BUDGET NEWSLETTER

2024-2025

Key Highlights ................................................ 2

Economic Review ........................................... 3
Theme of the Budget ......................................... 3
Key Macro-economic Policy Targets ................... 3
Key Priority areas for the year 2024/25 ............. 3
Some of notable achievements ........................... 3
Certain Key directives ........................................ 4
Review of 2023/24 Budget Implementation for
10 months up to April 2024............................... 4
Tax Reforms .................................................. 5
Budget Structure 2024/2025 ....................... 15
Annexure A ................................................... 17

Page 1 of 23
Key Highlights
GDP growth rate to be 5.4%.
Strict direction to stop quoting/ paying price of goods and services
in foreign currency, especially school/collage fee, house rent, land
and various products or services.
Double refined edible oil from locally grown seeds manufactured by
a local manufacture to remain VAT exempt for one more year.
Supply of Gold to BOT and domestic refineries to be zero rated.
Supply of textile products made using locally grown cotton continue
to be zero rated.
VAT refund to be paid within 30 days from the application.
Withholding tax of 2% introduced on industrial minerals.
Withholding tax of 3% introduced on transfer of digital assets.
Withholding tax of 5% introduced on business of digital content
creation by resident business entity.
Section 56(5)(a) of the Income Tax Act, clarified that allotment of
shares in a resident entity shall not invoke Section 56.
Final withholding tax of 2% introduced on payment by resident
entity for purchase of agriculture produce, fishing, animal and
poultry keeping.
Brough forward loss can be set off up to 60% instead of 70% for
companies which are in loss for more than four years and have profit
in current year.
Regulation for writing off bad debts to be introduced.
Value of currency point increased from TZS 15,000 to TZS 20,000.
Maximum fine for offence of failure to issue EFD is 1,000 currency
point.
10% excise duty introduced on value of stake on betting, gaming and
national lottery.
Electrical motor vehicle shall also be required to pay
vehicle registration fee.
Railway Development Levy increased from 1.5% to 2%

Page 2 of 23
 Economic Review

Theme of the Budget

Theme of the budget is set as “Sustainable Economic Transformation

through Fiscal Consolidation and Investment in Climate Change
Mitigation and Adaptation for Improved Livelihoods”.

Key Macro-economic Policy Targets

Achieving GDP growth rate of 5.4 percent from 5.1percent in 2023.

To keep inflation rate between 3.0-5.0 percent in the medium term.

To increase tax revenue to 12.9 % of GDP from target of 12.6 % in

2023/24.

To maintain budget deficit (including grants) not exceeding 3 % of

GDP.

Key Priority areas for the year 2024/25

Completion of flagship and strategic projects; strengthening

production sectors; enhance human capital development
particularly in social services and increase the use of ICT.

Some of notable achievements

Lot 1 and Lot 2 of Standard Gauge Railway (SGR) is completed and

Lot 3 to Lot 7 is in progress.

Significant construction and rehabilitation of road infrastructure

was made through TANROADS and TARURA.

Julius Nyerere Hydropower Project is significantly completed and

power generation through Plant No. 9 started contributing 235MW
to National Grid

Rehabilitation of existing healthcare infrastructure and construction

of more than 1,324 new healthcare centers.

76 percent of country’s population use formal financial services as

compared to 65 percent in 2017.

Page 3 of 23
 Government through Bank of Tanzania has built and launched the
Tanzania Instant Payments System (TIPS) to facilitate
interoperability of transactions from banks and mobile networks.

Certain Key directives

From 1st July 2024, all stakeholders and all citizens are directed to
stop quoting prices of goods and services (especially
school/tertiary/college fees, house rent, land, and various products
or services) in foreign currencies and prices must be quoted and paid
in Tanzanian shillings.

There have been various challenges in the financial sector including

issuance of loans to citizens with high interest. Therefore, Bank of
Tanzania and all institutions involved in management of the
financial services has been directed to take strict action against
those who provide financial services illegally; and revoke the licenses
of all those who contravene the law.

Review of 2023/24 Budget Implementation for 10 months

up to April 2024

As of April 2024, a total of 35.25 trillion shillings equivalent to 79.4

percent of the annual target was mobilized from various sources
which primarily includes 21.31 trillion shillings collected by TRA,
4.93 trillion shillings mobilized from Grants and concessional loans
and 4.61 trillion shillings mobilized from Domestic borrowings.

As of April 2024, a total of 35.63 trillion shillings was released for

expenditure, equivalent to 80.3 percent of the annual target. Out of
the released amount, 23.29 trillion shillings was for recurrent
expenditure and 12.34 trillion shillings was for implementation of
development projects.

