Why Zanzibar taxman exceeded first-quarter revenue target

The Zanzibar Revenue Authority (ZRA) has exceeded its revenue collection target for the first quarter of the 2026/27 financial year, attributing the performance to improved economic activity and increased use of electronic systems. In a statement issued to the public on Friday, October 2, 2026, ZRA Head of Information, Public Relations and Customer Services Makame Khamis Moh'd said the collections included both tax and non-tax revenue generated between July and September. Mr Makame said ZRA had been expected to collect Sh351.106 billion during the three-month period but collected Sh353.310 billion by September 30, representing 100.63 percent of the target. Compared with the Sh274.291 billion collected during the corresponding period of the 2025/26 financial year, the latest figure represents an increase of Sh79.019 billion, equivalent to 28.81 percent. For September alone, ZRA had set a target of Sh128.006 billion but collected Sh128.098 billion, including tax and non-tax revenue, achieving 100.10 percent of the monthly target. Actual collections in September 2025 stood at Sh109.498 billion, meaning revenue increased by 16.99 percent year-on-year. Factors behind the performance Mr Makame attributed the performance largely to increased economic activity and trade between Zanzibar and mainland Tanzania. He also cited increased investment in infrastructure and expansion of social services under the Eighth-phase government, saying these had created new economic opportunities in Zanzibar. The authority also attributed the improved collections to strengthened taxpayer education programmes and upgrades to electronic systems, including the electronic receipt system (VFMS) and the ZIDRAS system. Mr Makame said the systems had improved transparency and made it easier for taxpayers to meet their obligations. “Discipline, professionalism and accountability among authority employees, supported by continuous training, have also been important factors,” he said. For the second quarter, covering October to December 2026, ZRA plans to intensify taxpayer education, monitor proper use of the VFMS system, strengthen Tax Clubs in schools and conduct special tax camps. Some taxpayers said the authority’s approach and the environment it had created could also have contributed to the increase in collections. “Currently, the messaging is good and the environment is friendly, so taxpayers see ZRA officers as partners,” said Yesser Jabir, a trader at Mchina Mwanzo.