CAG flags Sh1.14 trillion collected by TRA but not remitted
Controller and Auditor General (CAG) Charles Kichere
What you need to know:
- Of the amount collected, the Ministry of Finance disbursed only Sh1.44 trillion to the respective institutions
Dar es Salaam. A report by the Controller and Auditor General (CAG) has revealed that Sh2.59 trillion collected by the Tanzania Revenue Authority (TRA) from various levies was not fully remitted to the intended institutions.
The audit for the 2023/24 financial year shows that TRA collected the funds on behalf of the Road Fund Board (RFB), Rural Energy Agency (REA), National Water Fund (NWF), and the Railway Fund (RF), however, the money was channelled to the Ministry of Finance instead.
Of the amount collected, the Ministry of Finance disbursed only Sh1.44 trillion to the respective institutions, leaving a shortfall of Sh1.14 trillion—equivalent to 44 percent of the total—which was not transferred to the designated funds.
“The failure to remit the full amount of fuel-related levies and charges breaches constitutional provisions and undermines the capacity of the concerned agencies to implement critical infrastructure projects in water, transport, and energy,” says CAG Charles Kichere.
“This has contributed to delays in project execution and reduced implementation efficiency,” emphasises the CAG.
He stresses that the practice contravenes Article 135(2) of the Constitution of the United Republic of Tanzania, which stipulates that funds allocated for specific uses must not be deposited into the Government’s Consolidated Fund.
In addition, Mr Kichere says it breaches several statutory provisions, including the Petroleum (Collection of Petroleum Fees) Regulations, 2015; and the National Water Fund Regulations, 2019.
Others are the Roads and Fuel Tolls Act (Cap. 220); and the Railways Act, 2017 (Cap. 170), noting that these laws require TRA to collect levies on diesel and petrol and remit them into designated accounts for REA, NWF, RFB, and RF.
“I recommend that the government ensures prompt and full remittance of fuel fees and levies to the designated special funds to facilitate financing of water, road, railway, and rural electricity projects,” the CAG advised.