Page 4 of 23
 Tax Reforms

A. Amendments in the Value Added Tax Act, CAP 148

Value Added Tax - Exemption on new items

The following items have been incorporated/amended in the
Schedule to the Value Added Tax Act, 2014:-
(i) Supply and importation of motor vehicles, equipment,
machinery and other goods for official use of Tanzania
People’s Defence Force (Incorporated in item 18 to
Schedule Part 1 to the Act). Earlier under this item, the
exemption was restricted only to “Supplies of arms and
ammunitions, parts and accessories thereof, to the
armed forces”
Challenge: - Since the list of exempt items to People’s Defence
Force has been widened, especially when the term other goods has
been mentioned, it will be challenging for local suppliers as they
will be denied input on such purchases and the cost shall increase.
In other words when supplied locally it does not benefit much to
the recipients.
(ii) Supply of aircraft, aircraft engine, aircraft parts and
aircraft maintenance to a local air manufacturer,
assembling on production.
(Incorporated in item 31 to Schedule Part 1 to the Act).
Earlier this exemption was restricted only when supplied
to a local operator of air transportation.

This is a welcome change as most of these will be imported.

(iii) Supply and importation of water treatment chemicals,
water meter, sewage. Exemption only upon approval of
chemicals by the minister responsible for water.
(iv) Importation of Video Assistant Referee equipment and
accessories.
(v) Single Axle tractors (Power Tiller) HS Code 8701.10.00,
Spades and Shovels with HS Code 8201.10.00 and
Mattocks and Picks under HS Code 8201.30.00 (Added
Under Item 1 pf Part 1 of Schedule).

Page 5 of 23
 (vi) Supply of Double Refined Edible Oil from locally grown
seeds by a local manufacturer. This exemption has been
extended for one more year upto 30th June 2025. Last year
this exemption was granted upto 30th June 2024.

Value Added Tax - New items under Zero Rated

(i) Supply of Gold to the Central Bank of Tanzania.
(ii) Supply of Gold to domestic refineries.
(iii) Supply of locally manufactured fertilizer for one year.
(iv) Supply of textile products (Fabric & Garments) made using
locally grown cotton. (Last year this item was made Zero
Rated for one year upto 30th June 2024. Now the time limit
has been removed).

Value Added Tax Refunds

Value Added Tax Refunds to be paid within 30 days from the date
of submission of the refund applications.

This is a welcome change, however more clarity is required in case of

default by TRA.

Value Added Exemption Abolished

Supply of precious metals, gemstones and other precious stones
at refineries shall no longer be exempt.

Online Data Services –

Online Data Services will be under Value Added Tax Base.
(We expect to have more clarity on this under The Finance Act).

The VAT measures are expected to increase Government

Revenue by Tshs. 22,393 Million

Page 6 of 23
B. Amendments in the Income Tax Act, CAP 332

Charitable Institutions – Institutions dealing with advancement of

health services and environmental conservation shall be included
under charitable institutions and shall be exempt from Income Tax.
It may be noted that there are conditions and requirements already
in place to avail such exemption by charitable institutions u/s 64 of
the Income Tax Act 2004.

AMT Exemption: Tea processing companies which are persistently

making losses are now exempted from paying AMT.

EFD Required - Section 11 of ITA 2004 to be amended whereby a

requirement is being added to require Electronic receipts to
authenticate purchase made, except in case of foreign supplier or
any person who is not required to issue EFD.

Henceforth, any purchase incurred without an Electronic Receipts

shall not be allowed as deduction. Moreover TRA need not to verify
the receipts as all EFD issued under one’s TIN are automatically
available in their EFDMS.

This is a welcome move, as it will save substantial time during audit

by TRA personnel. However it is important that purchases made are
reconciled with VAT returns and financial accounts on a monthly
basis

Contributions by Public Institutions to Consolidated Fund -

15% contribution made by Public Institutions to the consolidated
fund shall now be treated as deductible expenditure for the purpose
of deriving their taxable income.

Passenger Transportation Business - The taxes on passenger

transportation business with gross income not exceeding Tshs. 100
Million (who are not bound to prepare accounts), have been changed
as under:-

CLASS A : Passenger transportation buses

S NO No of Passengers Current Tax Proposed Tax
1 Not more than 15 250,000 250,000
2 Between 16 to 25 550,000 650,000
3 Between 26 to 45 1,100,000 1,100,000
4 Between 46 to 65 1,600,000 1,600,000
5 More than 65 2,200,000 2,200,000

Page 7 of 23
 Non Residents to collect withholding tax – Non –Residents are
required to collect withholding tax @5% on payments made to
resident digital content creators.
(We await further clarification on this amendment through the
Finance Act)

Withholding tax on Industrial Minerals – Withholding tax of 2%

has been introduced on purchase of industrial minerals, except on
salt, metallic minerals and other precious minerals as stipulated in
the Mining Act, when sold by Primary Mining License or Artisnal
Miner.

