Dar es Salaam — A presidential commission has proposed 284 sweeping reforms to overhaul the nation’s tax system, recommending a shift towards a paperless administration and the renaming of the revenue authority to foster a more business-friendly environment.
President Samia Suluhu Hassan received the comprehensive report during an official ceremony at the State House on March 18, 2026. The nine-member commission, chaired by former Chief Secretary Ambassador Ombeni Sefue, was established on July 31, 2024, following decades of complaints from citizens and investors regarding the current tax framework.
The proposed reforms mark the first major review of the tax system since the Mtei Commission operated between 1989 and 1991. The recommendations come at a critical juncture as the nation prepares to implement its Development Vision 2050, which targets a US$1 trillion economy.
President Samia endorsed the reform agenda, emphasising the need to modernise the tax system to support the nation’s ambitious development goals. She noted that the private sector is expected to contribute 70 per cent of the funding for Vision 2050, making a conducive tax environment essential.
“We must remove the layers of tax complaints and start afresh with a better system that meets current needs,” the Head of State remarked.
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The commission’s 284 recommendations are categorised into seven main areas, with the majority focusing on policy and legislation. Ambassador Sefue outlined the breakdown, which includes 146 recommendations on policy and legislation, 41 on systems and technology, and 30 on governance matters.
“We have identified various issues within the tax administration system in the country which are still a cry of taxpayers,” Ambassador Sefue said.
Systemic challenges
During his presentation, Sefue highlighted several systemic challenges that the commission identified, including high tax rates implemented without considering broader national goals. He also pointed to an ineffective dispute resolution system that has caused taxpayers to lose confidence.
“There are many regulatory authorities collecting revenue,” he said. “And when we say revenue, it is not necessarily tax [collected] alongside the Tanzania Revenue Authority and local government authorities without coordinated arrangements.”
This lack of coordination has resulted in multiple authorities collecting fees and levies from the same source, causing confusion and high compliance costs. Sefue noted that the situation has become so burdensome that some stakeholders see bribery as the only solution.
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“As a result, they all collect fees, levies, and excise duties from the same source and the same taxpayers, thus causing confusion, disturbance and high costs for stakeholders, to the point that some see it better to pay bribes to eliminate the problem,” he emphasised.
Technological solutions
To address these challenges, the commission strongly advocated for the integration of fragmented technological systems and a shift towards a more customer-centric approach. A key recommendation is the development of a user-friendly mobile application to facilitate easier tax compliance.
“We recommend that the Tanzania Revenue Authority develop a simple app that will enter any person’s phone that will be used as a gateway for taxpayers and establish a system that will largely be faceless and paperless,” Ambassador Sefue said.
The proposed app would enable taxpayers to register, file returns, view liabilities, and make payments through digital channels. The commission also recommended leveraging artificial intelligence, big data, and blockchain technology to enhance transparency and efficiency.
“We recommend removing the procedure of tax officials meeting face-to-face with taxpayers and reducing the use of cash and paper, as I said, a faceless, cashless, paperless system and as much as possible,” Sefue added. “All matters should be conducted through networks.”
A shift in culture
Beyond technological upgrades, the commission emphasised the need for a fundamental shift in the mindset and culture of tax administration officials. To reflect this change, they proposed renaming the revenue authority.
“We recommend that the Tanzania Revenue Authority and all those with tax authority change their mindset and build a new culture of service to taxpayers,” Sefue said. “And to align with that mindset, we recommend that the Tanzania Revenue Authority be renamed from Tanzania Revenue Authority to Tanzania Revenue Service.”
The commission also stressed the importance of creating a comprehensive ecosystem to support small businesses and encourage formalisation. Sefue noted that the current tax base is too small, placing a heavy burden on the few who operate within the formal system.
“There is still no complete and comprehensive 360-degree ecosystem for identifying, nurturing, and developing small entrepreneurs and those starting new businesses,” he added. “This is a very big cry of citizens everywhere we went, especially young people, for many days.”
Commitment
The commission’s report represents a watershed moment for the nation’s tax administration, reflecting extensive consultation with stakeholders and international benchmarking visits to England, India, Vietnam, and South Korea.
President Samia endorsed the reform agenda, emphasising the need to modernise the tax system to support the nation’s ambitious development goals. She made a strong personal commitment to seeing the reforms through.
“I prefer that when I leave, I leave this thing completed and I have built a strong foundation for the implementation of our vision going forward,” she said.
She acknowledged that the transition would not be easy, comparing the necessary reforms to shedding old skin or straightening a deformed limb. The President called for patience and dialogue during the implementation phase.
“Change hurts,” she said. “For a long time, 35 years back, we have been going with the tax style we had. Now, if it is a deformity, you have to go and unfold that arm, which is folded, like this [demonstrating], there must be pain. The arm wants to be straightened, the pain will be there.”
