Mkuranga. The Commissioner General of the Tanzania Revenue Authority (TRA), Mr Yusuph Juma Mwenda, over the weekend conducted an impromptu inspection of several factories in Mkuranga District, Coast Region, where he uncovered what he described as widespread tax evasion.
Speaking during the visit, Mr Mwenda said TRA had launched an investigation into the suspected tax evasion involving certain factories.
He said the authority had received credible information from whistle-blowers and TRA employees, prompting the surprise inspection.
Preliminary findings, he noted, confirmed suspicions of tax underreporting.
“TRA officials will be stationed at these factories for one month to conduct a thorough assessment and follow-up to determine the actual tax liability,” said Mr Mwenda, adding that any evaded taxes will be recovered along with applicable interest and penalties.
He further warned those engaged in tax evasion to come forward, cautioning that the practice not only undermines national development but also carries serious consequences.
“Tax evasion today is simply a delay in payment—it will eventually be paid, with consequences,” he said.
Mr Mwenda, however, commended the investors for their substantial investments and for providing employment opportunities to Tanzanians.
This development comes against a backdrop of significant national revenue losses due to tax evasion and illicit financial flows.
Studies shows that Tanzania forfeits about Sh3 trillion ($1.87 billion) each year due to tax evasion in import and export transactions.
According to a report by Global Financial Integrity, Tanzania loses approximately $1.5 billion annually through trade-based money laundering and other illicit activities.
