Dodoma — THE government has unveiled a new Medium-Term Revenue Strategy (MTRS)-a comprehensive, multi-year plan designed to fundamentally overhaul its tax system and increase domestic revenue to fund national development projects.
The initiative represents a significant policy shift from short-term financial fixes to a stable, predictable and sustainable tax system, providing greater certainty for both the government and taxpayers.
Speaking at the launch in Dodoma yesterday, Permanent Secretary in the Ministry of Finance, Dr Natu ElMaamry Mwamba said that the MTRS was developed to improve revenue collection, enhance policy predictability and boost public confidence.
The strategy focuses on closing loopholes and reducing fiscal deficits to achieve a more sustainable and equitable tax framework, she said.
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It is aimed at reducing the nation’s reliance on foreign aid and commercial loans, she said.
Dr Mwamba said that the approach was developed through collaboration with development partners and the private sector.
She noted that it outlines key reforms across three main areas: tax policy, revenue administration and legal frameworks.
For tax policy, the strategy recommends adopting a national tax policy to guide the formulation of new regulations and reduce unnecessary exemptions.
On the administrative front, the plan calls for strengthening electronic revenue collection systems, improving taxpayer registration and enhancing efficiency in collecting revenue from the digital economy.
It also proposes improvements to the collection of non-tax revenue from sources such as mining, land rent and tourism.
In terms of legal reforms, the strategy recommends regular updates to tax laws to curb evasion and ensure a fair system.
Dr Mwamba said the MTRS has taken into account national economic trends and risks and incorporating mitigation strategies to ensure smooth implementation.
She pointed out that similar frameworks have been successfully applied in other African countries, including Kenya, Uganda, Malawi, Sierra Leone, Ghana, Morocco and Rwanda.
According to Commissioner of the Policy Analysis Department, Mr Johnson Nyella the strategy was prepared with technical support from the International Monetary Fund (IMF) and is a foundational step towards building a strong, self-reliant economy.
“This is about ensuring our country has the capacity to generate sufficient domestic resources to finance its own budget, foster selfreliance and achieve sustainable and resilient development,” Nyella stated.
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The MTRS, which is being implemented in approximately 25 countries worldwide, signals a move away from short-term financial fixes to a stable, predictable and sustainable tax system, providing greater certainty for both the government and taxpayers.
