Finance Act 2025

This section states the short title of the Act: the Finance Act, 2025.

This section says the Act starts operating on 1 July 2025.

This Part is to be read together with the Airport Service Charge Act, which is called the principal Act.

This provision amends section 3 of the principal Act by changing “ten” to “eleven” and “forty” to “40.4”.

This provision changes section 7 of the principal Act by replacing “last working” with “20th” in subsections (1) and (3).

This Part is to be read together with the Banking and Financial Institutions Act.

The principal Act is amended by adding a new provision after section 39 titled “Loss minimiser mandate.”

The DIB may support a bank or financial institution by lending, making deposits, issuing guarantees, or buying assets, but only within the stated cost limit and purpose. The Bank must set actions and restrictions for use of those funds, and supported institutions are placed under Bank supervision.

This Part must be read together with the Bank of Tanzania Act, which is called the principal Act.

Section 5 is amended to add “financial consumer protection” and to require certain Bank decision-makers and employees to do their duties independently, without outside influence.

The Board of the Bank is given responsibility for overall control, supervision, policy, performance oversight, budget approval, and related functions, and it may direct investigations when necessary.

This section repeals section 12 of the principal Act and replaces it with new text.

This section sets up a Monetary Policy Committee and an Audit Committee, and assigns their membership, quorum, reporting, and related appointment rules.

This provision says the principal Act is amended by adding a new item immediately after section 12, but the text is truncated before the new rule is stated.

The Board may create committees, and those committees must report back, keep their own proceedings and minutes, and follow Board directives.

This amendment adds a six-month time limit tied to when the Minister receives a recapitalisation request from the Bank.

This provision amends section 20 of the principal Act, including changing a years-based limit to not exceeding five years and adding internal audit-related requirements.

The Bank may open accounts, accept deposits, and collect money and other monetary claims to facilitate payment transactions.

The Bank may grant loans and advances to banks and financial institutions, on prescribed terms, for up to three months and against specified collateral, when needed to address a liquidity crisis and protect financial system stability.

The Government and the Bank must consult each other on matters affecting the Bank’s functions, powers, and duties.

This section says the Part must be read together with the Budget Act, which is called the principal Act.

This section adds a new provision after section 60 about approval before establishment, review, and fees.

Certain government institutions must get the Minister’s prior approval before they establish, review, or impose fees, levies, or charges. Local government authorities are excluded.

This Part must be read together with the Business Licensing Act, which is called the principal Act here.

This amendment adds a definition of “non-citizen” by linking it to the meaning in the Tanzania Citizenship Act.

This provision amends section 4 of the principal Act by deleting subsection (4).

This section amends the principal Act by inserting a new provision about a business restriction on non-citizens.

A licensing authority must not issue a business licence to a non-citizen unless the business is allowed for non-citizens. The Minister may order and publish in the Gazette business activities that non-citizens must not carry out.

This Part must be read together with the Cashewnut Industry Act, which is called the principal Act.

From 1 July 2025, the Tanzania Revenue Authority must deposit all export levy collected under subsection (1) into the Cashewnut Board’s bank account at the Bank of Tanzania for four years.

This Part is to be read together with the Excise (Management and Tariff) Act, which is called the principal Act.

This section defines “financial institution” for the Act.

This provision changes section 10 of the principal Act by replacing a year-end timing phrase with “twelve months from the date of issuance.”

Section 126 is amended to change a rate from five percentum to seven percentum and to add a 20% duty on imported used tableware and related products.

This text lists HS codes and indicates an amendment to section 128.

This amendment adds a filing deadline: the return must be given no later than the 25th day of the month after the relevant month.

This provision amends section 129(b) by replacing “last day” with “25th day”.

This provision amends section 132 by inserting figure “22.05” after “22.04” wherever it appears in the proviso.

This section amends section 146A to add a paragraph covering production of any other product that is not excisable under Heading 22.04.

This provision amends Schedule items 22.05 and 22.08.

This section amends the principal Act’s Fourth Schedule by adding new material immediately after Heading 05.01.

Imported margarine under heading 15.17 is described, and a rate of Tshs. 500 per kg appears in the text.

This provision sets new excise rates for certain sausage-like food products and for goods under H.S. Code 1905.90.90, with different rates for locally produced and imported items.

The provision sets excise rates for potatoes, with different amounts for locally produced and imported goods.

