Tanzania has experienced significant progress in tax revenue collection, with a 14.47% increase in the 2023/2024 fiscal year, reaching TZS 27.64 trillion. This growth reflects improved tax collection mechanisms and economic expansion. Key contributing sectors include services (28.2%), trade (23.6%), and manufacturing (17.7%). However, the country fell short of its target of TZS 28.3 trillion, highlighting the need for further reforms. Businesses face substantial compliance costs averaging 2% of their annual revenues, disproportionately affecting small and medium-sized enterprises (SMEs) that often lack the resources to navigate complex tax regulations.
Despite these advancements, challenges remain, such as a high corporate tax rate of 30%, which exceeds regional averages like Kenya’s 25%. This deters foreign investment, which stood at USD 1.5 billion in 2024. The informal economy, encompassing 60% of employment, further complicates tax collection and limits the government’s ability to expand the tax base. Projections for 2030 suggest that sustained reforms could nearly double tax revenues to TZS 40 trillion and increase the Ease of Doing Business score from 59 to 70. This questionnaire aims to explore taxpayers' perceptions and challenges to inform strategies for enhancing compliance, fostering investment, and driving sustainable economic growth in Tanzania.