Tanzania: Column – Treasury Registrar’s Corner. TR Office Sees 48pc Rise in Non-Tax Revenue in 10 Months

Dodoma — IN just ten months, The Office of the Treasury Registrar (OTR) has recorded an extraordinary surge in non-tax revenue collection–a development that underscores the growing power of digital governance and data-driven public financial management.

According to the Treasury Registrar and Workers’ Council Chairperson, Mr Nehemiah Mchechu, who presented the figures during the Second Workers’ Council Meeting held in Kibaha on May 23-24, 2025, the Office collected 831bn/- between July 2024 and May 16, 2025.

This marks a 48 per cent increase compared to 562bn/- collected in the same period the previous fiscal year. “This performance demonstrates that our reforms are working,” said Mr Mchechu during his address. “The systems we have strengthened are now delivering the efficiency, transparency and results that this country needs.”

The 10-month transformation

The surge did not happen by chance. The OTR attributes the growth to enhanced oversight mechanisms, strengthened follow-ups on dividends and contributions and most significantly, the integration of advanced digital tools. Among the most impactful reforms has been the continued upgrade and deployment of the MUSE system, which tracks real-time financial data from public institutions.

Coupled with integration into national platforms such as PlanRep, ERMS and eWatumishi, the system now facilitates automated monitoring of revenue flows and spending patterns across institutions where the government holds equity.

This digital synchrony– endorsed by President Samia Suluhu Hassan as part of a national directive to ensure systems “communicate” with one another–has allowed the OTR to close loopholes, minimise leakages and bring accountability to the forefront.

Inside the ecosystem of Non-Tax Revenue

At the core of the OTR’s mandate is the management and oversight of a vast ecosystem of public entities — 308 in total. Of these, 252 are fully owned by the government, while 56 are companies in which the government holds minority shares. Each institution, whether commercially or service-oriented, is expected to contribute to the national budget — not through taxes, but through non-tax revenue streams.

This is where the OTR functions as both an investment manager and revenue collector, ensuring the government receives its fair share from its own enterprises. These contributions fall into three main categories, each governed by its own legal framework. The first is dividends — paid by profit-making institutions as required under the Companies Act and the Public Corporations Act.

These returns reflect financial performance and serve as a benchmark for institutional management. The second stream covers non-commercial or servicebased institutions that may not generate profits but are still required to support the national budget. Under Section 12(3) of the Public Finance Act, these institutions must remit 15 per cent of their gross income to the government. This ensures that every institution contributes in some measure, regardless of profitability. The third stream includes a broader mix of miscellaneous revenues.

These cover surplus income — where 70 per cent of any remaining balance after operational costs must be returned to the government — along with repayments on government loans, interest from on-lending arrangements and proceeds from the Telecommunication Traffic Monitoring System (TTMS), which monetises international phone traffic under regulations introduced in 2021.

These mechanisms are designed to ensure a more reliable and structured flow of non-tax revenue into the national treasury. However, their effectiveness ultimately depends on how consistently and responsibly public institutions fulfill their obligations.

Revenue strategy with tangible results

The Office’s success within just 10 months reveals more than improved systems–it showcases a well-executed strategy. By placing emphasis on these revenue streams, OTR has turned previously underleveraged income sources into a reliable fiscal pillar. “This revenue is crucial because it directly strengthens our national capacity to invest in services without overrelying on taxes,” Mr Mchechu stated. Again, analysts are of the view that every shilling collected through these mechanisms increases the country’s financial sovereignty.

Broader impact and budget implications

Following this performance, OTR has been assigned a significantly higher target for the next fiscal year. For 2025/26, the Office is expected to collect 1.566tri/- , up from 1.113tri/- in 2024/25–a projected growth of 41 per cent. The Office’s own operational budget has increased accordingly, from 45.08bn/- in 2024/25 to 62.26bn/- in 2025/26, to enable further system improvements, personnel capacity building and project implementation under its long-term strategic plan.