The Finance Act, 2026 introduces new excise duty rates, expands VAT and tax compliance rules, revises export taxes and establishes new funding mechanisms for mining, infrastructure and local government.

RF Report

The Parliament of Tanzania has enacted the Finance Act 2026, introducing a broad package of tax and revenue measures affecting excise duty, export taxes, Value Added Tax (VAT), tax administration and public finance.

The Act received presidential assent from President Samia Suluhu Hassan on 30 June 2026.

The legislation amends several laws governing the collection and management of public revenues while introducing new compliance obligations, revising tax rates and establishing new funding arrangements for infrastructure and sector-specific programmes.

Export tax Act:

  • Annual rate adjustments: Specific excise duty rates are now adjusted annually based on the year-on-year actual inflation rate for the period ending March, plus 2%.
  • Electronic services: Excise duty is levied on services provided or delivered by non-residents through the internet or other electronic forms to residents.
  • Imported vehicles: New excise rates are established for imported vehicles based on their age: 18% for vehicles eight to 10 years old, 35% for vehicles over 10 to 20 years old, and 40% for those exceeding 20 years.
  • Specific goods update: Specific excise rates were updated for a wide range of goods, including margarine, sugar confectionery, chocolate, biscuits, bottled water, beer, wine, spirits, tobacco products, and cement.
  • New export taxes: New export tax items were added to the schedule, including waste and scrap paper (30% of FOB or TZS 200/kg), various types of bran (TZS 50/kg), and quartz sands or feldspar (10% of FOB or TZS 200/kg).

Sector-Specific Revenue Management

  • Mining: The Act establishes the Mineral Survey Fund to finance geoscientific surveys, funded by 10% of revenues collected from royalties and fees. It also provides for excise duty remissions and VAT exemptions for mining projects with government ownership interest during their construction phase.
  • Gaming: Revenue distribution from land-based casinos (7%) and sports betting (13%) is split: 70% to the AIDS Trust Fund and 30% to the Universal Health Insurance Fund.
  • Forestry: Resident individuals receiving payments for the sale of forest produce (timber, logs, resin, etc.) must now pay a single instalment income tax of 2% of the gross payment.

Infrastructure and development funding

  • Railways: The railway development levy is distributed as follows: 70% to the Railway Fund, 25% to the Consolidated Fund, and 5% for supportive infrastructure for industrial parks and special economic zones.
  • Roads and fuel tolls: Fuel tolls on petrol and diesel (TZS 363 per litre) are distributed among TARURA (TZS 100), the Road Fund Board, the Consolidated Fund, and infrastructure for special economic zones. Additional fuel tolls support the National Water Fund, AIDS Trust Fund, and Universal Health Insurance Fund.
  • National planning: The Act mandates that no national development project shall be included in the government budget unless it has undergone professional technical, financial, and economic evaluations.

Local government and land administration

  • Land rent: All land rent collected is deposited into the Consolidated Fund, with 10% disbursed back to the Ministry for land surveys and 10% to the local government authority for collection and recovery efforts.
  • Rating authorities: Every Council is designated as the rating authority for its area of jurisdiction. Property rates can now be paid at the time of payment for electricity or through other prescribed means.
  • Revenue allocation: Local government authorities are required to set aside 15% of their own source revenue: 10% for funding registered groups of women, youth, and persons with disabilities, and 5% for the construction and renovation of markets and business centres.

Tax Administration and compliance

  • Electronic payments: The Minister for Finance may mandate certain payments be made through electronic means; proof of such payment is a mandatory requirement for the transfer of assets like land, buildings, and motor vehicles.
  • TIN registration: Individuals must apply for a Taxpayer Identification Number (TIN) within fifteen days of commencing business, employment, or investment activities.
  • Disclosure requirements: Entities in the construction and extractive industries must disclose details of all contracted and sub-contracted persons to the Commissioner General electronically within 30 days of executing a contract.
  • Offenses and penalties: A new offense is established for the abuse of tax exemptions or remissions granted under framework agreements, with a fine equal to 100%of the tax shortfall.

Value Added Tax (VAT) adjustments

  • Withholding VAT: For supplies with both goods and services, the taxable value subject to withholding is apportioned at a ratio of 3:2 respectively.
  • Digital intermediaries: Operators of online intermediation services or digital marketplaces are deemed the suppliers when electronic services are provided to unregistered persons in Mainland Tanzania.
  • New exemptions: VAT exemptions were added or extended for locally manufactured fishing nets, specific aircraft parts, and locally manufactured garments made from domestic cotton.

The measures took effect on 1 July 2026 unless otherwise specified in the Act.