On 11 June 2020, the Finance Minister presents the Budget for 2020/21 to the National Assembly. The Minister indicated that the economic impact of the COVID-19 pandemic in Tanzania is not as severe as compared to other countries. This budget highlights presents a summary of the main tax and related regulatory changes contained in the Budget speech. The summary of the Budget includes:
- The Minister is proposed to increase the salary of the employee that will increase the income threshold from Sh170,000 per month to Sh270,000 per month equivalent to from Sh2,040,000 per annum.
- Proposal to exempt from VAT agricultural crop insurance with a view to reducing insurance costs for farmers and protecting them from unforeseen losses.
- Allowable deduction for contributions made by companies towards COVID 19 and HIV AIDS relief funds.
- Due to the impact of COVID- 19 which affected the production of some industrial goods, the Minister has proposed not to amend the specific duty rates upwards for all non-petroleum products.
