Sales tax was introduced in Tanzania in 1969 with the main object of increasing revenue and reduce reliance on income taxation which was then the major source of tax revenue. Being a single stage sales tax it has a narrow tax base which forced the system to have a unique and complex rate structure until 1989 when it was changed. The notable effect of such rate structure is rampant tax evasion. 111e revenue performance of sales tax, however, has proved to be satisfactory compared to other taxes. Preparations for the introduction of value added tax (VAT) are continuing with the aim of broadening the tax base and collect more revenue. We suggest that in order to have a successful and efficient VAT system publicity is essential.