Withholding tax on transfer of Digital Asset - Withholding tax of

3% has been introduced on transfer of digital assets. Even non-
residents are required to operate this and they shall be registered
with TRA under Simplified Tax Regime.

Withholding tax on business of Digital Content Creation -

Withholding tax of 5% has been introduced on the business of digital
content creation conducted by resident business entities.

Withholding tax on Agricultural Produce etc – A Final

Withholding tax of 2% has been introduced on payment by resident
entity for purchase of agricultural produce, fishing, animal and
poultry keeping besides forestry produce.

Amendment in Section 56 (Change in Control) - Section 56 (5) (a)

allotment of shares in a residence entity, shall be excluded from
applicability of Section 56. This amendment was introduced last
year where the wordings used were – “as a result of allotment of
new membership interest of the entity,” which was confusing and
now the same is absolutely clear that provision of section 56 shall
not apply on change on account of allotment of shares in a resident
entity, irrespective of status of the allottee.

Amendment in Section 19(2) (Set off of Brough Forward losses)

In the Finance Act 2020, this amendment was introduced, whereby
loss making companies for more than 4 years having taxable income
in the current year could set off only upto 70% of the current year
income. Now they will be able to set off only 60% of the current year’s
income from the brought forward losses

Page 8 of 23
Exemption of withholding on interest paid by Resident
Financial Institutions - Withholding tax shall be exempted on
interest paid by Resident Financial Institutions to Non-Residents
Financial Institutions and Funds which has agreement with the
Government of the United Republic of Tanzania to dispense
concessionary loans to resident banks and financial institutions
subject to certain conditions.

Regulations for Writing off Bad Debts – Regulations shall be made

to prescribe the recognition and writing off of bad debts.

This is a welcome change and should resolve the difficulty

experienced by various entities mainly banks and financial
institutions during assessments.

The Income Tax measures are expected to increase

Government Revenue by Tshs. 31,738 Million

Page 9 of 23
C. Amendments in Excise (Management and Tariff) Act, CAP 147

Reduction in excise duty rate on locally produced bottled water

with HS Code 2201.10.00 and 2201.90.00 from Shilling 63.80 to
Shilling 58 per litre.
Introduction of excise duty of Shilling 7,000 Per Litre on Imported
Un-denatured Ethyl Alcohol and Shilling 5,000 on locally produced
Un-denatured Ethyl Alcohol of an alcoholic strength by volume of
80% vol or higher (Ethanol) with HS Code 2207.10.00 except Un-
denatured Ethyl Alcohol used for purposes other than
manufacturing scheduled article upon recommendations of the
responsible Minister.

Introduction of excise duty of 10% of the value of stake on betting,

Gaming and national lottery. This amount collected shall be remitted
to Universal Health Insurance Fund.

Introduction of excise duty of 10% on advertisement fee in

Television, Print Media and radio stations for betting, gaming and
lotteries advertisement.

Introduction of excise duty of Shillings 300 Per Kilogram on

imported and locally manufactured Tomato Sauce and Tomato
Ketchup (other than tomato paste) with HS Code 2103.20.00 and
Chilli Sauce and Chilli Ketchup (other than chilli paste) and Mango
Pickle with HS Code 2103.90.00.

Introduction of excise duty of Shillings 500 Per Kilogram of locally

manufactured and imported solvent based paints and varnishes of
heading 32.08.

Introduction of excise duty of Shilling 963.90 Per Litre on

Imported opaque beer with HS Code 2206.00.20 and Shillings
2,959.74 on other imported beer made of mixed fruits with HS Code
2206.20.90.
2% of Excise Duty to be collected on carbonated soft drinks,
cosmetics products and alcoholic drinks to be remitted to Universal
Health Insurance Fund.
Electronics Tax Stamps Regulations, 2018 – to be amended to
require manufacturing license to be issued to the persons licensed
to manufacture excisable goods once the manufacturer have
installed ETS machines and factory have begun production.

The Excise Duty measures are expected to increase

Government Revenue by Tshs. 196,142 Million

Page 10 of 23
D. Amendments in the Tax Administration Act, CAP 438

Tax Ombudsman to be empowered in hearing and addressing

complaints emanates from tax decision, procedural, service and
administrative matters relating to such tax decision or objection.

