ABSTRACT The aim of this research study was to analyze the challenges facing management of Value Added Tax (VAT) Special Relief Procedures used by TRA to grant VAT special relief to tax payers. The geographical scope of the study was Mwanza region, Tanzania. The researcher endeavored to evaluate the management put in place by TRA and the application procedures as well as the competence of the officers who deal with tax relief. A descriptive research approach was adopted with the population of the study being TRA experts drawn from Mwanza region. It was found that there was a gross violation of the procedures and factors to which this phenomenon could be attributed were also found and presented as Inadequacy of members of staff, Lack of adequate equipment, Lack of adequate training opportunities , Reliance on outdated policies and guidelines, this was seen to be the case since there is no fixed interval of time after which review of the operational procedures is carried out, Irregular auditing on the activities of relieved organizations and difficulties in verification of the validity of applications for tax relief The researcher thus made the following recommendations; A more frequent review of procedures and guidelines as well as auditing of the relieved organizations. A more vigorous training program for the employees and the adoption of the appropriate and modern technology in the discharge of the services offered by TRA.