Tanzania: Tax proposals in 2025/2026 budget
Includes income tax, VAT, and excise duty amendments
The 2025/2026 budget—presented on June 12, 2025—introduced several tax proposals, including regarding:
- Income tax
- Thin capitalization rules
- Increase in alternative minimum tax (AMT) for loss making corporations
- Offset of tax losses - extractive sector
- Introduction of 3.5% single instalment tax on forestry products
- Removal of exemption when export processing zones and special economic zones products are sold locally
- Value added tax (VAT)
- Exemption on cooking gas tanks and cylinders
- Exemption on natural gas
- News without tax
- Zero rating on fabric and garments
- Zero rating of fertilizers
- Reduction of VAT from 18 % to 16% on online business to customer transactions
- Tax Administration Act, CAP 438
- Integration of invoicing systems with Tanzania Revenue Authority system
- Waiver of tax deposit to validate objections
- Excise duty amendments
- New goods subject to excise duty
- Increased tariff rates
- Reduced excise duty rates
Read a June 2025 report (26 pages) prepared by the KPMG member firm in Tanzania