Value of currency points to be changed from Shilling 15,000

currently to Shilling 20,000 from 01st July 2024.

This means that all penalties measured in currency points shall go

up by 33.33%.

Maximum Fine for offence of failure to issue EFD Receipt to be

1000 currency points (Equivalent to Shillings 15,000,000) u/s 86 (1)
of TAA 2015, against the current fine of 200 to 300 currency points.

There seems to be a typo error as when the value of a currency point is

Shilling 20,000, the value of 1,000 currency points after the
amendment should be Shillings 20,000,000 and not 15,000,000.

E. Amendments in The Vocational, Educational and Training Act,

CAP 82

SDL shall not be payable on casual labourers employed in the

execution of water projects managed by water authorities.

F. Amendments in The Road and Fuels Tolls Act CAP 220,

To charge Tsh 382 per kilogram of Compressed Natural Gas (CNG)

used in motor vehicles.

G. Amendments in Law of the Child Act, CAP 13

To introduce Registration Fee of Tsh 100,000 to the Day care centre

and crenches; and

To introduce Annual Fee of Tsh 200,000 to the day care centre and
crenches.

H. Amendments in The Port Act, 2004

To reinstate the mandate of collecting wharfage to the Tanzania Ports

Authority (TPA)

Page 11 of 23
I. Amendments in Sugar Industry Act, CAP 251

To give power to the National Food Reserve Agency (NFRA) to buy,

stock and reserve sugar as a National food reserve

To amend the NFRA regulations by including sugar as part of food

security; and

To charge Tsh 50 per kilogram of Sugar by-products originating from

sugar production (more clarity awaited).

J. Amendments in Cashewnut Industry Act, Number18

Cashewnut Board to collect and utilize revenue from export levy on

cashewnut for five years.

TRA to collect crops export and import levies (clarity required as

which department shall collect export levy).

K. Amendments in The Mining Act, CAP 123

To amend Section 90A (3) of the Mining Act, CAP 123, to exempt the
supply of gold to the Bank of Tanzania (BOT) from paying inspection
fee of 1 percent.

To reduce royalty rate from six (6) percent to two (2) percent on the
supply of gold to be sold to the Bank of Tanzania.

To reduce royalty rate from four (4) percent to two (2) percent on the
supply of gold to be sold to the domestic refineries.

L. Amendments in Gaming Act, CAP 41

To introduce gaming dealer’s certificate aplication fee of 10,000

shillings and certificate fee of 20,000 shillings.

To introduce the lottery centres regstration fee of 30,000 shillings.

To introduce license application fee of 500,000 shillings and Annual

fee of 1,000,000 shillings for supply of tokens used in slot machines.

M. Amendments in The Railway Act, 2017

Increase in railway development levy from 1.5 percent of CIF value to 2

percent of CIF value.

Page 12 of 23
N. Amendments in The Motor Vehicle (Tax Registration and
Transfer) Act, CAP 124

To include electrical motor vehicle in the scope of vehicle

registration.

O. Amendments in The Import Control Act, CAP 276

Introducing Industrial Development Levy on selected imported goods

as follows:
• 10 percent on wire rods with HS Code 7213.91.90;
• 10 percent on beer under heading 22.03;
• 5 percent on non-alcoholic beer with HS Code 2202.91.00;
• 5 percent on energy drinks with HS Code 2202.99.00;
• 10 percent on organic surface-active agents - detergents with
HS Code 3402.50.00 and
• 10 percent on liquid with HS Code 3402.90.00.

Further, The Industrial Development Levy will not apply to goods

originating from East African Community Partner States that meet
the East African Community Rules of Origin.

P. Amendments in The Export Levy, CAP 196

Introducing export levy at the rate of 10 percent on Crude Sunflower

Oil, Sunflower Cake, and Sunflower seeds.

Q. Various Government Fees and Levies of the Government

Agency

i. Tanzania Atomic Energy Commission

To amend the radiation inspection fee as follows:
a) To set a requirement of charging a fee of 0.1% of the
FOB value on exportation of animal products and
foodstuffs to foreign destinations where the destination
countries have a requirement of the Radiation
Certificate or when the exporter has requested the
certificate.

b) To reduce the radiation inspection and

certification fee from 0.4 % of the FOB
Value to 0.2% of the FOB value on
finished goods which are imported into
the country.

