Tanzania: PM Pushes for Broader Tax Base

Prime Minister Kassim Majaliwa has called on the Tanzania Local Government Reforms Association (TOA) to support Local Government Authorities (LGAs) in identifying and utilising new revenue sources to ensure sustainable funding for development projects.

Speaking during the opening of TOA’s 15th Annual General Meeting held yesterday in Dodoma, Mr Majaliwa challenged LGAs to become self-reliant in delivering services and implementing projects by maximising their revenue potential.

“TOA must be accountable in advocating for revenue diversification within LGAs. A broader tax base will enable them to finance their operations and development projects independently,” said the Prime Minister.

He tasked TOA to act as a catalyst for revenue collection by guiding LGAs, including district councils and regional administrations, to set realistic revenue targets that fully reflect all available sources.

“Have you ever asked yourselves why some LGAs exceed their revenue targets by collecting 134 per cent? It’s because the original estimates were too low and failed to account for all income sources,” he noted.

He cautioned against setting targets merely to impress senior officials and instead encouraged leaders to adopt realistic projections that encompass all potential revenue streams.

This year’s TOA meeting is held under the theme ‘Fiscal De- centralisation as a Catalyst for Socio-Economic Development in Local Government Authorities’.

The PM also called on LGAs to improve the rule of law to encourage active citizen participation in development activities.

Highlighting government achievements, Mr Majaliwa commended local government leaders for effectively supervising the implementation of the ruling party CCM’s Election Manifesto 2020-2025 during the sixthphase administration.

He cited key achievements, including the expansion of health facilities such as dispensaries, health centres and hospitals across the country.

In the education sector, he pointed to the construction of classrooms and laboratories in both primary and secondary schools, which has enhanced enrolment and academic performance.

“The government has also started constructing hostels in ward secondary schools, leading to better learning environments and improved academic results,” he added.

As the 2025 General Election approaches, the Prime Minister urged LGAs to communicate to citizens the accomplishments made under the current administration in line with the CCM manifesto.

Earlier, Minister of State in the President’s Office – Regional Administration and Local Government (PO-RALG), Mr Mohamed Mchengerwa, noted that the government has continued to allocate significant funding to development projects.

For the 2024/2025 financial year alone, LGAs received 2.13tri/- for key sectors such as health, education and infrastructure.

On his side, Minister of State President’s Office, Public Service Management and Good Governance, Mr George Simbachawene called all staff under the ministry to fully embrace and utilise public service digital systems in order to enhance efficiency and accountability.

He emphasised the importance of systems such as the Public Services System (ESS), e-Watumishi, HR Assessment, e-Office, Government Mailing System (GMS), e-Permits, the Ajira Portal and e-Mrejesho in managing government operations.

Mr Simbachawene particularly stressed the need to clean and update the e-Watumishi system, which stores crucial human resource data used for promotions, retirements and other administrative processes.

“Without accurate and updated information, these processes cannot be executed effectively. I urge everyone to ensure that the data is verified and cleaned,” he said.

He also reminded LGAs to allocate new job positions in accordance with staffing frameworks, budget ceilings and current needs, and to follow proper procedures when assigning individuals to acting leadership roles.