Business

Tanzania Sees 40% Surge in Non-Tax Revenue from State and Partially-Owned Firms, Aiming for TZS 1 Trillion in 2024/25

The Tanzanian government recorded a 40% increase in non-tax revenue, reaching TZS 884.7B from July 2024 to May 2025, driven mainly by dividends. It now targets TZS 1T by the financial year end, supported by stronger oversight, digital systems, and reforms across public institutions and minority-share companies.

The amount rose to TZS 884.7 billion from TZS 633.3 billion collected in the same period of the previous financial year. The announcement was made by Treasury Registrar Nehemiah Mchechu during a breakfast meeting with editors in Dar es Salaam on 2 June 2025.

He explained that the current figure represents a 15.3% increase from the total non-tax revenues collected in the full 2023/24 financial year, which stood at TZS 767 billion. He attributed the growth to improved financial discipline, strengthened monitoring mechanisms, closer oversight of dividends and contributions, and the expanded use of digital systems.

Of the total non-tax revenue collected, 63.9% came from dividends, 29.7% from contributions calculated as 15% of gross revenue, and the remaining 6.4% from other sources, including loan repayments, interest from on-lent funds, and Telecommunications Traffic Monitoring System (TTMS) fees. Mr Mchechu also revealed that the OTR is targeting a total of TZS 1 trillion in non-tax revenue collections by the end of the 2024/25 financial year. As of 2 June 2025, nearly TZS 900 billion had already been collected from approximately 200 public institutions and companies in which the government holds minority stakes.

Read more at: https://www.tanzaniainvest.com/economy/government-non-tax-revenues-dividends-2025

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