Page 13 of 23
ii. Fire and Rescue Force

To amend the Fire and Rescue Force Act, CAP 427 by

reducing the fee chargeable for training wardens on fire
prevention and cautionary measures from TZS 500,000
to TZS 200,000.

iii. Tanzania Civil Aviation Authority (TAA)

To charge a fee for renewing licenses to operate safety planes

(Air Operators Certificates - AOC) at the rate of 600 US dollars
per Company per year instead of the current rate of 600 US
dollars per aircraft per year.

iv. Ministry of Natural Resource and Tourism

To reduce the fee of Tanzanian Tourist Business License

which is paid by an agent of the mountain climbing from
US Dollar 2,000 per annum to TZS 3,000,000 per
annum. The fee shall be payable in Tanzanian shillings.

Page 14 of 23
 Budget Structure 2024/2025

Particulars TZS Millions TZS Millions %

Revenue
A. Domestic Revenue - Central Government 33,254,306 67.39%
(i) Tax Revenue (TRA) 29,415,289
(ii) Non-Tax Revenue 3,839,017
B. Local Government Revenue (LGAs own source) 1,356,341 2.75%
C. Grants and Concessional Loans from DPs 5,130,613 10.40%
(i) Grants and Concessional Loans - GBS 1,489,775
(ii) Grants and Concessional Loans - Projects 3,461,946
(iii) Grants and Concessional Loans - Basket 178,892
D. Domestic & External Non Concessional Loans 9,604,428 19.46%
(i) External Loans 2,986,638
(ii) Domestic Loans - Financing 2,595,417
(iii) Domestic Loans - Rollover 4,022,373
Total Revenue (A+B+C+D) 49,345,688 100.00%
Expenditure
E. Recurrent Expenditure
(i) CFS 15,736,279 31.89%
- Domestic Interest payments 3,146,668
- Domestic Principle payments (Rollover) 4,022,373
- External Principle payments 3,517,120
- External Interest payments 2,435,305
- Government Contribution to Pension Funds 2,000,000
- Other Expenditure under CFS 614,813
(ii) Wages and Salaries 11,767,987 23.85%
(iii) Other Charges (OC) 7,086,125 14.36%
- o/w LGAs Own Source 815,065
F. Development Expenditure
(i) Local 11,114,458 22.52%
- Clearance of arrears 400,000
- Railway Fund, Water Fund, Road Fund, REA
and TARURA 2,167,623
- LGAs Own Source 541,276
- Other Development Expenditure 8,005,559
(ii) Foreign 3,640,838 7.38%
Total Expenditure (E+F) 49,345,688 100.00%
Overall Budget Deficit (ss percentage of GDP) 2.9%
Source: Ministry of Finance

Page 15 of 23
 TOTAL REVENUE (TZS Millions)

33,254,306
35,000,000
30,000,000

9,604,428
25,000,000

5,130,613
1,356,341
20,000,000
15,000,000
10,000,000
5,000,000
0
Domestic Local Grants and Domestic &
Revenue - Government Concessional External Non
Central Revenue (LGAs Loans from DPs Concessional
Government own source) Loans

TOTAL EXPENSES (TZS Millions)

34,590,391

14,755,296

35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Recurrent Expenditure Development Expenditure

Page 16 of 23
 Annexure A

Amendments in the East African Community Customs Management Act, 2004

Particulars H S Code
I The proposed new changes in the Common External Tariff are as follows:
Grant Stay of Application of the EAC CET rate
10 percent and apply a duty rate of 35 percent on float, 7005.10.00; 7005.21.00;
1 toughened and multiple walled insulating units of glass 7005.29.00; 7005.30.00;
7007.19.00; 7007.29.00;
for one year.
7008.00.00

35 percent and apply a duty rate of 35 percent or USD 3 6907.21.00;

2 per square meter, whichever is higher for one year on 6907.22.00; and
ceramic tiles 6907.23.00

25 percent or USD 200/MT whichever is higher and apply 7210.49.00; 7210.61.00;

a duty rate of 25 percent or USD 300/MT whichever is 7210.69.00; 7210.70.00;
3
higher for one year on flat-rolled products of iron or non- 7210.90.00; and
alloy steel 7212.30.00.

