The Finance and Planning Minister has presented the Budget for 2016/17 to the National Assembly on 8th June 2016. The proposed measures related to direct taxation are summarized below:

Corporate taxation

  • Withholding tax on payments made to approved retirement funds arising from investment incomes will be imposed.Example, leasing and lending;
  • The skills and development levy will be reduced to 4.5% from 5%.

Individual taxation

  • The minimum PAYE rate will be reduced to 9% from 11%;
  • Income tax exemptions in case of the final gratuity to members of parliament will be abolished;
  • The Commissioner General of the Tanzania Revenue Authority will be granted powers to regulate rental income on the basis of the minimum market value due to withholding tax on rental income.