The Tanzanian Budget for 2013 was presented to the National Assembly by the Minister of Finance and key changes made by the Budget proposals are summarized below:

  • Reduction of the minimum tax rate for individuals from 14% to 13%.
  • Abolition of a withholding tax exemption that currently applies with respect to aircraft lease rental payments made to a non-resident lessor by a Tanzanian air transport operator.
  • Imposition of an 18% rate of value added tax (VAT) on tourist-related services and VAT relief for inputs with respect to textile manufacturing.
  • Increased excise duty on certain beverages.

Furthermore the proposals would reduce the import duty-free treatment on deemed capital goods from 90% to 75%.  The measures also include a list of items that cannot be deemed to be capital goods for this purpose.