35 percent and apply a duty rate of 25 percent or USD

300/MT whichever is higher for one year on Flat-rolled 7212.40.00;
4
products of iron or non84 7212.50.00.
alloy steel

10 percent and apply a duty rate of 10 percent or USD

5 300/MT whichever is higher for one year on flat-rolled 7212.60.00
products of iron or nonalloy steel
10 percent and apply a duty rate of 25 percent or USD
7225.91.00; 7225.92.00;
6 300/MT whichever is higher for one year on Iron and steel
7225.99.00
flat rods products
35 percent and apply a duty rate of 35 percent or USD
7 500/MT whichever is higher for one year on corrugated iron 7210.41.00
sheets
25 percent or 35 percent and apply a duty rate of 50
8 25.01
percent for one year on salt
10 percent and apply a duty rate of 10 percent or USD
9 300/MT whichever is higher for one year on semi-finished 7226.99.00
flat rolled products
1507.90.00; 1508.90.00;
15.09; 15.10; 511.90.30;
1511.90.90; 1512.19.00;
35 percent and apply a duty rate of 35 percent or USD
1512.29.00; 1513.19.00;
500/MT whichever is higher for one year on refined
1513.29.00; 1514.19.00;
vegetable oils
1514.99.00; 1515.19.00;
1515.29.00; 1515.50.00;
1515.60.00; 1515.90.00

Page 17 of 23
 The proposed new changes in the Common External Tariff are as follows:
Grant Duty Remission and at a duty rate

0 percent instead of 25 percent for 1 year on lithium-iron

10 8507.60.00
electric accumulators.

0 percent instead of 10 percent for one year on

11 8528.72.10; 8528.73.10
unassembled Television (CKD)

10 percent instead of 25 percent for one year on other

paper, paperboard, cellulose wadding and webs of cellulose
12 4811.90.00
fibres used to manufacture labels and thermal paper rolls
for cash registers, POS and EFD machines

10 percent instead of 35 percent for one year on float 7005.10.00; 7005.21.00;

13
glasses used to manufacture toughened glass 7005.29.00; 7005.30.00

0 percent instead of 25 percent or 35 percent for one year 3923.50.90; 4819.20.90;

14 on inputs used by domestic manufacturers of yoghurt, 4819.30.00; 4819.50.00;
powdered or UHT milk 4821.90.00; 7607.19.90

3215.19.00; 3403.99.00;
3506.91.00; 3818.00.00;
3907.99.00; 3907.99.00;
3916.90.00; 3917.39.00;
0 percent for one year on inputs and raw materials used to
15 3919.90.90; 3920.69.90;
manufacture optical fiber cables.
3920.99.90; 3921.14.90;
3921.90.90; 5402.11.00;
5404.90.00; 7019.90.90;
8536.90.00; 8544.49.00

All Partner States agreed 0 percent on inputs used for the 4817.30.00; 4819.10.00;
16 5407.51.00; 3921.19.90
manufacture mosquito repelants

All Partner States agreed 10 percent on Inputs used in the

17 2106.90.20
manufacture of foods and beverages

The proposed new changes in the Common External Tariff are as follows:
EAC Partner States agreed to grant Duty Remission at a duty rate
0 percent on various inputs used in the assembling or
18
manufacturing of mobile phones.

EAC Partner States agreed to amend

The structure of hybrid motor vehicle tariff lines to cater for 8703.40.00; 8703.50.00;
19
unassembled vehicle at import duty rate of 0 percent. 8703.60.00; 8703.70.00

Page 18 of 23
 Measures that were affected during 2023/24 and will continue to be
II
implemented in 2024/25 are as follows
Stay of Application of EAC - CET Rate H S Code

10 percent and apply a duty rate of 0 percent for one year

on cash registers and other Electronic Fiscal Device (EFD) 8470.50.00 and
1
Machines and Point of Sale (POS) of Imported by the 8470.90.00
Government or authorized persons.
0 percent and apply a duty rate of 10 percent for one year
2 on cocoa powder, not containing added sugar or other 1805.00.00
sweetening matter
7209.16.00; 7209.17.00;
7209.18.00;
7209.25.00; 7209.26.00;
10 percent and apply a duty rate of 10 percent or USD
7209.27.00;
3 125/MT whichever is higher for one year on iron and steel
7209.28.00; 7209.90.00;
products
7211.23.00;
7211.90.00; 7226.92.00;
and 7225.50.00
7213.10.00; 7213.20.00;
25 percent or USD 200/MT whichever is higher and apply 7213.99.00;
a duty rate of 25 percent or USD 250/MT whichever is 7306.30.00; 7306.50.00;
4
higher for one year on Iron and steel reinforcement bars 7306.61.00;
and hollow profiles 7306.69.00; and
7306.90.00

0 percent and apply a duty rate of 10 percent for one year

on monofilament of which any cross sectional dimension 3916.10.00; 3916.20.00;
5
exceeds 1mm, rods, sticks and profile shapes whether or and 3916.90.00.
not surface worked but not otherwise worked of plastics

