Tanzania: Tax provisions in 2017 budget - KPMG Global
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Tanzania: Tax provisions in 2017 budget

Tanzania: Tax provisions in 2017 budget

The second budget of the current government, presented in June 2017, reflects priorities for accelerating economic growth to attain middle income status, curbing revenue leakage and resource wastage, improving infrastructure, and reforming government bureaucracy to enhance service delivery.


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Tax proposals included in the 2017 budget for Tanzania include:

  • Changes to the alternative minimum tax, for persons in a loss position for three consecutive years
  • An increase to the value of non-commercial vehicles qualifying for capital allowances
  • A reduction in the rate of the corporate income tax, from 30% to 10%, for the first five years of commencing operations for taxpayers involved in the new assembly of vehicles, tractors, and fishing boats
  • A value added tax (VAT) exemption on the procurement and import of capital goods used in the production of edible oil, textiles, leather, and pharmaceuticals 
  • A VAT rate of 0% on ancillary transport services
  • An exemption from VAT for locally produced compounded animal feeds and on fertilised poultry eggs used for incubation
  • Various changes to the rates of import customs duties


Read a June 2017 report [PDF 5.35 MB] prepared by the KPMG member firm in Tanzania

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