This text lists excise rates for a tariff item: 50 Tshs. per kg for locally produced goods and 100 Tshs. per kg for imported goods.

The provision shows excise rates for ice cream and other edible ice: 5% for locally produced goods and 10% for imported goods.

This provision amends tariff text by deleting Heading 22.03 and replacing it with new heading text; it also mentions a rate of 600.00 per litre.

This table shows excise rates for beer made from malt, including stout and porter.

This fragment lists amounts in Tanzanian shillings, including a per-litre figure and another amount.

This provision states a rate of 973.90 per litre and replaces Heading 22.04 with a new version.

This line classifies sparkling wine under the listed product heading and shows a Tshs. amount label.

The text lists two amounts in Tshs. per litre: 200.00 and 5,600.

The text lists two amounts: 215.00 per litre and Tshs. 5,615 per litre.

The text states two amounts, both expressed per litre: 200.00 and Tshs. 5,600.

The text shows a monetary amount of 215.00 per litre in Tshs., though the exact meaning is unclear.

This text lists tariff amounts for certain grape wine and grape must products, including an amount of Tshs. 215.00 per litre and a condition tied to domestic grapes content exceeding 75%.

This text shows excise rates per litre and a substitution for Heading 22.05.

This text lists tariff items for vermouth and similar grape wines, including conditions for container size and grape content.

This text lists excise rates per litre and shows a substitution for Heading 22.06.

This provision sets tariff amounts per litre for certain fermented and other alcoholic beverages, including cider, opaque beer, and some locally produced beverages.

This provision amends excise rates for certain products, including locally produced and imported goods under HS Code 2207.10.00, and replaces Heading 22.08.

This provision lists tariff items for undenatured ethyl alcohol and spirits, including locally produced and imported products under heading 22.08.

This provision amends excise rates for certain tariff items, replacing “Tshs. 0.45 per cubic feet” with “Tshs. 0.55 per cubic feet” for the listed HS codes.

This item shows a new 30% excise rate for goods described as other containing nicotine.

This provision lists imported soap and related surface-active products and shows a 10% excise rate for the listed items.

This entry describes a product category covering organic surface-active agents, washing preparations, and cleaning preparations, with stated exclusions.

This text lists imported goods entries with a 10% rate, including preparations put up for retail sale and other imported goods.

Sets a 25% excise rate for fireworks and related pyrotechnic articles, including locally manufactured and imported goods.

Imported matches and other pyrotechnic articles under heading 36.04 are charged excise duty at Tshs. 400 per kg.

This section lists excise rates for imitation jewellery and certain related goods.

Lists tariff lines for imported seats.

This text lists HS codes for certain seats and parts, together with old and new excise rates.

This provision lists tariff codes for different kinds of furniture and parts, with rates shown as 20% or 25%.

This Part is to be read together with the Export Tax Act, which is called the principal Act.

This section changes the definition of “Commissioner” in section 2 of the principal Act.

The principal Act is amended by inserting new Schedule material immediately after item 5, but the added text is not shown here.

The rate is 30% of the commodity’s FOB value or TZS 150 per kilogram, whichever is greater.

This Part must be read together with the Fair Competition Act.

Certain fee and revenue amounts must be remitted monthly to the Commission’s account at the Bank of Tanzania.

This section says this Part must be read together with the Gaming Act, which is called the principal Act.

Land-based casino winnings are taxed at 13% and sports betting winnings at 12%; part of the collected amount is then split between the AIDS Trust Fund and the Universal Health Insurance Fund, and withheld gaming tax returns must be filed and remitted electronically by the seventh day of the following month.

This section says this Part must be read together with the Imports Control Act, which it calls the principal Act.

This provision adds a definition of “Commissioner General” to section 2 of the principal Act.

Section 18A is amended to let the Commissioner General exempt any person from the section’s requirements, if public interest exists and a certificate is issued.

This section replaces the existing Schedule in the principal Act with a new Schedule.

This section lists a set of tariff codes.

This provision lists tariff lines and their Industrial Development Levy rates for the goods shown.

This line lists exclusions and rates for goods, including ceramic tiles and bars and rods, and excludes 9401.10.00 and 9401.20.00.

This provision lists tariff classification codes under item 72.09.

This provision lists heading 70.06 goods and shows percentage rates for several product categories.

Section 25 lists the codes 7007.11.00, 7007.19.00, 7007.21.00, and 7007.29.00.

