agenda.