10 percent and apply a duty rate of 25 percent on paper

6 4804.29.00
and paper products for one year.
25 percent and apply a duty rate of 25 percent or USD
7 1.35/kg whichever is higher for one year on safety 3605.00.00
matches

25 percent and apply a duty rate of 60 percent for one year

8 2201.10.00
on mineral water
0 percent and apply 10 percent for one year on gypsum
9 2520.20.00
powder
35 percent or USD 0.40/Kg whichever is higher and apply
6309.00.10; 6309.00.20
10 a duty rate of 35 percent on worn items of clothing,
and 6309.00.90
footwear and articles for one year.
10 percent and apply a duty rate of 25 percent for one year
11 on new pneumatic tyres of rubber, of a kind used on 4011.40.00
motorcycles

25 percent and apply a duty rate of 0 percent for one year 7310.10.00 and
12
on milk cans 7310.29.90

Page 19 of 23
 100 percent or USD 460/MT whichever is higher and
1701.99.10 and
13 apply a duty rate of 10 percent on refined sugar (sugar for
1701.99.20
industrial use)
10 percent and apply a duty rate of 10 percent or
14 USD125/MT whichever is higher for one year on flat-rolled 7212.20.00
products
25 percent and apply a duty rate of 35 percent for one year
15 9619.00.90
on baby diapers

10 percent and apply a duty rate of 25 percent for one year 52.05; 52.06; and 52.07
16
on cotton yarn except 5205.23.00.
0604.20.00; 0604.90.00;
25 percent and apply a duty rate of 35 percent on
17 0808.10.00; and
horticultural products for one year.
0808.30.00
10 percent and apply a duty rate of 25 percent on
18 5607.50.00
Polyester/ Nylon Twine for one year
25 percent and apply a duty rate of 0 percent on Smart
cards imported by the National Identification Authority for under HS Code
19
one year in order to facilitate issuance of National 8523.52.00
Identification Cards;
25 percent and apply a duty rate of 25 percent or USD
20 250/MT whichever is higher for one year on flat-rolled 7210.30.00
products of iron or non-alloy steel
5208.51.10; 5208.52.10;
5209.51.10; 5210.51.10;
50 percent and apply a duty rate of 35 percent on imported
21 5211.51.10; 5212.15.10;
Vitenge for one year
5212.25.10; 5513.41.10;
and 5514.41.10
5208.11.00; 5208.12.00;
5208.13.00; 5208.19.00;
5209.11.00; 5209.12.00;
25 percent and apply a duty rate of 25 percent or 0.25
5209.19.00; 5210.11.00;
22 USD per meter whichever is higher on imported cotton
5210.19.00; 5211.11.00;
grey fabric for one year.
5211.12.00; 5211.19.00;
5212.11.00; and
5212.21.00
10 percent and apply a duty rate of 25 percent on
23 imported items (Other paper, paperboard, cellulose 4811.90.00
wadding and webs of cellulose fibres) for one year.
25 percent and apply a duty rate of 0 percent on buses
8702.10.99 and
24 for transportation of more than 25 persons imported for
8702.20.99
rapid transport project for one year.

35 percent and apply a duty rate of 35 percent or USD

350 per metric ton whichever is higher on nails, tacks,
25 drawing pins, corrugated nails staples (other than those 7317.00.00
of heading 83.05) and similar articles of iron or steel,
whether or not with heads of other materials for one year.

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 100 percent or USD 460/MT whichever is higher and
apply a duty rate of 35 percent for one year on cane
26 1701.14.90
sugar imported under a permit issued by the Tanzania
Sugar Board.
1507.10.00; 1508.10.00;
0 percent and apply a duty rate of 10 percent for one
1513.11.00; 1513.21.00;
27 year on crude vegetable oils of soya-beans, groundnuts,
1514.11.00; 1514.91.00;
coconuts, mustard and linseed
and 1515.11.00

Grant Duty Remission and Apply Import Duty H S Code

0 percent instead of 10 percent for one year on corks and
28 stoppers used as inputs by domestic manufacturers of 4503.10.00
local wines
7310.21.00; 6305.10.00;
0 percent instead of 25 percent for one year on packaging
29 3923.50.10; 3923.50.90
materials used for packing processed coffee.
and 3920.30.90
0 percent instead of 25 percent for one year on sacks and
30 bags of polymers of ethylene used as inputs by domestic 3923.21.00
processors of cashew nuts.
0 percent instead of 25 percent for one year on inputs 3920.30.90; 6305.39.00;
31
used by domestic processors of cotton lint. and 7217.90.00
All partners states agreed to 0 percent instead of 25
32 percent or 10 percent on raw materials used to
manufacture sanitary pads and baby diapers.