A levy applies to the listed goods, and the levy for goods under items 1, 3, and 28 starts on 1 January 2026.

This Part is to be read together with the Income Tax Act, which is called the principal Act.

The provision changes the wording of the definition of “permanent establishment” in section 3.

The definition of “equity” is amended to include “positive retained earnings” after “capital” in section 12(5).

This section amends the principal Act by adding a new provision titled “Avoidance of tax liability by non distribution of dividends.”

If an entity does not distribute profits for 12 months after the end of the income year, the Commissioner may treat 30% of the entity’s profit as distributed, unless the entity is a resident entity covered by section 96(6).

If a person later realises or transfers an asset, the asset cost for calculating gains or losses under section 36 is the net cost at acquisition by the other person, plus later costs after acquisition, treated as if the two people were the same.

This section amends section 71(1)(c) of the principal Act by replacing the word “thirty” with “forty”.

Section 75(4) is amended by replacing the word “thirty” with “forty”.

This section changes section 80(1)(c) by replacing the word “thirty” with “forty”.

This section changes section 84(4) by replacing “thirty” with “forty”.

This provision amends section 105(2) of the principal Act by inserting “hired motor vehicle” after “aircraft” in paragraph (d).

This section amends section 106(1) by adding a gaming advertisement or promotion item and removing the words “other than salt” from paragraph (f)(i).

This provision changes section 115(1) so that the word “twenty” in subparagraph (d) is replaced with “thirty”.

This section amends the principal Act by adding a new provision after section 116 relating to “Single instalment tax on sale of forest produce payer”.

A resident person or instalment payer selling forest produce must pay income tax as a single instalment at 2% of gross payment, before the produce is transported.

This section amends section 117(3) of the principal Act and replaces paragraph (b) with a new turnover and income threshold rule.

This section amends the First Schedule of the principal Act.

This amendment replaces a proviso so that the paragraph does not apply to certain investors in Export Processing Zones and Special Economic Zones.

This section changes the First Schedule by replacing paragraph 3(b) with new registration tax amounts for four classes of electric motor vehicles.

This section adds a Third Schedule to the principal Act for an HIV response levy on the first registration of motor vehicles.

The provision lists levy amounts for different vehicle engine-capacity bands and for certain machinery.

This section amends the Second Schedule of the principal Act by replacing figure 513 with 523 and adding new material after item 2.

This provision amends a tax schedule by changing tax payable amounts linked to passenger-number bands and by renumbering items.

This section lists vehicle weight bands and corresponding monetary amounts, and mentions deleting the particulars of Class D and replacing them with new particulars.

This provision amends the Second Schedule by changing certain tax percentages and payable amounts for listed categories.

This Part must be read together with the Insurance Act, which is called the principal Act.

This section amends the principal Act by adding a new provision after section 134 about mandatory inbound travel insurance.

Foreigners entering Mainland Tanzania by land, sea, or air must buy inbound travel insurance on arrival.

This Part must be read together with the Investment and Special Economic Zones Act.

This amendment limits certain investment tax incentives and sets a 75% customs duty exemption for non-origin capital goods, with the investor paying 25%.

This provision amends section 65 of the principal Act by deleting the proviso to proposed subsection (1A).

Section 67 is amended by deleting the proviso to the proposed subsection (2B).

This Part must be read together with the Local Government Finance Act, called the principal Act.

This provision amends section 6(1) of the principal Act by changing two percentage figures.

This section amends section 7(1) of the principal Act by changing two percentage figures.

Section 8(1)(l) is amended to replace “ten per centum” with “two per centum.”

This section amends the Schedule to the principal Act by adding “Loading and offloading” entries and changing a cap from 0.3% to 0.25% in paragraph 4.

This Part must be read together with the Merchandise Marks Act, which is called the principal Act here.

Section 74 says the principal Act is amended to add a new provision after section 11 titled “Recordation of trademarks.”

Trademarks for goods to be imported in Mainland Tanzania must be recorded with the Chief Inspector in the prescribed manner.

This provision amends section 25(2) of the principal Act to add a new paragraph about prescribing how trademarks of imported goods are recorded, and it renumbers later paragraphs.

This section says this Part must be read together with the Mining Act, which it calls the “principal Act”.

This section amends section 69 of the principal Act by deleting one phrase and adds section 113A.

This section amends the principal Act by inserting a new provision titled “HIV Response Levy on minerals.”

