Equity Bank secures major Tanzania Revenue Authority tax collection deal

Equity Bank Group Chief Executive Officer James Mwangi.

NAIROBI, KENYA: Equity Bank Group has sealed a partnership with Tanzania Revenue Authority (TRA) allowing tax payers in the country to pay all their taxes through its network.

The new tax settlement deal - clinched through the group’s Tanzania subsidiary - would be available for all TRA clients including non-Equity Bank account holders.

By fostering such a partnership, local taxpayers would now be able to conveniently pay the respective taxes including Customs and Excise taxes such as Import Duty, Excise Duty, Pay As You Earn (PAYE) and Value Added Tax (VAT) on importation.

The arrangement is meant to enhance efficiency in tax collection and shore up the Group’s  transaction-based income following years of heavy investment in technology, branch expansion and consolidation of the business processes.

Coming months

Equity Bank Tanzania Managing Director Joseph Iha said plans are also underway to extend the convenience to all Equity Bank’s 330 agents countrywide, E-Banking and Mobile platforms in the coming months.

Mr Iha said the integration of Equity Bank systems with those of TRA is part of the bank’s commitment to ensuring that it offers convenience for all types of financial transactions and enhancing national tax collection efficiencies. “As a corporate responsible local bank, committed to fostering national development in Tanzania, Equity Bank is keen to enhance tax collection efficiencies,” he said.

“Such efficient tax collection guarantees national development, as these are the monies that are used for infrastructure development, social services and related elements,” he added in a statement issued during a joint media conference, flanked by Senior Accountant, TRA Custom and Excise Paulina Ngowi yesterday.

On a mutually agreed pact TRA and Equity Bank sealed the agreement geared at sharing their respective strengths, experiences, information technologies and human resources to foster higher return on investments for both organisations.

To enjoy the new service at Equity Bank branches, TRA clients would only need to submit TRA assessment form for customs and excise payments or a control number printout to Equity confirming the amount they intend to pay.

The Equity Bank teller would receive the due amount as per the control number indication and confirm the transaction. The taxpayer would then be issued with a receipt as a confirmation of payment.

Maximum revenue

Ms Ngowi expressed delight at being able to work with Equity Bank on this process, noting that the bank’s network across Tanzania and its technological expertise would relieve the strain on TRA’s own systems and ensure that it collects maximum revenue, with less hustles and at a shorter period of time compared to the past cumbersome process.

“Our systems and Equity Bank’s are synchronised so that we can track all transactions in real time hence improving efficiency,” added Ngowi. Equity Bank Group recently unveiled an upgraded IT platform, which would enable it roll out technology driven products, enhance customer experience and become a one-stop-shop for financial services and products.

The bank also plans to enhance its payment systems significantly on all fronts including mobile-based platforms as part of its 3.0 Strategy.