3923.29.00; 6305.10.00;
0 percent instead of 25 percent for one year on packaging 4819.40.00; 7310.29.90;
33 materials for seeds used by local producers of 6305.33.00; 6305.20.00;
agricultural seeds. 6304.91.90 and
7607.19.90
10 percent instead of 35 percent on imported wheat 1001.99.10 and
34
grain for one year. 1001.99.90
0 percent instead of 10 percent on Refined Bleached
35 1511.90.40
Deodorized (RBD) Palm Stearin for one year.
All Partner States agreed on raw materials and industrial
36
inputs used to manufacture textiles and leather footwear.
0 percent instead of 10 percent for one year on organic
3402.31.00; 3402.39.00;
37 surface-active agents used by manufacturers of
and 3402.49.00
detergents and liquid soaps.
3208.20.10; 3208.20.20;
0 percent instead of 25 percent or 10 percent for one year
38 3208.90.20 and
on raw material used in leather processing
3210.00.10
0 percent instead of 25 percent or 10 percent for one year 2710.99.00;
39 on raw materials used to manufacture different types of 2528.00.00; and
fertilizers. 3505.20.00
0 percent instead of 25 percent for one year on packaging
40 materials for processed tobacco in order to reduce costs 5310.10.00
to processors of tobacco;

Page 21 of 23
 0 percent instead of 25 percent for one year on packaging 4819.20.90; 5407.44.00;
41
materials used by local manufacturers of tea (blenders). and 3923.29.00
10 percent instead of 25 percent for one year on CKD for
42 three-wheel motorcycle excluding chassis and its 8704.21.90.
components

3920.61.10, 7019.39.00,
0 percent instead of 25 percent or 10 percent for one year 7019.31.00, 6006.90.00,
43 on inputs used to manufacture glass reinforced plastic 7019.12.00, 3920.10.10,
pipes. 4016.93.00, and
3907.91.00
0 percent instead of 10 percent for one year on raw 1901.90.10; 3302.10.00;
44
materials used to manufacture food flavors. and 3505.10.00
4804.39.00; 4805.11.00;
0 percent instead of 10 percent or 25 percent for one year
45 4805.19.00; 4805.24.00;
on inputs used to manufacture corrugated boxes.
and 4805.25.00

10 percent instead of 35 percent for one year on inputs

46 HS Code 3401.20.10
used to manufacture soap.
7312.10.00; 7217.20.00;
7408.19.00; 7409.11.00;
0 percent instead of 10 percent or 25 percent for one year 7605.21.00; 2710.19.56;
47
on inputs used to manufacture electrical cables. 3815.90.00; 5402.19.00;
5903.90.00; 7907.00.00;
and 2712.10.00
72.14; 72.15; 72.16;
32.08; 73.07; 83.11;
85.44; 68.06; 74.19;
0 percent instead of 10 percent, 25 percent or 35 percent
72.08; 73.06; 73.12;
48 on inputs/raw materials used to manufacture capital
73.15; 73.18; 84.82;
goods/equipment for various sectors for one year.
84.83; 72.22; 73.04;
84.81; 84.84; 7325;
40.10; and 76.06
7409.11.00; 7409.19.00;
0 percent instead of 10 percent, 25 percent or 35 percent 7410.11.00; 7410.12.00;
49
for one year on inputs used to manufacture radiators. 7409.21.00; 8001.10.00;
and 3810.90.00
8538.90.00; 4016.99.00;
8205.59.00; 8536.10.00;
0 percent instead of 10 percent or 25 percent for one year
8536.69.00; 8536.90.00;
50 on inputs used to manufacture wiring harnesses for
8547.20.00; 3926.90.90;
vehicles and motorcycles.
3917.32.00; and
8544.30.00

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CONTACTS

AUDIT – TAX - ADVISORY

Plot #254 Alykhan Road, Upanga

P.O. Box 948, Dar es Salaam
T : +255 22 215 3137
M : +255 715 505678
E : sree@bsk.co.tz; kapil@bsk.co.tz

Our analysis highlights the main aspects of the Budget, presented in parliament
on 13th June 2024. The information contained in this analysis has been
compiled from the Budget speech read on 13th June 2024 and the economic
review. While all reasonable attempts have been made to ensure that the
information contained herein is accurate, Balakrishna Sreekumar & Co.
accepts no responsibility for any errors or omissions it contains whether caused
by negligence or otherwise. The review contains general information only and is
neither intended to be a comprehensive publication nor provide specific advice.

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