A 0.1% HIV Response Levy is charged on minerals and is collected by the Mining Commission.

This Part must be read together with the Motor Vehicle (Tax on Registration and Transfer) Act, which is called the principal Act.

This section amends the principal Act by inserting a new item after section 5 called “HIV Response Levy on motor vehicle.”

A levy called the HIV Response Levy is charged on the first registration of motor vehicles, at a rate set in the Third Schedule.

This section says this Part must be read together with the National Parks Act, which is called the principal Act.

Section 9 is amended to split certain revenue deposits and require approval by the Paymaster General before disbursement of those funds.

This section says this Part must be read together with the National Planning Commission Act.

Section 22(2) is amended to add criteria for assessing public investment projects and to renumber the existing paragraph (d) as paragraph (e).

This Part must be read together with the Ngorongoro Conservation Area Act, which is called the principal Act.

The Tanzania Revenue Authority must collect sums, fees, monies, and charges payable to the Authority and distribute them in the stated percentages; spending of certain funds needs Paymaster General approval.

This Part is to be read together with the Port Service Charge Act, which is called the principal Act.

This provision changes section 7 of the principal Act by replacing “last working” with “20th” in subsections (2) and (3).

This section says this Part must be read together with the Public Finance Act, which is called the principal Act.

Certain government institutions must get the Minister’s prior approval before setting or changing fees, levies, or charges.

Certain executive agencies, public corporations, and public institutions that charge fees must remit a monthly contribution to the Consolidated Fund, capped at 40% of gross revenue, once the stated conditions are met.

This section amends the principal Act by replacing the Part IV heading with “PREPARATION OF FINANCIAL REPORTS”.

This section amends the principal Act by repealing section 31 and replacing it with new text starting with “Financial reports”.

The Accountant-General and each accounting officer must prepare and send annual financial reporting documents to the specified authorities, with a two-month deadline for accounting officers and a possible longer period for the Accountant-General if the National Assembly resolves it.

This Part must be read together with the Public Service Social Security Fund Act, which is called the principal Act here.

A qualifying pensioner or beneficiary under the former scheme continues to receive retirement pension or benefits from the Consolidated Fund. The Minister responsible for finance may, with Presidential approval and a Gazette order, change the minimum retirement benefit or pension payable to those recipients.

This section says this Part must be read together with the Tanzania Commission for AIDS Act, which is called the principal Act.

This provision amends section 18(1) of the principal Act to allocate certain tax and levy revenues, including 70% of HIV Response Levy collections on minerals and first vehicle registrations, and a stated excise duty amount for beer.

The Tanzania Revenue Authority must remit to the AIDS Trust Fund all monies it collects or receives that are designated for that fund.

This section says this Part must be read together with the Tanzania Revenue Authority Act, called the principal Act.

This section amends section 5(3) to add requirements to establish a training institution and supporting facilities for tax administration capacity building and training.

This section amends the principal Act by repealing a section.

This Part must be read together with the Universal Health Insurance Act, which is called the principal Act.

This amendment adds rates of shilingi 3 per litre for beer under heading 22.03 and shilingi 4.5 per litre for wine under heading 22.04.

The Tanzania Revenue Authority must place amounts it collects or receives from specified sources into the Health Insurance Fund for All under subsection (3).

This Part is to be read together with the Tax Administration Act, which is called the principal Act here.

The law is amended so that a private ruling on tax residence status must be accompanied by a tax residency certificate.

This section amends the principal Act by repealing section 23 and replacing it with new text titled “Recognition of small scale traders.”

The Commissioner General must recognise duly registered small-scale traders in the informal sector, the registration authority must register traders meeting the turnover and TIN conditions, and the Commissioner may assess tax if a registered trader is believed to exceed the turnover threshold.

This section amends the principal Act by repealing section 42 and replacing it with new text.

The Commissioner General must run a computerized electronic system for tax documents, and people may use it only if registered.

This amendment requires the subsection(1) entity to disclose subcontracting details to the Commissioner General within the date the subcontracted works start, using the prescribed manner.

Section 62(8) is replaced so that an objection is treated as admitted on specified dates.

If an objector misses the time limit for submitting under subsection (4), or if the Commissioner General issued the notice under subsection (3), the notice is treated as an objection decision and the objector may appeal to the Board under the Tax Revenue Appeals Act.

