DAR ES SALAAM: The Tanzania Revenue Authority (TRA) has unveiled a fleet of mobile tax office vehicles aimed at bringing informal businesses into the formal economy, as the government intensifies efforts to strengthen domestic revenue collection and reduce reliance on foreign aid.
The 10 “offices on wheels” will travel across the country offering on-site taxpayer registration, advisory services and compliance support, particularly targeting small and medium-sized enterprises that struggle with digital platforms or access to tax offices.
Commissioner General Yusuph Mwenda said the initiative marks a shift in how the authority engages with taxpayers, moving from a largely office-based model to direct field outreach.
“These vehicles are fully equipped and connected. They allow us to reach businesses where they operate, register new taxpayers, provide education and resolve challenges on the spot,” Mwenda said during the launch ceremony on Wednesday.
The move comes as Tanzania seeks to broaden its tax base to finance ambitious infrastructure and social spending plans under its long-term Vision 2050 strategy, which aims to transform the country into a high-income economy.
KEY HIGHLIGHTS:
- The government wants more businesses to register and comply with tax rules so that revenue collection increases and reliance on foreign aid decreases.
- The mobile units are a service and outreach tool, not just an enforcement mechanism. They offer registration and advice to encourage voluntary compliance.
- The strategy aligns with long-term development plans aimed at financing infrastructure and social services through domestic resources.
- Informal economic activity remains significant, and policymakers believe simplification and direct engagement can bring more businesses into the formal system.
Officials say expanding the tax net is critical in an economy where a significant share of businesses operate informally. By simplifying access to services and providing face-to-face guidance, the TRA hopes to encourage voluntary compliance while improving transparency and trust.
“Formalisation is not about penalties; it is about inclusion,” Mwenda said. “When businesses are registered and compliant, they can grow, access credit and participate more fully in the economy.”
Finance Minister Khamis Mussa Omar said the government expects the revenue authority to improve efficiency and accountability while nurturing constructive relations with the private sector.
“The objective is to strengthen performance and increase revenue collection in a way that supports national development,” he said.
The mobile tax units form part of a broader fleet of 72 operational vehicles valued at 24.8 billion Tanzanian shillings, also launched on the same day. Authorities say the expanded operational capacity will enhance monitoring, taxpayer services and revenue mobilisation nationwide.
Analysts say that by investing in domestic revenue systems and widening the tax base, Tanzania is seeking to reinforce fiscal sovereignty and build a more resilient economy in a period of tightening global financing conditions.