The Zanzibar Revenue Authority collected more than TZS 1.215 trillion in the 2025/26 financial year, a 41% increase from the previous year, as stronger economic activity and tax administration lifted public revenue.

ZRA said the collection covered July 2025 to June 2026 and represented 96.7% of its TZS 1.257 trillion target. The outturn was TZS 353.84 billion higher than the TZS 861.88 billion collected in 2024/25, giving Zanzibar a larger domestic-revenue base for public services and development spending.

The authority attributed the performance to improved tax administration, stronger economic activity and higher voluntary compliance. It also cited continued investment in infrastructure and social services, new taxpayer registration, stronger stakeholder collaboration and the integration of taxpayers' business systems with ZRA platforms, particularly in the tourism sector.

For the 2026/27 financial year, ZRA has set a higher revenue target of TZS 1.726 trillion. To reach it, the authority plans to expand integration of business systems with tax platforms, strengthen verification of imported goods for VAT and excise-duty collection, increase taxpayer education and intensify audits with other institutions.

The new target signals confidence that Zanzibar's tax base can continue expanding as tourism, trade and formal business activity grow. It also raises the execution bar for the revenue authority, since stronger collections will depend not only on economic growth but also on compliance systems that make tax reporting easier to monitor and harder to avoid.