This provision amends section 75(6) by replacing “period sufficient to” with “period not exceeding three months within which he may”.

This section changes section 90(2) of the principal Act by adding the words “or thirty percent of the adjusted loss” after “shortfall” in paragraph (c).

This provision says the Part is to be read together with the Treasury Registrar (Powers and Functions) Act, which is called the principal Act.

Each executive agency, public corporation, or public institution must remit a monthly contribution to the Consolidated Fund, capped at 40% of annual gross revenue, once the required analysis and ministerial order are made.

This section says this Part must be read together with the Railways Act, which is called the principal Act.

This section amends the principal Act by inserting a new provision titled “HIV Response Levy on train tickets.”

A levy called the HIV Response Levy is charged on train tickets at 500 shillings per ticket.

This section says this Part must be read together with the Road and Fuel Tolls Act, which it calls the principal Act.

This provision amends section 4(1) by inserting “kerosene” after “diesel”.

This amendment adds two fuel-related per-litre amounts and directs them to be deposited into specified funds.

The text fragment mentions kerosene at Shillings 10 per litre and refers to amendments of the Value Added Tax Act.

This section says this Part must be read together with the Value Added Tax Act, which is called the principal Act.

This section amends the principal Act’s section 2 by expanding the definition of “resident” and adding new definitions for “assisted Government entity” and “withholding agent”.

This provision sets VAT-related rates for certain supplies in Mainland Tanzania and gives the Commissioner General power to identify eligible persons and implementation details by public notice.

This section says the principal Act is amended by adding new text immediately after section 27.

If an assisted Government entity makes a supply and the consideration must be collected by the Commissioner General, the VAT in that consideration is treated as advance VAT paid by the entity.

The Commissioner General must serve the person with a decision explaining any grant or refusal of an extension of time.

Section 46(2)(a) is amended by deleting the word “not” before “situated”.

Section 51(2) is amended by deleting wording in paragraph (f) and replacing paragraph (h) with a new description of online intermediation services.

This provision changes the dates in section 56 from 1 July 2024–30 June 2025 to 1 July 2025–30 June 2028.

This section amends section 57 by changing the date range from 1 July 2024–30 June 2025 to 1 July 2025–30 June 2026.

The section adds VAT filing rules: some taxable persons must provide payment proof or hold a withholding certificate, and assisted Government entities must attach an advance VAT certificate when filing.

This section amends section 71 of the principal Act, including VAT withholding and remittance timing rules.

This section amends section 72(1) of the principal Act by deleting the words “or is liable to pay,” from paragraph (c).

This section amends the principal Act by adding a new provision after section 90 titled “Certificate of Advance Output Tax.”

The Commissioner General must issue a certificate of advance value added tax paid to an assisted Government entity one day after the end of the assisted tax period.

A liable withholding agent must issue a VAT withholding certificate to the supplier by the time VAT becomes payable and include the required details.

The Schedule is amended to replace item 1 in Part I with a new entry for agricultural implements, including tractors for agricultural use.

This provision lists machinery covered by the section, including soil preparation or cultivation machinery, harvesting or threshing machinery, and agricultural liquid sprayers, with stated exceptions.

This provision lists types of irrigation parts covered, including sprinkler systems, chemical injection systems, water disinfection systems, rain guns, high-pressure fogging equipment, irrigation computers, and filters for irrigation systems.

This section lists beam machine items with associated HSC codes.

This provision lists tariff classification codes.

This provision amends item lists by adding and changing tariff or product codes and by replacing one item description with a more specific locally printed newspapers description.

This section amends item 15 by deleting some sub-items and replacing certain wording and one sub-item.

This provision amends a tax schedule, updating and adding items for certain supplies and imports such as LPG, CNG, aircraft-related goods, solar batteries, and briquette-manufacturing equipment.

This provision refers to imports of specified goods: new pneumatic tyres for agricultural and forest vehicles, dam liners, forks, rakes, and axes, when certified by the Ministry responsible for agriculture.

This section says this Part must be read together with the Wildlife Conservation Act, which it calls the principal Act.

The amendment changes how certain game fees from tourism hunting activities are distributed, including deposits to the Consolidated Fund and a 6.25% deposit to the Tanzania Wildlife Management Authority account for the relevant district councils.

Certain tourism-related fees and designated monies must be split between the Consolidated Fund, the Tanzania Wildlife Management Authority, and local councils in specified percentages.